An econometric analysis of the recycling of containers within the Swedish deposit system

Abstract: The level of recycling of PET bottles and aluminium cans within the container deposit system varies greatly between different municipalities in Sweden. By regressing a cross-section of average municipal deposit data for 2009 and 2010 on a range of economic, demographic and normative characteristics of the municipalities, we attempt to investigate these differences and quantify the factors hypothesised to affect the recycling rate. Our results show that age, education and infrastructure play important roles when determining the recycling rate and that controlling for tourism, consumption and cross-border trade is imperative when performing a study of this type. In contrast to our expectations, the direct effects of the monetary incentive of the deposit system as well as those of normative factors are indiscernible and further qualitative research with regard to these factors is recommended. In order to increase recycling rates we suggest policy makers to further facilitate recycling using infrastructural means, as well as to adopt measures to aid in the collection of containers leaving Sweden as a result of cross-border sales. We also wish to initiate a debate concerning the effectiveness of the current structure of the monetary incentive used in the container deposit system.