Garbage and Recycling with Endogenous Local Policy |
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Authors: | Thomas C Kinnaman Don Fullerton |
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Institution: | Department of Economics, Bucknell University, Lewisburg, Pennsylvania, 17837, f1;Department of Economics, University of Texas at Austin, Austin, Texas, 78712, , f2 |
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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. |
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