Using Matching Estimators to Evaluate the Effect of Unit-Based Pricing on Municipal Solid Waste Disposal

The delivery of municipal services for the collection, transfer, and disposal of household solid waste is often provided by local governmental units; typically at the town or city level. Unit-based pricing, also known as pay-as-you-throw (PAYT), is a residential solid waste collection program requiring households to pay a fee per bag of trash disposed. Unit-based pricing represents a significant departure from the historical practice of financing solid waste service from property tax revenues in which the marginal cost to a household for disposing solid waste is effectively zero. Local governments are motivated to adopt unit-based pricing for the purpose of creating a financial incentive for households to reduce the quantity of solid waste disposed and concurrently increasing the level of recycled materials. The objective of this study is to evaluate the impact of unit-based pricing of household solid waste disposal. A counter-factual model is used to estimate the program effect. The study area for this paper consists of the 234 incorporated towns and cities in the state of New Hampshire. As of 2008, 40 towns had adopted a form of unit-based pricing of household solid waste. Results from propensity score matching suggest there is an average annual reduction of 466 pounds of household solid waste due to unit-based pricing.Propensity score matching, unit-based pricing, pay-as-you-throw, municipal solid waste, Environmental Economics and Policy,

THE ROLE OF ECONOMIC ANALYSIS IN LOCAL GOVERNMENT DECISIONS: THE CASE OF SOLID WASTE MANAGEMENT

The issue of solid waste management has risen to national prominence in the last decade, fueled by increasing waste disposal costs and changing public attitudes. This situation presents a major opportunity for economists to use their applied microeconomics skills to assist state and local governments manage waste in a cost effective fashion. While findings from formal research efforts may ultimately make their way into the decision-making process, perhaps economists can play an even more significant role in emphasizing the importance of the most basic economic concepts and principles for sound decision making in solid waste management or the many other areas in which local public choices are made. These areas would include at least the following: opportunity cost, marginal analysis of costs and benefits, and the role of economic incentives.Public Economics,

ENERGY DEVELOPMENT AND LABOR MARKET DYNAMICS: A STUDY OF SEVEN WESTERN COUNTIES

Impacts of energy development on the secondary business sector of development-impacted counties are examined in a survey of seven western counties. Problems experienced by businesses in attracting and retaining qualified employees and in expanding to take advantage of growing markets are evaluated. Characteristics of private and public sector employees and their implications for community planning are discussed.Community/Rural/Urban Development, Labor and Human Capital,

Impacts of Energy Development on Secondary Labor Markets: A Study of Seven Western Counties

This study attempts to determine key characteristics of these secondary workers in seven counties of four states, and the implications that the results of these surveys have on planning for socioeconomic impact management.Labor and Human Capital, Resource /Energy Economics and Policy,

Impacts of Energy Development on Mercer County, North Dakota

This study examines the efforts of Mercer County, North Dakota to deal with the impacts of several large-scale facilities constructed and under construction near Beulah, the county's largest city. The county has, thus far, adjusted well. The lessons of Mercer County may, therefore, be useful in planning for future growth in other communities.Resource /Energy Economics and Policy,

PROTEST BIDDERS IN CONTINGENT VALUATION

Protest bids are often excluded during analysis of contingent valuation method data. It is suggested that this procedure might introduce significant bias. Protest bids are often registered by respondents who may actually place a higher- or lower-than-average value on the commodity in question but refuse to pay on the basis of ethical or other reasons. Exclusion of protest bids may therefore bias willingness to pay (WTP) results, but the direction of bias is indeterminate a priori.Resource /Energy Economics and Policy,

Service Delivery in Rural Municipalities: Privatize, Cooperate, or Go It Alone?

Choices in production and contracting arrangements for a wide range of services were studied using data from approximately 1,000 small, mostly rural municipalities from Illinois, New Hampshire and Wisconsin. Results suggest the use of both for-profit contractors and cooperative agreements with other governments correlate negatively with population. Small municipalities are less likely to use competitive bidding processes, compare costs between production options, or report that privatization produces savings. Median income, rural geography, and ideology show statistically-significant associations with contracting choices. Respondents generally consider themselves ―satisfied‖ with services provided by contract, although satisfaction levels are lower than those associated with self-provision. Satisfaction associated with services provided by other governments is lower than satisfaction with services provided by private contractors, suggesting no tradeoff in service quality directly attributable to ―for-profit‖ contractors.privatization, municipal services, cooperation, Community/Rural/Urban Development, Public Economics,

ECONOMIC INSIGHTS INTO THE SITING PROBLEM: AN APPLICATION OF THE EXPECTED UTILITY MODEL

Despite the generally recognized need for facilities such as power plants, landfills, prisons, and medical laboratories, finding host sites has become extremely difficult. This study uses the expected utility (EU) model to explain individiuals' preferences in the hypothetical case of siting a municipal solid waste composting facility. The three principal factors which EU theory prescribes would affect the decision process- benefits of the proposed facility, losses from the facility, and the (perceived) probability of various scenarios occurring- embodied by the variables in a multinomial logit model explain a substantial amount of the variation in siting decisions.Public Economics,

Electricity deregulation and the valuation of visibility loss in wilderness areas: A research note.

Visibility in most wilderness areas in the northeastern United States has declined substantially since the 1970s. As noted by Hill et al. (2000), despite the 1977 Clean Air Act and subsequent amendments, human induced smog conditions are becoming increasingly worse. Average visibility in class I airsheds, such as the Great Gulf Wilderness in New Hampshire’s White Mountains, is now about one-third of natural conditions. A particular concern is that deregulation of electricity production could result in further degradation because consumers may switch to lower cost fossil fuel generation (Harper 2000). To the extent that this system reduces electricity costs, it may also affect firm location decisions (Halstead and Deller 1997). Yet, little is known about the extent to which consumers are likely to make tradeoffs between electric bills and reduced visibility in nearby wilderness areas. This applied research uses a contingent valuation approach in an empirical case study of consumers’ tradeoffs between cheaper electric bills and reduced visibility in New Hampshire’s White Mountains. We also examine some of the problems associated with uncertainty with this type of analysis; that is, how confident respondents are in their answers to the valuation questions. Finally, policy implications of decreased visibility due to electricity deregulation are discussed