Garbage and Recycling with Endogenous Local Policy

Posted: 28 Sep 2001

See all articles by Thomas C. Kinnaman

Thomas C. Kinnaman

Bucknell University - Department of Economics

Don Fullerton

University of Illinois at Urbana-Champaign - Department of Finance; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

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.

Suggested Citation

Kinnaman, Thomas C. and Fullerton, Don, Garbage and Recycling with Endogenous Local Policy. Journal of Urban Economics, Vol. 48, No. 3, November 2000. Available at SSRN: https://ssrn.com/abstract=246756

Thomas C. Kinnaman (Contact Author)

Bucknell University - Department of Economics ( email )

Lewisburg, PA 17837
United States
570-524-3465 (Phone)

Don Fullerton

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
(217) 244-3621 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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