The Effect of Garbage Reduction and Recycling Promotion Policy

Abstract

This paper provides an empirical analysis of the effects of garbage reduction and recycling promotion policy in Japan. Our study makes the following contributions: First, we employ SUR (seemingly unrelated regression) estimation, a model that was developed by Zellner (1962), because households dispose garbage and recyclable materials simultaneously. Second, we point out that the number of segregations, the frequency of collection, and a volume-based pricing system are policies that effectively promote garbage reduction and recycling. Third, we estimate the price elasticity of garbage, which is -0.0257 at the average price (=1.708 yen).