Explaining the Growth in Municipal Recycling Programs: The Role of Market and Non-Market Factors

The implementation of thousands of municipal recycling programs in the United States has increased recycling’s portion of solid waste from 10% to 30% over the past decade. But the lack of accurate data has spurred a debate over whether the growth in recycling can be attributed to market or nonmarket factors. To address this issue, this article conducts a benefit-cost analysis of a municipal recycling program. Results suggest recycling is costly. So why, then, does it remain popular? This article suggests that local governments could be responding to households that perceive a benefit from recycling services. These benefits are estimated with a contingent valuation survey.

The Costs of Municipal Curbside Recycling and Waste Collection

This paper estimates cost functions for both municipal solid waste collection and disposal services and curbside recycling programs. Cost data are obtained from a national survey of randomly selected municipalities. Results suggest, perhaps unsurprisingly, that both marginal and average costs of recycling systems exceed those of waste collection and disposal systems. Economies of scale are estimated for all observed quantities of waste collection and disposal. Economies of scale for recycling disappear at high levels of recycling - marginal and average cost curves for recycling take on the usual U-shape. Waste and recycling costs are also estimated as functions of factor costs and program attributes.

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.

Landfill Closure and Housing Values

The United States disposes roughly 60% of the municipal solid waste it generates each year in solid waste disposal facilities, commonly known as landfills. Hedonic pricing studies have estimated the external costs of landfills on neighboring housing markets, but the literature is silent on what happens to property values after the landfill closes. Original housing price data collected both before and after a landfill closure are used to estimate how a landfill closure affects neighboring property values. Results of both a hedonic pricing model and repeat-sales estimator are used in the analysis.

Optimal Solid Waste Policy with Centralized Recycling Opportunities

Economic models have demonstrated the efficiency of curbside collection taxes. This paper demonstrates that such efficiencies disappear in economies with centralized recycling options - where recyclable materials can be removed from the waste stream either by households or at a centralized recycling facility. In such economies a curbside garbage tax not only fails to encourage the centralized recycler to internalize the external costs of waste disposal, but introduces inefficiencies to the cost-minimizing mix of household and centralized recycling efforts. The optimal waste policy is a tax assessed further downstream at the landfill rather than at the curb.

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.

The Economics of Residential Solid Waste Management

This paper provides a broad overview of recent trends in solid waste and recycling, related public policy issues, and the economics literature devoted to these topics. Public attention to solid waste and recycling has increased dramatically over the past decade both in the United States and in Europe. In response, economists have developed models to help policy makers choose the efficient mix of policy levers to regulate solid waste and recycling activities. Economists have also employed different kinds of data to estimate the factors that contribute to the generation of residential solid waste and recycling and to estimate the effectiveness of many of the policy options employed.

Why do Municipalities Recycle?

The disposal of municipal solid waste is believed to emit foul odor, threaten groundwater, and increase road congestion. As remote regional landfills have replaced local town dumps, these costs are no longer internalized by garbage-producing households or their municipalities. Instead, rural property owners located adjacent to large regional landfills and along the roadways accessing those landfills bear the external costs of garbage disposal. This paper uses a comprehensive nine-year panel data set of aggregated state data to empirically examine why 8,937 municipalities continue to operate costly recycling programs designed to reduce the external costs of garbage disposal. Results suggest that local tastes for recycling drive municipal decisions. If household preferences for recycling are short lived, then we can expect a future decrease in the number of municipal recycling programs. Recent data indicate the number of recycling programs in operation in the U.S. has indeed fallen.

