Dutch Municipalities are Becoming Greener: Some Political and Institutional Explanations

Abstract

This paper analyzes whether Dutch municipalities became greener between 1999 and 2014 by investigating whether they implement different unit-based pricing systems. Based on their incentive, systems are ranged from green (“weight”) to less green (“volume”), or not green (“flat rate”). In one-third of the municipalities, shifts took place, with 83 percent becoming greener and 17 percent less green. Political fragmentation (measured in three ways) plays a key role in explaining these shifts. There is less evidence for political motivation. Particularly, Conservative Liberals are not in favor of unit-based pricing, whereas Social Liberals are in favor. In addition, municipalities in rural and shrinking areas are more in favor of unit-based pricing.

Keywords: local government, unit-based waste pricing, greener, less green, ideological motivation

JEL Classification: D72, H76, H79