Issues in the Design of Recycling Policy: the Case of Old Newspapers

This study investigates key issues in the design of policy to promote recycling of old newspaper (ONP). Empirical evidence that policies to increase supply will not give rise to a large increase in ONP recycling is presented. Also, questions in the design of alternative policy measures are addressed first, by calculating baseline recycling rates for the U.S. newsprint industry. It is found that, all things remaining the same, the newsprint industry will reach a recycling rate of about 40% by the year 2000. This suggests that the legislatively-determined recycling targets are often insufficient to induce levels of ONP recycling beyond those that would occur in the absence of government intervention. This study also includes analysis of other factors that influence the rate of ONP recycling in order to pinpoint the variables that will, if targeted by policy, lead to the largest increase in ONP recycling.