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Waste Generation and Recycling

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  • Ida Ferrara

Abstract

There are two serious failures that arise in the management of solid waste. The first relates to the existence of negative externalities in the individual decision-making over waste generation and disposal. When individuals decide on how much to consume and what to consume, they do not take into account how much waste they produce. Because the external costs of waste generation (such as air and water pollution) are ignored by individuals, more waste is produced and disposed of than is socially optimal. The second serious failure relates to the ways in which waste collection services are typically financed. More often than not, individuals pay for waste disposal in lump sums through general taxes or flat payments to local governments or private collectors. Hence, waste disposal costs are not fully reflected in the prices households face at the margin. Even if these flat charges included both the private and external costs of waste production and disposal, individuals would still face zero prices for additional waste produced, and would thus tend to produce (and dispose of) more waste than if they were to pay for the additional garbage according to its social marginal cost.

Suggested Citation

  • Ida Ferrara, 2008. "Waste Generation and Recycling," OECD Journal: General Papers, OECD Publishing, vol. 2008(2), pages 19-58.
    • Handle: RePEc:oec:packab:5kz82v850pjg
    DOI: 10.1787/gen_papers-v2008-art10-en
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    Cited by:

    1. Takehiro Usui & Kenji Takeuchi, 2014. "Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 245-271, June.
    2. Jacoba M. M. Viljoen & Catherina J. Schenck & Liza Volschenk & Phillip F. Blaauw & Lizette Grobler, 2021. "Household Waste Management Practices and Challenges in a Rural Remote Town in the Hantam Municipality in the Northern Cape, South Africa," Sustainability, MDPI, vol. 13(11), pages 1-24, May.
    3. Yanmin He & Hideki Kitagawa & YeeKeong Choy & Xin Kou & Peii Tsai, 2020. "What Affects Chinese Households’ Behavior in Sorting Solid Waste? A Case Study from Shanghai, Shenyang, and Chengdu," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    4. Gionata Castaldi & Grazia Cecere & Mariangela Zoli, 2021. "“Smoke on the beach”: on the use of economic vs behavioral policies to reduce environmental pollution by cigarette littering," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1025-1048, October.
    5. Schoot Uiterkamp, Bob Jan & Azadi, Hossein & Ho, Peter, 2011. "Sustainable recycling model: A comparative analysis between India and Tanzania," Resources, Conservation & Recycling, Elsevier, vol. 55(3), pages 344-355.
    6. Anupama Singh & Papia Raj, 2019. "Sustainable recycling model for municipal solid waste in Patna," Energy & Environment, , vol. 30(2), pages 212-234, March.
    7. Loris Alexander Manni & Hens A. C. Runhaar, 2014. "The Social Efficiency Of Pay-As-You-Throw Schemes For Municipal Solid Waste Reduction: A Cost-Benefit Analysis Of Four Financial Incentive Schemes Applied In Switzerland," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-32.
    8. Cecilia E. Muñoz-Cadena & Pedro Lina-Manjarrez & Irma Estrada-Izquierdo & Eva Ramón-Gallegos, 2012. "An Approach to Litter Generation and Littering Practices in a Mexico City Neighborhood," Sustainability, MDPI, vol. 4(8), pages 1-22, August.

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