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Contingent behavior and odor nuisances. The case of "Le Cortine" selection and composting plant in the Province of Siena

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  • Alice Baccheschi
  • Salvatore Bimonte
  • Silvia Ferrini

Abstract

Recent regulation on waste fees establishes the change from tax to tariff to cover the total management cost of the collection and selection services. It does not consider the external costs (externalities). This causes a distortion in the system of relative prices. In this paper, we focus on one particular type of externality: the odour due to the waste treatment and we estimate the damage produced by a selection and composting centre. In the literature, we can find different hedonic price and contingent valuation studies that aim to estimate individual willingness to pay (WTP) to improve air quality reducing contaminants with (direct or indirect) effects on human health. However, few studies focus on reversible externalities, such as odour. This study intends to enrich the literature on this area. To the authors’ knowledge, it is the first attempt to estimate the WTP to reduce odour emissions due to a selection and composting centre. Considering the peculiarity of the case study, we produce our estimates with the relatively new method of Contingent Behaviour.

Suggested Citation

  • Alice Baccheschi & Salvatore Bimonte & Silvia Ferrini, 2008. "Contingent behavior and odor nuisances. The case of "Le Cortine" selection and composting plant in the Province of Siena," Department of Economics University of Siena 542, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:542
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    References listed on IDEAS

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    4. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008. "Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 872-908, December.
    5. Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
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    More about this item

    Keywords

    Contingent Behaviour; odor nuisance; external effects.;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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