# 17-086/VIII (2017-09-22)

Raymond (R.H.J.M.) Gradus, School of Business and Economics, Vrije Universiteit Amsterdam; Tinbergen Institute, The Netherlands; Elbert (E.) Dijkgraaf, Erasmus
local government, unit-based waste pricing, greener, less green, ideological motivation
JEL codes:
D72, H76,H79

This paper analyzes whether Dutch municipalities became greener between 1999 and 2014 by investigating whether they implement different unit-based pricing systems. Based on their incentive, systems are ranged from green ('weight') to less green ('volume'), or not green ('flat rate'). In one-third of the municipalities, shifts took place, with 83 percent becoming greener and 17 percent less green. Political fragmentation (measured in three ways) plays a key role in explaining these shifts. There is less evidence for political motivation. Particularly, Conservative Liberals are not in favor of unit-based pricing, whereas Social Liberals are in favor. In addition, municipalities in rural and shrinking areas are more in favor of unit-based pricing.