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PRICE AND SUBSTITUTION IN RESIDENTIAL SOLID WASTE
Author(s) -
ISELY PAUL,
LOWEN AARON
Publication year - 2007
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2007.00048.x
Subject(s) - economics , unit price , unit (ring theory) , price elasticity of demand , welfare , econometrics , elasticity (physics) , regression analysis , microeconomics , agricultural economics , statistics , mathematics , market economy , materials science , mathematics education , composite material
Many per‐unit curbside recycling and garbage collection pricing systems were implemented in the 1990s. A detailed data set is used to estimate the effect of an increase in the per‐unit price change for a long‐running pricing system across time in one city. A fixed‐effects regression controls for collection district and explanatory variables including weather, time, and employment changes. The elasticity estimate is within the range of previous work but with a higher cross‐price elasticity to recycling. This shift to recycling results in significant financial benefits to the city and a small decrease in social welfare. ( JEL Q5, Q53)