Behavioral Economics and Physician Behavior

This study seeks to answer whether the availability heuristic leads physicians to utilize more medical care than is economically efficient. Do rare, salient events alter physicians' perceptions about the probability of patient harm? Do these events lead physicians to overutilize certain medical procedures? This study uses Pennsylvania inpatient hospital admissions data from 2009 aggregated at the physician level to investigate these questions. The data come from the 2009 Pennsylvania Health Care Cost Containment Council (PHC4). The study is divided into two parts. In Part I, we examine whether bad outcomes during childbirth (defined as maternal mortality, an obstetric fistula or a uterine rupture) lead physicians to utilize more cesarean sections on future patients. In Part II, we examine whether bad outcomes associated with appendicitis (defined as patient death, a perforated or ruptured appendix or sepsis) lead physicians to perform more negative appendectomies (appendectomies performed when the patient did not have appendicitis) on future patients. Overall the study does not find evidence to support the claim that the availability heuristic leads physicians to overutilize medical care on future patients. However, the study does find evidence that variations in health care utilization are strongly correlated with individual physician practice patterns. The results of the study also imply that physicians' financial incentives may be a source of variation in health care utilization.

Thought-Action Fusion and Neutralization Behavior

This study presents a new inventory to assess thought-action fusion (TAF). 160 college students ages 18 to 22 (M = 19.17, SD = 1.11) completed the new Modified Thought Action Scale (MTAFS). Results indicated high internal consistency in the MTAFS (Cronbach’s α = .95). A principal component analysis suggested a three factor solution of TAF-Moral (TAFM), TAFLikelihood (TAFL), and TAF-Harm avoidance-Positive (TAFHP) all with eigenvalues above 1, and factor loadings above .4. A second study examined the association between TAF, obsessivecompulsive and anxiety tendencies after the activation of TAF-like thought processes in a nonclinical sample (n=76). Subjects were randomly assigned to one of three treatment groups intended to provoke TAFL-self, TAFL-other, and TAF moral thought processes. Stepwise regression analyses revealed: 1) the Obsessive-Compulsive Inventory subscales Neutralizing and Ordering significantly predicted instructed neutralization behavior (INB) in non-clinical participants; 2) TAF-Likelihood contributed significant unique variance in INB. These findings suggest that the provocation of neutralization behavior may be mediated by specific subsets of TAF and obsessive-compulsive tendencies.

The contexts of scratching behavior and postconflict behavior in squirrel monkeys (Saimiri sciureus)

Self-directed behavior (SDB), such as scratching, is a reliable indicator of emotional arousal in non-human primates. In contrast, affiliative behavior, such as social grooming, has been shown to have a calming effect in primates and reduce arousal. In order to test whether the expression of SDB was related to arousal, the scratching behavior of eight captive squirrel monkeys (Saimiri sciureus) was compared across four social contexts (huddling, proximity to others, solitary and post-conflict). In addition,rates of scratching were examined before and after affiliative behavior during the postconflict context. I tested for this effect by using the post-conflict/matched control(PC/MC) method in which post-conflict (PC) behavior of an animal is compared to thebehavior of the same animal in a baseline, nonaggressive situation or a matched control(MC). Context and associated scratching data were obtained from a total of 98 hours of focal sample data. Scratching was significantly lower while animals were huddling thanthe other two contexts. Scratching rates while solitary were significantly higher than those occurring while animals were in proximity. Scratching was also higher in PC than MC. Following conflict, animals were significantly more likely to make contact withthird parties not involved in aggression. Most of these (79%) were a third party approaching a combatant. Further, scratching rates decreased following post-conflict third party contacts and the decrease was not due to a general decrease in scratching thatmight have been occurring after the aggressive interaction. Huddling behavior appears to reduce arousal in squirrel monkeys and may act as a tension-reduction mechanism. The elevated scratching in the solitary context may suggest that squirrel monkeys may be engaged in activities while solitary, such as vigilant behavior that may increase arousal. The third party post conflict affiliative contacts observed were the first such interactions observed in squirrel monkeys. The fact that these third contacts reduced scratching ratesin the combatants indicates that 'consolation' may have been demonstrated in this species. The overall pattern of results suggested that scratching was reliable behavioral indicator of anxiety in squirrel monkeys. These results indicate that overt behavior can be used to assess emotional states in this and other species, acting as a mediator to understanding how emotions regulate social behavior.