Solid Waste Market Distortions And Recycling
numerical example demonstrates the effects of flat fee pricing on both waste generation and recycling. In the presence of flat fee pricing, the cost of recycling has no impact on the behavior of households, and thus households are not responsive to recycling subsidies. The results show that introducing a unit-based pricing scheme for waste collection can stimulate recycling far more effectively than subsidies and improve the effectiveness of recycling policies.
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