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Host Community Compensation and Municipal Solid Waste Landfills

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Author Info

  • Cynthia Morgan
  • Kelly B. Maguire
  • Robin R. Jenkins

Abstract

Strong local opposition to the construction of solid waste landfills has become commonplace and the siting of landfills in the United States is time consuming and expensive. To ease the siting process, host compensation in exchange for permission to construct a landfill has become popular. The value and nature of host compensation varies dramatically across communities, but the reasons for this variation are relatively unexplored. We construct a national data set consisting of host fees paid by the 104 largest privately owned solid waste landfills in 1996, along with the characteristics of the landfills and the host communities. Our findings suggest that the direct participation of citizens in host fee negotiations, the community knowledge stemming from having hosted a prior landfill, and the presence of state mandates for minimum host compensation all lead to much greater amounts of host compensation. We find that the bargaining position of the landfill developer is less important, in terms of the magnitude of the effect. However we do find evidence that firms with deeper pockets are more likely to pay higher host fees. We find limited evidence that a community’s race and income level matter after accounting for factors that directly reflect citizen involvement. The analysis also indicates that landfills that accept risky wastes, such as contaminated soil or sludge, and problematic wastes, such as tires, pay higher host fees.

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File URL: http://yosemite.epa.gov/ee/epa/eed.nsf/WPNumber/2002-04/$File/2002-04.PDF
File Function: First version, 2002
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Bibliographic Info

Paper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200204.

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Length: 40 pages
Date of creation: Aug 2002
Date of revision: Aug 2002
Handle: RePEc:nev:wpaper:wp200204

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Related research

Keywords: host compensation; landfills; environmental justice;

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References

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  1. Baden, Brett M. & Coursey, Don L., 2002. "The locality of waste sites within the city of Chicago: a demographic, social, and economic analysis," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 53-93, February.
  2. Seema Arora & Timothy N. Cason, 1999. "Do Community Characteristics Influence Environmental Outcomes? Evidence from the Toxics Release Inventory," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 691-716, April.
  3. Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May.
  4. James T. Hamilton, 1993. "Politics and Social Costs: Estimating the Impact of Collective Action on Hazardous Waste Facilities," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 101-125, Spring.
  5. Ingberman Daniel E., 1995. "Siting Noxious Facilities: Are Markets Efficient?," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S20-S33, November.
  6. James T. Hamilton, 1995. "Testing for environmental racism: Prejudice, profits, political power?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 107-132.
  7. Frey, Bruno S & Oberholzer-Gee, Felix & Eichenberger, Reiner, 1996. "The Old Lady Visits Your Backyard: A Tale of Morals and Markets," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1297-1313, December.
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Citations

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Cited by:
  1. Ann Wolverton, 2009. "The Role of Demographic and Cost-Related Factors in Determining Where Plants Locate - A Tale of Two Texas Cities," NCEE Working Paper Series 200903, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jun 2009.
  2. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2010. "Waste Generation and Landfill Diversion Dynamics: Decentralised Management and Spatial Effects," Working Papers 2010.27, Fondazione Eni Enrico Mattei.
  3. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2008. "Embedding Landfill Diversion in Economic, Geographical and Policy Settings Panel based evidence from Italy," Working Papers 2008.71, Fondazione Eni Enrico Mattei.
  4. Ann Wolverton, 2008. "Effects of Socio-Economic and Input-Related Factors on Polluting Plants' Location Decisions," NCEE Working Paper Series 200808, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2008.
  5. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.
  6. Thomas C. Kinnaman, 2006. "Policy Watch: Examining the Justification for Residential Recycling," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 219-232, Fall.
  7. Francesco Nicolli, 2012. "Convergence of waste-related indicators of environmental quality in Italy," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(4), pages 383-401, October.
  8. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Working Papers 2010.77, Fondazione Eni Enrico Mattei.
  9. Massimiliano Mazzanti & Roberto Zoboli, 2008. "Waste Generation, Incineration and Landfill Diversion. De-coupling Trends, Socio-Economic Drivers and Policy Effectiveness in the EU," Working Papers 2008.94, Fondazione Eni Enrico Mattei.
  10. Kelly B. Maguire & Robin R. Jenkins, 2009. "State Hazardous and Solid Waste Taxes: Understanding Their Variability," NCEE Working Paper Series 200901, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jun 2009.
  11. Wagner, Jeffrey, 2011. "Incentivizing sustainable waste management," Ecological Economics, Elsevier, vol. 70(4), pages 585-594, February.
  12. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 103-135.
  13. Wayne B. Gray & Ronald J. Shadbegian, 2002. "‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much?," NCEE Working Paper Series 200205, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Sep 2002.
  14. Caplan, Arthur & Grijalva, Therese & Jackson-Smith, Douglas, 2007. "Using choice question formats to determine compensable values: The case of a landfill-siting process," Ecological Economics, Elsevier, vol. 60(4), pages 834-846, February.
  15. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.

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