By Organisation for Economic Co-Operation and Development
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Extra resources for Addressing the Economics of Waste
For a good and recent discussion of disposal methods and policies, see Porter (2002). 15. These external costs could be estimated from effects on property values (Hite et al, 2001). , 1992, as cited in Beede and Bloom, 1995). Ten studies reviewed by CSERGE (1993) found that prices are 21-30% lower for houses within half mile of a landfill, and they increase 5-7% for each mile further away (up to four miles). From interviews, Roberts et al. (1991) find that households are willing to pay $227 per year to avoid having a landfill nearby.
A version of the model above can be used to show the quantity restrictions that achieve efficient outcomes, at least in theory, but the information required to achieve those efficient outcomes is not likely to be available to policymakers. This point is just a variant of the usual economic efficiency case for incentive instruments rather than mandates. The general case for mandates is discussed more below. 11. Demand for each type of disposal in this model depends explicitly on price and income, and implicitly on demographic characteristics and intrinsic motivation.
Two studies rely on self-reported garbage quantities from individual households (rather than as reported by municipal governments). Hong et al. (1993) utilize data based on 4,306 surveys. Households indicate whether they recycle and how much they pay for garbage collection. Results indicate that a UPS increases the probability that a household recycles, but does not appreciably affect the quantity of garbage produced at the curb. In a later study, Hong (1999) shows that as households 50 engage in more recycling, they reduce their source reduction efforts.
Addressing the Economics of Waste by Organisation for Economic Co-Operation and Development