The Socially Optimal Recycling Rate: Evidence from Japan
Publication Date
2014
Description
This paper estimates the average social cost of municipal waste management as a function of the recycling rate. Social costs include all municipal costs and revenues, costs to recycling households to prepare materials estimated with an original method, external disposal costs, and external recycling benefits. Results suggest average social costs are minimized with recycling rates well below observed and mandated levels in Japan. Cost-minimizing municipalities are estimated to recycle less than the optimal rate. These results are robust to changes in the components of social costs, indicating that Japan and perhaps other developed countries may be setting inefficiently high recycling goals. (C) 2014 Elsevier Inc. All rights reserved.
Journal
Journal of Environmental Economics and Management
Volume
68
Issue
1
First Page
54
Last Page
70
Department
Economics
Link to Published Version
http://www.sciencedirect.com/science/article/pii/S0095069614000230
Recommended Citation
Kinnaman, Thomas C.; Shinkuma, Takayoshi; and Yamamoto, Masashi. "The Socially Optimal Recycling Rate: Evidence from Japan." Journal of Environmental Economics and Management (2014) : 54-70.