Why Don't You Recycle? a Study on the Determinants of Recyclers' Financial Sustainability: The Case of the State of California
*Names in bold indicate Presenter
Through the Beverage Container Recycle Program(BCRP), the certified recyclers have two major sources to make a profit. One relies on the BCRF fund from the California Department of Resources Recycling and Recovery (CalRecycle), and the other source is to sell recycled beverage containers to processors. Using the time series model, this paper examines whether various measures of the policy or market variables have a significant effect on keeping the recyclers’ financial sustainability in recent years. Furthermore, we would like to compare which source had been more associated with the sustainability of recyclers.
This paper characterizes policy variables into two types — California Redemption Value (CRV) and Local Assistance (public education, grant, incentive, etc). Also, this paper considers market variables as the price of aluminum, glass, and plastic. The recyclers’ sustainability data was collected from the California Department of Resources Recycling and Recovery (CalRecycle) and transformed into the number of existing recyclers.
We expect the result will show that the increase in the price of aluminum, glass, and plastic had a positive effect on the recyclers’ sustainability. On the other hand, the decrease on CRV and local assistance such as government grant, incentives had a negative effect on the recyclers’ sustainability. Also, we believe that the increase in minimum wage had a negative effect on the recyclers’ sustainability. Lastly, we anticipate the result will show that the decrease on the BCRF fund had more negative effect than the market values did.