Abstract

Purpose: This paper aims to introduce an economic instrument called Theory of Pollution Credit Certificates in the management of municipal solid waste in Brazil, in order to create opportunities to achieve the goal established in the above mentioned policy at lowest possible social costs. Methodology/Approach: The methodology adopted has as a starting point the “constructo” of a scenario in which a city comprised of five brazilian districts produces its urban solid waste made up of 50% organic material. In the proposed scenario, similar to what happens in practice, a fee for collection and treatment of organic material would be charged for two different situations. Findings: The result showed that the use of Pollution Credit Certificates Theory has a better cost-effectiveness for solid waste management because it allows reaching the environmental goal at a lower cost to society. Research Limitation/Implication: Subjectivity of the analysis, due to the “constructo” proposition in the studies. Originality/Value of paper: From the results obtained, we inferred that the use of the Pollution Certificates Theory for the management of brazilian municipal solid waste benefits from economies of scale as it allows in the scenario determined, that districts sell their spaces at the landfill and parallel to this, to promote the practice of composting organic waste in the municipality.

Highlights

  • Solid waste management is a challenge for present and future generations

  • The purpose of this study is to evaluate the environmental and economic efficiency of a urban solid waste management system in a municipality through a comparison of total costs to achieve an environmental goal, reducing the destination of organic waste to landfill where each district of the city should focus on fulfilling that goal and achieving the total costs obtained when a system of pollution credits certificates is used whereby the reduction is not necessarily unitary allowing the exchange of organic waste

  • We considered that the districts would have the collection and disposal of its organic waste regulated by the government so that only 30% of this waste could be destined for landfill with the remainder sent for composting in districts geared to both

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Summary

Introduction

The option of not generating waste will always be the ideal, but in the current consumerist model, the optimum becomes the attempt to mitigate environmental impacts by adding regulatory and economic instruments to maximize the welfare of society at lower environmental costs (Gupta, Yadav and Kumar, 2015; Johari et al, 2014; Allesch and Brunner, 2014; Barbosa, Oliveira and Santos, 2018; Santos, Rebelo and Santos, 2017; Bravi et al, 2020). The purpose of this study is to evaluate the environmental and economic efficiency of a urban solid waste management system in a municipality through a comparison of total costs to achieve an environmental goal, reducing the destination of organic waste to landfill where each district of the city should focus on fulfilling that goal and achieving the total costs obtained when a system of pollution credits certificates is used whereby the reduction is not necessarily unitary (by district) allowing the exchange of organic waste. A strategy to develop the study in 5 district-city was organized and a representative resident’s association was created

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