A ridge regression approach to estimate the relationship between landfill taxation and waste collection and disposal in England

Luca Panzone*, Alistair Ulph, Francisco Areal, Valeria Grippo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)

Abstract

The production of household waste is characterised by externalities and market failure, where the decision to consume does not consider the environmental impact of consequent waste generated. Policy interventions in the UK have focused primarily on pricing the disposal of waste through a landfill tax. This article tests the effectiveness of landfill taxation on household waste collection and disposal. Using a ridge regression with correction for fixed effects on a panel dataset of English local authorities, we estimate the landfill tax elasticity of waste for a range of waste disposal and collection streams. Results indicate that the landfill tax is elastic at disposal and effective in shifting waste from landfills to incineration. The tax is inelastic at collection, and encourages recycling. Our results indicate that landfill taxation is an important tool to change how waste is disposed by households and local authorities.

Original languageEnglish
Pages (from-to)95-110
Number of pages16
JournalWaste Management
Volume129
Early online date26 May 2021
DOIs
Publication statusPublished - 15 Jun 2021
Externally publishedYes

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