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 substituting 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.

Pre-print copy of an article published in 2005 in the New Zealand Economic Papers, 39(1), 83-103.