Garbage and Recycling with Endogenous Local Policy

This paper estimates the impact of a user fee and a curbside recycling program on garbage and recycling amounts, allowing for the possibility of endogenous policy choices. Without correction for endogenous policy, the price per unit of garbage collection has a negative effect on garbage and a positive cross-price effect on recycling. When we correct for endogenous policy, then the effect of the user fee on garbage increases. The implementation of a $1 per bag user fee is estimated to reduce garbage by 412 pounds per person per year.