An econometric analysis of regional differences in household waste collection: The case of plastic packaging waste in Sweden

The Swedish producer responsibility ordinance mandates producers to collect and recycle packaging materials. This paper investigates the main determinants of collection rates of household plastic packaging waste in Swedish municipalities. This is done by the use of a regression analysis based on cross‐sectional data for 252 Swedish municipalities. The results suggest that local policies, geographic/demographic variables, socio‐economic factors and environmental preferences all help explain inter‐municipality collection rates. For instance, the collection rate appears to be positively affected by increases in the unemployment rate, the share of private houses, and the presence of immigrants (unless newly arrived) in the municipality. The impacts of distance to recycling industry, urbanization rate and population density on collection outcomes turn out, though, to be both statistically and economically insignificant. A reasonable explanation for this is that the monetary compensation from the material companies to the collection entrepreneurs vary depending on region and is typically higher in high‐cost regions. This implies that the plastic packaging collection in Sweden may be cost ineffective. Finally, the analysis also shows that municipalities that employ weight‐based waste management fees generally experience higher collection rates than those municipalities in which flat and/or volume‐based fees are used.