The Economics of Household Solid Waste Generation and Disposal

Abstract

We develop a household production model of waste management that explicitly incorporates many of the technical and behavioral elements germane to current regulatory and non-regulatory solid waste policy initiatives. Examination of first-order conditions shows the interaction among household preferences, these production options, and external prices and fees. A simplified simulation of our model illustrates these relationships, showing that household response elasticities can vary widely over common price ranges and that relatively large household welfare gains may be obtained by adopting curbside recycling and unit pricing programs.