Author(s): Peter S. Menell
Year:
Abstract:
This
Article develops a multi-tier pricing model for internalizing the social
costs of municipal solid waste and balancing transaction costs. The
Article concludes that, while comprehensive monitoring systems would be
prohibitively expensive, there are feasible economic incentive systems
that would be extremely effective in reducing the quantity and improving
the composition of the municipal solid waste stream. Moreover, the
transaction costs of implementing these systems could be kept within
reasonable bounds. Simple curbside charges, based on the volume or
weight of mixed refuse, provide strong incentives for source reduction,
separation of valuable materials, and purchasing of materials that are
reusable, recyclable, or less expensive to landfill or incinerate.
Another possible option is a highly flexible system of retail charges
implemented by entering data on disposal costs into optical scanning
cash register systems. This system would facilitate carefully tailored
adjustments to individual product prices to reflect disposal costs. If
this pricing system were combined with a curbside charge, even greater
social benefits could be reaped. Beyond the analysis of particular
policy tools, the Article also considers means whereby incentive-based
regulatory policies could be implemented within our complex federal
system encompassing diverse local communities.
Keywords:
Link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2222122