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Relationship between health status and recycling rates: Evidence from Great Britain

Giovanis, Eleftherios and Ozdamar, Oznur (2014): Relationship between health status and recycling rates: Evidence from Great Britain.

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Abstract

This study explores the relationship between self-reported health status and recycling rates in Great Britain. The estimates are based on the data from the British Household Panel Survey (BHPS). The effects of recycling rates on individuals’ health status with a scale from 1- excellent- to 5-very poor- are estimated and their monetary values are calculated. In addition, the non-movers sample is considered in order to reduce endogeneity. Three approaches are followed. The first approach refers to the panel Probit-OLS, while the second approach is the ordered Probit model with random effects. The third approach refers to a dynamic panel regression estimated with the system Generalized Methods of Moments (GMM). The average marginal willingness-to-pay (MWTP) for a one per cent increase in recycling rates ranges between is £470-£800 per year. Moreover, other determinants play significant role on health status such as education, marital status, age, job status, age and weather conditions among others. The originality of this paper is that the relationship between self-reported health status and recycling rates using micro-level panel data is explored. Moreover, the reression analysis controls for various demographic, regional and meteorological factors. Finally, this is the first study presenting three different panel estimates to deal with the potential endogeneity of the pollution measure which is derived from recycling. Using fixed effects the regional time invariant characteristics are controlled, while the dynamic model allows controlling for time varying unobservables.

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