1. Managing Municipal Solid Waste Chapter 18 © 2004 Thomson Learning/South-Western

2. 2 Managing Municipal Solid Waste Municipal solid waste (MSW) – nonhazardous wastes disposed of by local communities

3. 3 Characterizing Municipal Solid Waste Observing a Trend  Despite the apparent growth in MSW generation, the development of better waste management practices has lagged behind

4. 4 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

5. 5 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

6. 6 Characterizing Municipal Solid Waste Figure 18.2 Recovery Rates (%) for Major Components of U.S. Municipal Solid Waste in 1999

7. 7 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

8. 8 The Policy Response: An Overview Federal Responsibilities  Based on the RCRA’s provisions for nonhazardous waste, the federal government must provide financial and technical assistance to states in designing and implementing their waste management plans

9. 9 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

10. 10 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

11. 11 Modeling the Market for MSW Management Services Figure 18.3 Market for Municipal Solid Waste Services

12. 12 Modeling the Market for MSW Management Services Demand for MSW Services  Demand side represents the purchasing decisions of MSW generators

13. 13 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

14. 14 Modeling the Market for MSW Management Services Figure 18.4 Modeling a Flat Fee Pricing System for MSW Services

15. 15 Modeling the Market for MSW Management Services Figure 18.5 Allocative Inefficiency in Private Markets for MSW Services: Presence of a Negative Externality

16. 16 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

17. 17 Market Approaches to MSW Policy Figure 18.6 Modeling a Waste-End Charge to Restore Efficiency in the Market for MSW Services

18. 18 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

19. 19 Market Approaches to MSW Policy Figure 18.7 Modeling a Retail Disposal Charge to Correct a Consumption Externality: Market for Household Batteries

20. 20 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