Garbage and Recycling with Endogenous Local Policy

Thomas C. Kinnaman; Don Fullerton

doi:10.1006/juec.2000.2174

Garbage and Recycling with Endogenous Local Policy

Thomas C. Kinnaman, Don Fullerton

Research output: Contribution to journal › Article › peer-review

Abstract

This paper estimates the impact of garbage fees and curbside recycling programs on garbage and recycling amounts. Without correction for endogenous policy, a price per bag of garbage has a negative effect on garbage and a positive cross-price effect on recycling. Correction for endogenous local policy increases the effect of the user fee on garbage and the effect of curbside recycling collection on recycling. Introducing a fee of $1 per bag is estimated to reduce garbage by 412 pounds per person per year (44%), but to increase recycling by only 30 pounds per person per year.

Original language	English (US)
Pages (from-to)	419-442
Number of pages	24
Journal	Journal of Urban Economics
Volume	48
Issue number	3
DOIs	https://doi.org/10.1006/juec.2000.2174
State	Published - Nov 2000
Externally published	Yes

ASJC Scopus subject areas

Economics and Econometrics
Urban Studies

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10.1006/juec.2000.2174

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title = "Garbage and Recycling with Endogenous Local Policy",

abstract = "This paper estimates the impact of garbage fees and curbside recycling programs on garbage and recycling amounts. Without correction for endogenous policy, a price per bag of garbage has a negative effect on garbage and a positive cross-price effect on recycling. Correction for endogenous local policy increases the effect of the user fee on garbage and the effect of curbside recycling collection on recycling. Introducing a fee of $1 per bag is estimated to reduce garbage by 412 pounds per person per year (44%), but to increase recycling by only 30 pounds per person per year.",

author = "Kinnaman, {Thomas C.} and Don Fullerton",

note = "Funding Information: *We are grateful for suggestions from Jan Brueckner, Gaby Inchauste, Robin Jenkins, Arik Levinson, Debbie Nestor, Ed Olsen, Michael Podolsky, Jon Skinner, Steve Stern, Joe Terza, and anonymous referees. We are also grateful for funding from NSF Grants SES-91-22785 and SBR-94-13334, and from the Bankard Fund at the University of Virginia. This paper is part of NBER{\textquoteright}s research program in Public Economics. Any opinions expressed are those of the authors and not those of the National Science Foundation or the National Bureau of Economic Research.",

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AB - This paper estimates the impact of garbage fees and curbside recycling programs on garbage and recycling amounts. Without correction for endogenous policy, a price per bag of garbage has a negative effect on garbage and a positive cross-price effect on recycling. Correction for endogenous local policy increases the effect of the user fee on garbage and the effect of curbside recycling collection on recycling. Introducing a fee of $1 per bag is estimated to reduce garbage by 412 pounds per person per year (44%), but to increase recycling by only 30 pounds per person per year.

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Garbage and Recycling with Endogenous Local Policy

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