Decision-making on Garbage Fees at the Local Government Level

Abstract

This paper presents some of the primary factors involved in introducing garbage fees by local governments in Japan, and explains how the price per bag of garbage is set. Whether a local government introduces a garbage fee or not does not strongly depend on the cost of managing wastes. Instead, it depends more heavily on the financial situation of that particular government. The price level for a garbage bag is affected by income levels and the number of explanation sessions in the community. In addition to these endogenous factors, exogenous factors such as decision-making regarding garbage fees by adjacent communities also play a significant role in the decision process-both in introducing garbage fees and setting prices.