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Cost savings of unit-based pricing of household waste: The case of the Netherlands

Author

Listed:
  • Elbert Dijkgraaf

    (Erasmus University Rotterdam)

  • Raymond Gradus

    (Erasmus University Rotterdam & Min. of Social Affairs)

Abstract

Using a panel data set for Dutch municipalities we estimate effects for weight-based, bag-based, frequency-based and volume-based pricing of household waste collection. Unit-based pricing shows to be effective in reducing solid and compostable and increasing recyclable waste. Pricing has no effect on the waste collected in surrounding municipalities (waste tourism). However, unit-based pricing may lead to illegal dumping. While empirical evidence is scarce, a social cost-benefit analysis shows that if the social valuation of illegal dumping is in line with the social costs for collecting and treating solid waste, the weight or bag-based systems are preferable.

Suggested Citation

  • Elbert Dijkgraaf & Raymond Gradus, 2004. "Cost savings of unit-based pricing of household waste: The case of the Netherlands," Public Economics 0409001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0409001
    Note: Type of Document - pdf; pages: 22
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    References listed on IDEAS

    as
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    3. Don Fullerton & Thomas C. Kinnaman, 2002. "Household Responses to Pricing Garbage by the Bag," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 4, pages 88-101, Edward Elgar Publishing.
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    More about this item

    Keywords

    municipal waste management; social welfare; unit-based pricing systems;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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