  Using machine learning methods in a quasi-experimental setting, I study the
heterogeneous effects of introducing waste prices - unit prices on household
unsorted waste disposal on - waste demands, municipal costs and pollution.
Using a unique panel of Italian municipalities with large variation in prices
and observables, I show that waste demands are nonlinear. I find evidence of
constant elasticities at low prices, and increasing elasticities at high prices
driven by income effects and waste habits before policy. The policy reduces
waste management costs and pollution in all municipalities after three years of
adoption, when prices cause significant waste avoidance.
