Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Social and Behavioral Sciences
Two Generalizations Of A Depost-Refund System, Don Fullerton, Ann Wolverton
Two Generalizations Of A Depost-Refund System, Don Fullerton, Ann Wolverton
Don Fullerton
This paper suggests two generalizations of the deposit-refund idea. In the first, we apply the idea not just to solid waste materials, but to any waste from production or consumption -- including wastes that may be solid, gaseous, or liquid. Using a simple general equilibrium model, we derive the optimal combination of a tax on a purchased commodity and subsidy to a “clean” activity (such as emission abatement, recycling, or disposal in a sanitary landfill). This “two-part instrument” is equivalent to a Pigovian tax on the “dirty” activity (such as emissions, dumping, or litter). In the second generalization, we consider …
Garbage And Recycling With Endogenous Local Policy, Thomas C. Kinnaman, Don Fullerton
Garbage And Recycling With Endogenous Local Policy, Thomas C. Kinnaman, Don Fullerton
Don Fullerton
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.