2018
DOI: 10.2139/ssrn.3183702
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The Effects of Pricing Waste Generation: A Synthetic Control Approach

Abstract: To internalize pollution externalities into household waste generation, Unit Pricing Systems (UPS) have been adopted worldwide. This paper evaluates the causal effects of a UPS on the disposal of municipal solid waste in Trento, Italy. To account for policy endogeneity due to unobservables, we employ the synthetic control method on a unique panel of monthly waste generation. Our results show that the policy was effective, with a significant decrease of the priced waste stream, unsorted waste, by 37.5%. This ef… Show more

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Cited by 9 publications
(12 citation statements)
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References 44 publications
(16 reference statements)
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“…These authors conclude that this type of economic stimulus makes it possible to decrease the generation of waste and, at the same time, to increase recycling levels. Similar conclusions are drawn from other studies not focused on the Spanish case, such as Sakai et al (2008) for Japan or Bueno and Valente (2019) who analyze the experience of Trento (Italy). The results of these works indicate that the reductions in waste generation are around 30% after applying these unitpricing schemes.…”
Section: Discussion Of Results and Implicationssupporting
confidence: 87%
“…These authors conclude that this type of economic stimulus makes it possible to decrease the generation of waste and, at the same time, to increase recycling levels. Similar conclusions are drawn from other studies not focused on the Spanish case, such as Sakai et al (2008) for Japan or Bueno and Valente (2019) who analyze the experience of Trento (Italy). The results of these works indicate that the reductions in waste generation are around 30% after applying these unitpricing schemes.…”
Section: Discussion Of Results and Implicationssupporting
confidence: 87%
“…Also, SCM is data-driven and has no requirements for sample size. With the above features, no wonder SCM has been widely employed in a variety of policy effect assessment as well as program evaluation (Bueno and Valente, 2019;Castillo et al, 2017;Hsiao and Wan, 2014;Peter, 2016). In contrast, the difference-in-differences technology might be biased since it chooses control units at random, thus resulting in a biased estimator of the counterfactual.…”
Section: Methodsmentioning
confidence: 99%
“…The idea behind this method is that a combination of untreated branches may provide a better comparison for the branches exposed to the price. The synthetic control method introduces control for the time-varying heterogeneity because the combination of branches comprising the synthetic control is the result of an optimization across branches and time (Bueno and Valente, 2019).…”
Section: Wave-specific Synthetic Controlsmentioning
confidence: 99%