Examining the Justification for Residential Recycling

Municipalities in the United States have for the past two decades initiated two policies to reduce residential solid waste generation by increasing recycling. The first policy, implemented in over 4,000 municipalities in the United States, requires households to pay a fee for each unit of garbage presented at the curb for collection. The second policy, initiated in 8,875 municipalities, subsidizes household recycling efforts by providing free curbside collection of certain recyclable materials. Both initiatives serve as examples of incentive-based environmental policies favored by many economists. But before economists can celebrate this wide-spread adoption of incentive-based environmental policies, further examination reveals that potentially inefficient command and control policies have been more instrumental in promoting recycling than might be commonly known. This article examines the empirical lessons gained from studying twenty years of solid waste policy in the United States and argues for the replacement of several state recycling mandates with a system of state and/or national landfill taxes.

Economic Policies to Address the Environmental Consequences of Global Reuse

This paper summarizes a two-country model that solves for optimal tax rates to achieve efficiency in an economy with international trade in used consumer electronics. If only the developed nation can tax the disposal of e-waste, then the global Pareto Optimum can be obtained by either imposing an import tariff on used consumer electronics or subsidizing the return of e-waste for disposal in the developed country. The global Pareto Optimum can also be obtained by reducing the disposal tax in the developed country to a level below the external marginal cost of disposal should no other policy option be available.