TI 2017-086/VIII Tinbergen Institute Discussion Paper Dutch Municipalities are Becoming Greener: Some Political and Institutional Explanations Raymond (R.H.J.M.) Gradus1 Elbert (E.) Dijkgraaf2 1: School of Business and Economics, Vrije Universiteit Amsterdam; Tinbergen Institute, The Netherlands 2: Erasmus Tinbergen Institute is the graduate school and research institute in economics of Erasmus University Rotterdam, the University of Amsterdam and VU University Amsterdam. Contact:
[email protected] More TI discussion papers can be downloaded at the Tinbergen Site Tinbergen Institute has two locations: Tinbergen Institute Amsterdam Gustav Mahlerplein 117 1082 MS Amsterdam The Netherlands Tel.: +31(0)20 598 4580 Tinbergen Institute Rotterdam Burg. Oudlaan 50 3062 PA Rotterdam The Netherlands Tel.: +31(0)10 408 8900 Dutch municipalities are becoming greener: some political and institutional explanations Raymond Gradus1 and Elbert Dijkgraaf2 Abstract: This paper analyzes whether Dutch municipalities have become greener between 1999 and 2014 by investigating whether they implement different unit-based pricing systems. Based on their incentive, systems are ranged from green (‘weight’) to less green (‘volume’) or no green (‘flat rate’). In one third of the municipalities, shifts took place, with 83 percent becoming greener and 17 percent less greener. Political fragmentation (measured in three ways) plays a key role in explaining these shifts. There is less evidence for political motivation. Particularly, conservative liberals are not in favor of unit-based pricing, whereas social liberals are in favor. In addition, municipalities in rural and shrinking areas are more in favor of unit-based pricing as well Keywords: local government; unit-based waste pricing; (less) greener; ideological motivation 1 Introduction In the Netherlands, Dutch municipalities are responsible for waste collection and separation (Dijkgraaf and Gradus, 2014).