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Garbage and Recycling with Endogenous Local Policy

Thomas C. Kinnaman, Bucknell University
Don Fullerton, University of Texas at Austin

Abstract

This paper estimates the impact of a user fee and a curbside recycling program on garbage and recycling amounts, allowing for the possibility of endogenous policy choices. Without correction for endogenous policy, the price per unit of garbage collection has a negative effect on garbage and a positive cross-price effect on recycling. When we correct for endogenous policy, then the effect of the user fee on garbage increases. The implementation of a $1 per bag user fee is estimated to reduce garbage by 412 pounds per person per year.

Suggested Citation

Thomas C. Kinnaman and Don Fullerton. "Garbage and Recycling with Endogenous Local Policy" Journal of Urban Economics 48 (2000): 419-442.
Available at: http://works.bepress.com/don_fullerton/13