This paper estimates the effect of introducing unit-pricing for municipal domestic waste collection and disposal in Christchurch. The price effect is shown in a demand model estimation using data collected in a contingent valuation survey of Christchurch households conducted in 2003. The results show a small but significant price effect. Households on higher incomes exhibit a larger price effect than do those on low incomes. Private service is indicated as the most preferred option for

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... ing away from municipal service, followed closely by composting, compaction, and recycling. The number of households participating in substitute activities that divert waste from landfill is shown to increase.