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Unit pricing of municipal solid waste and illegal dumping: an empirical analysis of Korean experience

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Using a fixed effects panel regression model for count data on illegal dumping incidents in 16 provinces in Korea from 2001 to 2003 as reported by civilians to local government, we analyzed the effect of the unit pricing system on the propensity for illegal dumping. We found that a 1% increase in the unit price of a trash bag led to a 3% increase in the number of reports of illegal dumping. The policy implication is that charging households more for recouping waste disposal costs must be reconsidered and the incentive of compensation for recycling is more effective in curbing illegal dumping than the threat of enforcement.

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Kim, GS., Chang, YJ. & Kelleher, D. Unit pricing of municipal solid waste and illegal dumping: an empirical analysis of Korean experience. Environ Econ Policy Stud 9, 167–176 (2008).

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