A theoretical framework for determining environmental costs, benefits, and the net welfare effects associated with hazardous waste management

Authors

1 Dept. of Environmental Engineering, University of Tehran, Faculty of Environmental Science, Tehran, Iran.

2 Dept. of Environment, Faculty of Natural Resources, University of Guilan, Sowmehsara, Iran.

3 Dept. of Rural Development, Faculty of Agricultural Sciences, University of Guilan, Rasht, Iran. *Corresponding Author's E-mail: Babak_1349t@yahoo.com

Abstract

This paper reviews and presents a theoretical model to determine the costs, benefits, and welfare effects of hazardous wastes management. According to the Iranian law, environmental costs are assigned to waste producing firms. However, in practice, due to weak enforcement programs, firms do not pay any environmental costs. Using the basic principles and logic of welfare economics, we present a micro-level model for analyzing an industry that generates waste as a by-product of its production process. Firms in the industry choose the least cost method of disposal (either legal or illegal disposal). By utilizing various figures of presented models in partial equilibrium structure we found R'1, R'2 and 3 R′ which are the net welfare effect of producing firms, the net welfare effect to firms supplying legal waste disposal services and the net welfare effect of the environmental damage, respectively. By analyzing the presented figures we concluded that government regulatory policy may ideally lower environmental costs via a subsidy program.
 
REFERENCES
Dewees, D. (1998) Instrument Choice in Environmental Policy. Econ. Inquiry. 21, 53- 71.
Environmental Protection Agency. (1998) Safer Disposal for Solid Waste: The Federal Regulation for Landfills, 37p.
Environmental Protection Agency. (2008) Experiences of Hazardous waste generators with EPA’s phase I RCRA program, Washington DC, 118 p.
Kiel, K. and Zabel, J. (2001) Estimating the Economic Benefits of cleaning up superfund sites: The Case of Woburn, Massachusetts. J. Real Estate Finance Econ. 22, 163-184.
Layard P.R.G. and Walters A.A. (2007) Micro– Economic Theory. Mc Graw Hill Book Company, New York. pp. 102-258.
Magorian, C. and Morell, D. (1999) Sitting Hazardous Waste Facilities, Ballinger, Cambridge, Massachusetts. pp. 87-198.
Menhaj, M.H. (1994) Liability Rules for Solid Waste Management: Efficiency and Equity Effects. PhD thesis, Oklahoma State University, 153 p.
Morris, JR., Phillips PS, Read AD. (1998) The UK Land Tax: an analysis of its contribution to sustainable waste management. Resour. Conserv. Recy. 20, 259-270.
Office of Technology Assessment (O.T.A), U.S. Congress. (2007) Superfund Strategy Summary, Washington DC, 58 p.
Ronald, F. and Hengartner, N. (2001) Environmental Equity and the Distribution of Toxic Release Inventory and other Environmentally Undesirable Sites in Metropolitan New York City. Environ. Ecol. Stat. 8, 32-52.
Saed, N. and Tila, P. (2009) A survey of Iranian environmental law and Regulation. Khorsandi cultural-publication Center, Tehran, Iran, 464 p.
Steven, T. and William, L. (1993) Microeconomics. 2nd Edition. Wads Warth Publishing INC, USA, 499 p.
Smith, M.A., Lynn, F.M. and Andrews. R.N.L. (1986) Economic Impacts of Hazardous Waste Facilities. Hazard Waste Hazard, 3, 195-204
Sullivan, A M. (1986) Liability Rules for Toxics Clean - Up. J. Urban Econ. 20, 191-204.
Sullivan, A M. (1997) Policy option for Toxics Disposal: Laissez- Faire, Subsidization, Enforcement. J. Environ. Econ. Manage. 14, 58-71.
Tietenberg, T. (1999) Environmental and Natural Resource Economics 3rd Edition. Scotte, Foresman and company, Gleview, Illinois, USA, 559 p.

Keywords


Dewees, D. (1998) Instrument Choice in Environmental Policy. Econ. Inquiry. 21, 53-71.

 

Environmental Protection Agency. (1998) Safer Disposal for Solid Waste: The Federal Regulation for Landfills. pp. 37.

 

Environmental Protection Agency. (2008) Experiences of Hazardous waste generators with EPA’s phase I RCRA program, Washington, D.C. pp. 118.

 

Kiel, K. and Zabel, J. (2001) Estimating the Economic Benefits of cleaning up superfund sites: The Case of Woburn, Massachusetts. J. Real Estate Finance Econ. 22, 163-184.

 

Layard P.R.G. and Walters A.A. (2007) Micro–Economic Theory. Mc Graw Hill Book Company, New York. pp. 102-258.

 

Magorian, C. and Morell, D. (1999) Sitting Hazardous Waste Facilities, Ballinger, Cambridge, Massachusetts. pp. 87-198.

 

Menhaj, M.H. (1994) Liability Rules for Solid Waste Management: Efficiency and Equity Effects. PhD thesis, Oklahoma State University. pp. 153.

 

Morris, JR., Phillips PS, Read AD. (1998) The UK Land Tax: an analysis of its contribution to sustainable waste management. Resour. Conserv. Recy. 20, 259-270.

 

Office of Technology Assessment (O.T.A), U.S. Congress. (2007) Superfund Strategy Summary, Washington, D.C. pp. 58.

 

Ronald, F. and Hengartner, N. (2001) Environmental Equity and the Distribution of Toxic Release Inventory and other Environmentally Undesirable Sites in Metropolitan New York City. Environ. Ecol. Stat. 8, 32-52.

 

Saed, N. and Tila, P. (2009) A survey of Iranian environmental law and Regulation. Khorsandi cultural-publication Center, Tehran, Iran. pp. 464.

 

Steven, T. and William, L. (1993) Microeconomics. 2nd Edition. Wads Warth Publishing INC, USA. pp. 499.

 

Smith, M.A., Lynn, F.M. and Andrews. R.N.L. (1986) Economic Impacts of Hazardous Environmental costs, benefits, and the waste management 202Waste Facilities. Hazard. Waste. Hazard. 3, 195-204

 

Sullivan, A M. (1986) Liability Rules for Toxics Clean – Up. J. Urban Econ.20, 191-204.

 

Sullivan, A M. (1997) Policy option for Toxics Disposal: Laissez- Faire, Subsidization, Enforcement. J. Environ. Econ. Manage.14,58-71.

 

Tietenberg, T. (1999) Environmental and Natural Resource Economics 3rd Edition. Scotte, Foresman and company, Gleview, Illinois, USA. pp. 559.