The effects of weight-based waste tariff on recycling quantities

Sammanfattning: In this paper, I investigate households’ participation in recycling schemes given the pricing policy applied by the municipal waste management organisation. This study aims to provide insights into the effect financial incentive policy has on the recycling quantities of packaging materials. I estimate the effect on the total packaging waste and the four separate material categories glass, plastic, paper, and metal. The econometric models applied are FE regression and pooled OLS regression using historical data of the municipality's average quantity collected of each material category per person and year. Findings show that implementing and using weight-based billing positively affects three of four material categories. Thus, the conclusion is that this incentive-based policy positively affects the total collection of packaging materials intended for recycling.