Chapter 18

Managing Municipal Solid Waste

2004 Thomson Learning/South-Western

Managing Municipal Solid Waste

Municipal solid waste (MSW) nonhazardous wastes disposed of by local communities

Characterizing Municipal Solid Waste

Observing a Trend
Despite the apparent growth in MSW generation, the development of better waste management practices has lagged behind

Characterizing Municipal Solid Waste

Composition of MSW in the United States
Product groups categories in the MSW stream identified as durable goods, nondurable goods, containers and packaging, and other wastes Materials groups categories in the MSW stream identified as paper and paperboard, yard trimmings, glass, metals, plastics, textiles, rubber and leather, wood, and other miscellaneous wastes

Characterizing Municipal Solid Waste

International Comparisons
Generation Major industrialized nations are at the upper end of MSW generation rates Recycling Rates There is considerable variability in recycling rates across nations

Characterizing Municipal Solid Waste

Figure 18.2 Recovery Rates (%) for Major Components of U.S. Municipal Solid Waste in 1999

The Policy Response: An Overview

States Responsibilities
According to the RCRA, states are to develop their own waste management plans, but these must meet certain federal requirements

The Policy Response: An Overview

Federal Responsibilities
Based on the RCRAs provisions for nonhazardous waste, the federal government must provide financial and technical assistance to states in designing and implementing their waste management plans

The Policy Response: An Overview

The Current Policy Direction
Integrated waste management system an EPA initiative to guide state MSW plans that promotes using source reduction, recycling, combustion, and land disposal

Modeling the Market for MSW Management Services

Supply of MSW Services
Supply side of MSW services market represents the production decisions of firms under contract with cities and towns Tipping fees prices charged for disposing of wastes in a facility such as a landfill

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Modeling the Market for MSW Management Services

Figure 18.3 Market for Municipal Solid Waste Services

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Modeling the Market for MSW Management Services

Demand for MSW Services
Demand side represents the purchasing decisions of MSW generators

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Modeling the Market for MSW Management Services

Resource Misallocation in the Market for MSW Services
Flat Fee Pricing of MSW Services Fixed fee or flat fee pricing system pricing MSW services independent of the quantity of waste generated Negative Externalities

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Modeling the Market for MSW Management Services

Figure 18.4 Modeling a Flat Fee Pricing System for MSW Services

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Modeling the Market for MSW Management Services

Figure 18.5 Allocative Inefficiency in Private Markets for MSW Services: Presence of a Negative Externality

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Market Approaches to MSW Policy

Back-End or Waste-End Charges a fee implemented at the time of disposal based on the quantity of waste generated
Unit pricing scheme a common designation for the use of a waste end charge Flat rate pricing a unit pricing scheme that charges the same price for each additional unit of waste Variable rate pricing a unit pricing scheme that charges a different price for each additional unit of waste Bag-and-tag approach a unit pricing scheme implemented by selling tags to be applied to waste receptacles of various sizes
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Market Approaches to MSW Policy

Figure 18.6 Modeling a Waste-End Charge to Restore Efficiency in the Market for MSW Services

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Market Approaches to MSW Policy

Front-End or Retail Disposal Charges a fee levied on a product as the point of sale designed to encourage source reduction

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Market Approaches to MSW Policy

Figure 18.7 Modeling a Retail Disposal Charge to Correct a Consumption Externality: Market for Household Batteries

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Market Approaches to MSW Policy

Deposit/Refund Systems a market instrument that imposes an upfront charge to pay for potential damages and refunds it for returning a product for proper disposal or recycling

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