Quasi-Experimental Evidence on the Impact of State Recycling and Deposit Laws: Household Recycling Following Interstate Moves

This article estimates the effects on recycling behavior of state recycling laws and deposit laws based on changes in household recycling before and after interstate moves. Estimates from a national panel dataset of 1,498 households who moved between states provide a quasi-experimental test otherwise not possible given long-term stability of such laws in any state. Compared to national average recycling rates, moves to states with deposits for beverage containers increased the number of material types recycled by 41%. More stringent recycling laws are also effective, but they have a smaller impact. Recycling laws boosted the number of materials recycled by 9%, with the largest effect being the 17% increase in the recycling rate for glass. Moves from states with deposit laws to states without such laws decreased the number of materials recycled by 13%. Shifts out of states with stringent laws only had statistically significant effects for plastic, which exhibited a 12% decrease after such a move (JEL K32, Q53, Q30).

Duke Scholars

Author Joel C. Huber Fuqua School of Business