A Contingent Valuation Study and Benefit-Cost Analysis of the Switch to Automated Collection of Solid Waste With Single Stream Recycling in Madison, Wisconsin

Abstract

Many communities have switched to single stream recycling in the past several years. At the same time, there has also been an increase in the number of communities using an automated collection system, with these program changes often being implemented simultaneously. We conduct a double-bounded dichotomous choice contingent valuation survey to estimate consumer willingness to pay (WTP) for the combined switch to automated collection of solid waste with single stream recycling in Madison, Wisconsin. We find a mean WTP of approximately $3 per household per month, suggesting that on average, consumers perceive the new program to be beneficial. We then perform a benefit-cost analysis where the most conservative calculation yields an annual net benefit of almost $25 per household from moving to single stream recycling with automated collection.