Assessing the Effects of Unit-Based Pricing on Household Waste Reduction During COVID-19 in Japan

Focusing on the COVID-19 period in Japan, this study identifies the effectiveness of a municipal unit-based pricing (UBP) system on household waste reduction through a panel data analysis targeting 770 cities for 2013–2022. It focuses on simple unit pricing (SUP) and two-tiered pricing (TTP) systems as the UBP components. As previous studies have not considered the COVID-19 period when assessing UBP, this study significantly contributes to the literature by providing new evidence. The main findings are as follows: First, SUP effectively reduced household waste even during the COVID-19 period; however, its effectiveness was slightly neutralized owing to the pandemic environment. Second, TTP also restrained household waste efficiently; however, its effect was smaller than that of SUP, and its reduction effect accelerated during the COVID-19 period (in 2020) because people became cautious about excessive waste volumes beyond the TTP criteria. The study implicates the need to expand the municipal adoption of the UBP system for household waste reduction.