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Municipal demand for solid-waste-disposal services: The impact of user fees

Thesis/Dissertation ·
OSTI ID:5483491

Residential waste-disposal services (WDS) are usually financed through general revenues or flat-fee charges so that the marginal cost to households of disposing of a container of refuse is zero. A user fee for WDS should provide incentive to households to reduce the quantity of refuse discarded. In this study the household's decision regarding the quantities of waste to discard and recycling is modeled within a utility-maximization framework. Theoretical results are determined and then empirically implemented in terms of a panel data model. The data set includes time-series observations on quantities of waste collected and prices charged for WDS in five user-fee communities and in four non-user-fee communities. Some of the independent variables are per capita income, the price received for recyclables, and the level of employment. A special problem that arises is that some of the data relate to residential waste discarded, some to commercial waste, and some to the aggregate of residential and commercial. Results of this estimation suggest that response of the household and the firm to user fees for WDS is significant.

Research Organization:
Maryland Univ., College Park, MD (United States)
OSTI ID:
5483491
Country of Publication:
United States
Language:
English