Adopting a Unit Pricing System for Municipal Solid Waste: Policy and Socio-Economic Determinants

Concerns about the environmental and aesthetic damages of municipal solid waste pollution have triggered policy reform at all levels of government. As part of this effort, public officials are integrating market-based policy instruments such as unit pricing into their solid waste plans. Despite the economic advantages of unit pricing, constituency response has been mixed and hence adoption rates have been below expectations. If the associated gains are to be realized, public officials must identify the key factors that influence this decision. To that end, this research empirically estimates the determinants of unit pricing adoption at the community level of analysis. Based on data for all cities and towns in Massachusetts, the results indicate that demographics, socio-economic attributes, fiscal capacity, and policy instruments influence this decision.