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The Cost of Reducing Municipal Solid Waste

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Author Info
Palmer, Karen () (Resources for the Future)
Walls, Margaret () (Resources for the Future)
Sigman, Hilary

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Abstract

This paper explores public policies for reduction of municipal solid waste. We parameterize a simple model of waste disposal using supply and demand elasticities from the economics literature and 1990 prices and quantities of recyclable and recycled materials. Using this model, we calculate the waste reduction in response to three public policies: (i) deposit/ refunds, (ii) advance disposal fees, and (iii) recycling subsidies. The results illustrate the effects of the three policies on source reduction and recycling of five recyclable materials that comprise 56 percent of municipal solid waste: aluminum, glass, paper, plastic, and steel. The calculated responses provide information about the cost of reducing municipal solid waste through various policies. This analysis suggests that a 7.5 percent reduction in disposal of the solid wastes in the model might have been optimal in 1990 from a benefit-cost perspective.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-96-35.

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Date of creation: 01 Sep 1996
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Handle: RePEc:rff:dpaper:dp-96-35

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  1. Gregory DeAngelo & Jeffrey Wagner, 2005. "Characterizing regulation and negligence rule uncertainty in solid waste management," Economics Bulletin, Economics Bulletin, vol. 11(1), pages 1-11. [Downloadable!]
  2. Eduardo Ley & Molly K. Macauley & Stephen W. Salant, 1996. "Spatially and Intertemporally Efficient Waste Management: The Costs of Interstate Flow Control," Public Economics 9606001, EconWPA, revised 06 May 1997. [Downloadable!]
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  3. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Takayoshi Shinkuma, 2003. "On the Second-best Policy of Household's Waste Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 77-95, January. [Downloadable!] (restricted)
  5. K. Forslind, 2007. "The economics of environmental law enforcement: end-of-life vehicles," European Journal of Law and Economics, Springer, vol. 23(3), pages 223-236, June. [Downloadable!] (restricted)
  6. Francisco J. André & Emilio Cerdá, 2005. "Gestión de residuos sólidos urbanos: Análisis económico y políticas públicas," Economic Working Papers at Centro de Estudios Andaluces E2005/23, Centro de Estudios Andaluces. [Downloadable!]
  7. Shih, Jhih-Shyang & Louis, Garrick, 2002. "A Flexible Inventory Model for Municipal Solid Waste Recycling," Discussion Papers dp-02-48, Resources For the Future. [Downloadable!]
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  8. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Thomas Eichner & Rüdiger Pethig, 1999. "Product Design and efficient Management of Recycling and Waste Treatment," Volkswirtschaftliche Diskussionsbeitraege 76-99, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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  10. Palmer, Karen & Walls, Margaret, 1999. "Extended Product Responsibility: An Economic Assessment of Alternative Policies," Discussion Papers dp-99-12, Resources For the Future. [Downloadable!]
  11. Janusz Mrozek, 2000. "Revenue Neutral Deposit/Refund Systems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(2), pages 183-193, October. [Downloadable!] (restricted)
  12. Walls, Margaret & Calcott, Paul, 2000. "Policies to Encourage Recycling and "Design for Environment": What to Do When Markets are Missing," Discussion Papers dp-00-30, Resources For the Future. [Downloadable!]
  13. Palmer, Karen & Macauley, Molly & Shih, Jhih-Shyang & Cline, Sarah & Holsinger, Heather, 2001. "Modeling the Costs and Environmental Benefits of Disposal Options for End-of-Life Electronic Equipment: The Case of Used Computer Monitors," Discussion Papers dp-01-27, Resources For the Future. [Downloadable!]
  14. Asunción Arner Güerre & Ramón Barberán Ortí & Jesús Mur Lacambra, 2003. "Las políticas públicas de fomento del reciclaje: La regeneración de aceites usados," Hacienda Pública Española, IEF, vol. 167(4), pages 33-55, December. [Downloadable!]
  15. Don Fullerton & Ann Wolverton, 1997. "The Case for a Two-Part Instrument: Presumptive Tax and Environmental Subsidy," NBER Working Papers 5993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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