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Costs and benefits of waste soils removal

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  • Becker, Nir
  • Kimhi, Ayal
  • Argaman, Eli

Abstract

Piles of soil excavated from construction sites become a problem when they are left on site for several reasons. For example, they are exposed to wind and water erosion and constitute an environmental nuisance by disturbing the natural landscape. Thus, they create an external cost. In Israel, it is illegal to leave such piles after the project ends. The aim of this paper is to test the efficiency of this mandatory policy. We estimated the benefit of transferring such waste soil to designated landfills through Contingent Valuation (CV) which assesses people’s willingness to pay for the removal of the nuisance. We then compared it to the removal cost. To estimate these costs we used linear programming to find the minimum cost of transporting the soil to a set of designated landfills. Our results indicate an annual net benefit of ILS 4.7 million (about USD 1.34 million). This translates into a Benefit-Cost-Ratio of 1.058, which is not significantly different from 1 based on the confidence interval for willingness to pay. Net benefit is also sensitive to assumptions regarding transportation cost.

Suggested Citation

  • Becker, Nir & Kimhi, Ayal & Argaman, Eli, 2020. "Costs and benefits of waste soils removal," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837720302398
    DOI: 10.1016/j.landusepol.2020.104877
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    More about this item

    Keywords

    Contingent valuation; Excavated soil; Transportation costs; Israel; Cost-benefit analysis;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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