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Economics of the Generation and Management of Municipal Solid Waste

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  • David N. Beede
  • David E. Bloom

Abstract

This paper examines the generation and management of solid waste (MSW) through the lens of economics. We estimate that the global burden of MSW amounted to 1.3 billion metric tons in 1990, or 0.67 kilograms of waste per person per day. Industrial countries account for a disproportionate share of world MSW relative to their share of world population, while developing countries account for a disproportionate share of the world's MSW relative to their share of world income. Cross-country and time-series analyses reveal that MSW generation is positively associated but inelastic with respect to per capita income, and positively associated and unit elastic with respect to population size. Practices for collecting, processing, and disposing of MSW vary widely across countries in accord with the nature of the waste stream and key features of the environmental and economic context. However the least efficient practices tend to be found in developing countries, where MSW poses serious environmental quality and public health threats. Although considerable evidence indicates that the generation and management of MSW is sensitive to income and price variables, natural incentives to overuse common property and the presence of intergenerational externalities both suggest that private economic behavior will not yield socially optimal outcomes in this area. Community intervention may thereby promote the social good, with evidence accumulating that favors arrangements involving the of private firms. The cost of MSW management is likely to grow faster than the pace of urbanization if urbanization outpaces the development of transportation infrastructures. Our calculations also suggest that improvements in the handling of hazardous MSW will be far less expensive in discounted terms than undoing in the future the damage being caused by current practices.

Suggested Citation

  • David N. Beede & David E. Bloom, 1995. "Economics of the Generation and Management of Municipal Solid Waste," NBER Working Papers 5116, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:5116
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    Cited by:

    1. Agovino, Massimiliano & Musella, Gaetano, 2020. "Separate waste collection in mountain municipalities. A case study in Campania," Land Use Policy, Elsevier, vol. 91(C).
    2. Kofi Otumawu-Apreku, 2020. "Solid Waste Management: A Socio-Economic Perspective of Urban and Peri-Urban Communities in Honiara," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 25(4), pages 180-192, September.
    3. Rayan Baalbaki & Walid Marrouch, 2020. "Is there a garbage Kuznets curve? Evidence from OECD countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1049-1055.
    4. Walsh, E. & Babakina, O. & Pennock, A. & Shi, H. & Chi, Y. & Wang, T. & Graedel, T.E., 2006. "Quantitative guidelines for urban sustainability," Technology in Society, Elsevier, vol. 28(1), pages 45-61.
    5. Francisco André & Francisco Velasco & Luis Gonzalez-Abril, 2009. "Intertemporal and spatial location of disposal facilities," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(1), pages 23-49, March.
    6. Francesco Colelli & Edoardo Croci, 2021. "Assessment of environmental and economic benefits of packaging waste system in Italy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(1), pages 37-58.
    7. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
    8. Ludovic Fontaine & Dominique Morau & Jean-Philippe Praene, 2022. "Analysis and Estimation of Short Term Residual Household Waste Production: Case Study Reunion Island," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    9. Meylan, Grégoire & Seidl, Roman & Spoerri, Andy, 2013. "Transitions of municipal solid waste management. Part I: Scenarios of Swiss waste glass-packaging disposal," Resources, Conservation & Recycling, Elsevier, vol. 74(C), pages 8-19.
    10. Sukanya Das & Ekin Birol & Rabindra N. Bhattacharya, 2010. "Informing Efficient Solid Waste Management to Improve Local Environmental Quality and Public Health in West Bengal, India," Chapters, in: Jeff Bennett & Ekin Birol (ed.), Choice Experiments in Developing Countries, chapter 10, Edward Elgar Publishing.
    11. Francisco André & Emilio Cerdá, 2004. "Landfill Construction and Capacity Expansion," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(4), pages 409-434, August.
    12. van Beukering, Pieter J. H. & Bouman, Mathijs N., 2001. "Empirical Evidence on Recycling and Trade of Paper and Lead in Developed and Developing Countries," World Development, Elsevier, vol. 29(10), pages 1717-1737, October.
    13. Huhtala, Anni, 1999. "Optimizing production technology choices: conventional production vs. recycling," Resource and Energy Economics, Elsevier, vol. 21(1), pages 1-18, January.
    14. 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.
    15. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2019. "The effect of environmental attitudes and policies on separate waste collection: the case of Insular Italy," Letters in Spatial and Resource Sciences, Springer, vol. 12(1), pages 63-85, April.

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