Relationship between health status and recycling rates: evidence from Great Britain

Publication type

Research Paper


Publication date

January 15, 2015


study explores the relationship between self-reported health status and
recycling rates in Great Britain. The estimates are based on the data
from the British Household Panel Survey (BHPS). The effects of recycling
rates on individuals’ health status with a scale from 1-excellent- to
5-very poor -- are estimated and their monetary values are calculated.
In addition, the non-movers sample is considered in order to reduce
endogeneity. Three approaches are followed. The first approach refers to
the panel Probit-OLS, while the second approach is the ordered Probit
model with random effects. The third approach refers to a dynamic panel
regression estimated with the system Generalized Methods of Moments
(GMM). The average marginal willingness-to-pay (MWTP) for a one per cent
increase in recycling rates ranges between is £470-£800 per year.
Moreover, other determinants play significant role on health status such
as education, marital status, age, job status, age and weather
conditions among others. The originality of this paper is that the
relationship between self-reported health status and recycling rates
using micro-level panel data is explored. Moreover, the reression
analysis controls for various demographic, regional and meteorological
factors. Finally, this is the first study presenting three different
panel estimates to deal with the potential endogeneity of the pollution
measure which is derived from recycling. Using fixed effects the
regional time invariant characteristics are controlled, while the
dynamic model allows controlling for time varying unobservables.

Published in

Journal of Environmental Economics and Policy



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