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

Lookup NU author(s): Dr Luca Panzone, Dr Francisco ArealORCiD



This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).


© 2021 Elsevier LtdThe 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.

Publication metadata

Author(s): Panzone L, Ulph A, Areal F, Grippo V

Publication type: Article

Publication status: Published

Journal: Waste Management

Year: 2021

Volume: 129

Pages: 95-110

Online publication date: 26/05/2021

Acceptance date: 27/04/2021

Date deposited: 15/06/2021

ISSN (print): 0956-053X

ISSN (electronic): 1879-2456

Publisher: Elsevier Ltd


DOI: 10.1016/j.wasman.2021.04.054


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