Economic analysis of a shared municipal solid waste management facility in a metropolitan region

Abstract

Municipal solid waste (MSW) management in dense urban areas is a challenge for municipalities, especially in developing countries, which commonly have deficient waste management. For example, the metropolitan region of Goiás State, Brazil, has 19 municipalities that dispose of about 72.5% of total MSW in unlicensed MSW final disposal facilities. Therefore, this study analysed the investment and operating costs, and revenues of a municipal solid waste management facility, projected for 20 years, shared among these 19 municipalities. The economic viability analysis, has shown that, regardless of the management facility type, MSW collection and transport are the most expensive cost components, accounting for about 60% of MSW management operating costs. For an Internal Rate of Return of 0%, anaerobic digestion is 11% more expensive (in total) than using community composting. For 2040 (last year), the monthly MSW management tariffs will vary between 3.5 and 10.8 R$·inhabitant−1·month−1, depending on the municipality. So, as the unit price of biowaste treatments lowers with waste quantities, for the municipalities with large biowaste quantities, anaerobic digestion becomes recommended for its economic attractiveness. This study can serve as a model for other municipalities in Brazil and elsewhere, helping public decision makers to establish a strategy for MSW management.