Munich Personal RePEc Archive

Impact of recycling policies on plastic waste aimed at municipalities: Evidence from Japan

Ishimura, Yuichi (2021): Impact of recycling policies on plastic waste aimed at municipalities: Evidence from Japan.

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Abstract

This study investigates the impact of the central government's policy designed to encourage municipalities to recycle plastic waste in Japan. Using an instrumental variable approach, we examine whether the Containers and Packaging Recycling Law (CPRL), which includes policies such as subsidising recycling for municipalities and providing municipalities with recyclers, increases the volume of plastic waste recycling in these municipalities. The results show that CPRL increases the recycling volume of plastic packaging waste, post collection, by approximately 3.1–3.9 kg per capita and that of plastic bottles by 0.4–0.5 kg per capita. We also find evidence that these estimated impacts of CPRL are larger than those of recycling policies that target inhabitants such as unit-based pricing and door-to-door collection. In contrast to previous studies, our results suggest that, in addition to policies for promoting recycling behaviour among inhabitants, policies designed to encourage municipalities play an important role in increasing the volume of plastic recycling.

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