Indicator with three values

I wanted to ask whether it can make sense to include a variable in a regression model that is coded in the following way?

• 0: something neutral

• 1: something good

The alternative of using a "good" and a "bad" dummy predictably runs into multicollinearity problems. Also, I am wondering what model would be appropiate in case I use such a variable as dependent variable? Thank you very much!

Best wishes, Felix

• 0 vs 1; that leads to $\beta \times 0 = 0$ and $\beta \times 1 = \beta$ estimates of effects for both levels,
• -1 vs 1; that leads to $\beta \times -1 = -\beta$ and $\beta \times 1 = \beta$ estimates of effects for both levels.
In your case your variable would lead to decrease by constant $-\beta$ for the "bad" level, would have no effect with the "neutral" level and would increase the predictions by constant $\beta$ for the "good" level.