Welfare Implications of Waste

Management

Medha Malviya
MSc Economics
Objective of the study
1) To make an appraisal of the various existing
viewpoints on the need and importance on waste
management in India

2) To focus on the relationship between waste

management and its impact on welfare of society

3) To establish that the welfare implications may need

not necessarily be uniform and that it can differ across
countries depending on the level of development
Methodology
• Review of available literature- Reviewing the ongoing
waste management practices along with relevant case
study.

• Analyzing the waste management policies and their

implications
 Literature Review
 L. Padma et al (2007)
• Rural waste management options are limited.
• The policies recommended:(i) village and settlement-
based rural waste management strategies and
initiatives, and (ii) village bylaws.
 Thomas C. Kinnaman and Don Fullerton (1999)
• Incineration has been most successful where land is
scarce for countries like Sweden, Germany, etc.
• A deposit or advanced disposal fee- at production or
purchase whereas a refund or subsidy to recycling for
households that recycle or to firms that purchase
recycled materials.
Chongwoo Choe and Iain Fraser (1997)
Model for household waste management policy
• When household waste reduction effort (not significant)
the first-best optimum can be achieved by using various
combinations of an environmental tax on the firm and a
waste collection charge.

• In the presence of household waste reduction effort a

second best-optimum is achieved because due to the
higher the waste collection charge leads to more
incentives for the household for waste reduction as well
as for illegal waste disposal.

• Community involvement is required for monitoring and

enforcement of the policies.
R. Kerry Turner, J. Powell and A. Craighill
(1998)
• Focus on role, efficiency and implementation
of “Green Taxes”.

• Economic instruments can provide efficiency

gains but in a political economy settings the
efficiency gains might reduce due to multiple
and conflicting policy objectives.
Case Study- Kampala City
• Objective of the study- To determine the economic
value of an improvement in environmental quality
due to an alternative household garbage collection
and selection system for the households of Bugoloobi
flats a suburb of Kampala City.
• Methodology- Contingent Valuation Method
• Results- Consistent with economic theory
a) Kampala City Council (KCC) is inefficient
b) Private service providers- Relatively Efficient
c) High WTP, improvement in welfare, increase in
income
 Analysis of Waste Management polices
 European Union (EU)
Approach to waste management is based on
three principles:
• Waste prevention
• Recycling and reuse
• Improving final disposal and monitoring
 The Landfill Directive (April 1999) (Directive
1999/31/EC )- Prevent or reduce as far as possible
negative effects on the environment from the
land-filling of waste, by introducing stringent
technical requirements for waste and landfills.
• In April 2006, Directive 2006/12/EC - ensure that
waste is recovered or disposed of without
endangering human health and without using
processes or methods which could harm the
environment and shall take appropriate measures to
encourage prevention and recovery- re-appealed by
Directive 2008/98/EC with effect from 12 December
2010

• Strategies focusing on:

Prevention and recycling of waste
Limit waste production
Source: Euro Stat
• Municipal solid waste (MSW) generation per capita
in the EU had been increasing until
recently, but now seems to have stabilised
• Slight increase in 2002, due to increase in the
population size
• Stabilization- Due to either change in consumption
patterns or improved waste management techniques
Source: Eurostat
• Focus on minimising waste
• Recycling- Some countries have very high or high
recycling levels on all waste streams.
• Relation between Economic Growth and Waste
Generation
• Waste generation is still increasing proportionally with
income, and economic and environmental costs
associated to land-filling are also increasing.
• EU has on its agenda that waste generation should
decouple (no waste growth) from economic growth
within the EU in the future.
• Decoupling- linked to the main driving forces behind
waste generation: technical change, economic growth
and household consumption.
Policies undertaken by member states-
• Germany
• United Kingdom- Waste Strategy 2007
Emphasis is on recycling and reduction of waste at the
source level
Brazil
• Population is roughly the same number as the combined
populations of France, the United Kingdom, and Italy.
• Relatively poor country, with an average annual income
of only $3,570 per year and a poverty rate of 22%.
• Much of the population lacks standard amenities
• Sao Paolo- 35% of sewage is discharged untreated, 76%
of municipal solid waste (MSW) waste is disposed off in
open dumps, and 10% is disposed of in uncontrolled
landfills. Only 13% is placed in controlled landfills, and
less than 2% is treated by composting, recycling, or
incineration.
• The national solid waste policy (PNRS, in the
Portuguese abbreviation) will be implemented-
approved on March 10, 2010.
• Emphasis on recycling
• Become equal the EU in relation to legislation
concerning the solid waste.
• Focus on PNRS- Protection of public health and
environmental quality, as well as at the adoption,
development and improvement of clean technologies
to minimize environmental impacts, and at the
reduction of the volume of hazardous waste, amongst
other actions.
Waste-to-Energy options for Brazil
• Not considered as an option
• Political, Economical and Technical barriers
• Recommendations- Municipal Solid Waste requires
extensive changes before being able to benefit from
WTE technologies, starting by collecting, assessing and
spreading of reliable data and information. Institutional
and legal reforms, R&D, training and public education
programs, financing and funding mechanisms,
modernization of technical, managerial and operational
structures are also in order.
India
• In 2000, the MoEF introduced its Municipal Solid
Waste Management Rules
• The MNES initiated the ‘National Programme on
Energy Recovery from Urban Wastes’ in 1995 to
develop the waste-to-energy market
• Major problem- High Costs
• Recycling- New concept
• Informal sector plays a large role
• Low income- High organic content in waste
• W-T-E options for India
• Rapid urbanisation leading to increase in waste
generated
• Increase in income- Increase in standard of living
• Illegal dumping- a major practice
• Unhygienic conditions
• Health problems
• Increase in economic growth leading to rapid increase
in waste generation
Problems faced by developing countries:
• IPR’s- Not properly defined
• High costs
• No reduction at source level
• Limited financial resources
• Technical constraints
• Legal Constraints
• Social Constraints
• Institutional Constraints
• Economic Constraints
• Environmentally unsound waste management
practices
Results:
• Capacity development, changing role of stakeholders,
and appropriate institutional settings
• Capacity development from the perspective of enabling
factors for governmental intervention and national and
regional industrial development for recycling
• Need for possible policy responses and international
policy harmonisation to prevent a loop-hole of
domestic recycling mechanisms due to the expanding
international material flow
• Community-Level participation
• Reduction in tarrifs
• Decentralisation
• Strengthening of legal framework
• Properly define PR’s
• Role of private sector, ngo’s, etc.
• PPP
• Defining clear roles at each level
• Education and awareness at the local level
• Supporting Strategic Planning and Follow-up
Implementation
• Developing Self-financing Schemes
• An alternative waste management policy that
concentrates primarily on reducing hazardous wastes
could be argued for, when focusing on the environmental
costs of waste generation for (no waste growth)
• To reduce waste intensities linked to firms, the policy
instruments introduced must bring about an introduction
of waste preventing production techniques.
• House-to-house collection of MSW should be
organized through methods like collection on regular
pre-informed timing and scheduling.
• Organizing the informal sector and promoting micro-
enterprises are an effective way of extending
affordable services.
• Landfilling restricted to non-biodegradable, inert
waste and other waste that are not suitable either for
recycling or for biological processing.
References
• http://europa.eu/ Accessed on 12th November, 2010
• http://www.environment-agency.gov.uk/business/regulation/31867.aspx
• http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?
uri=CELEX:31999L0031:EN:HTML
• www.bmu.de/english/waste_management/doc/3432.php -All accessed on 12th
November, 2010
• ww2.defra.gov.uk - Accessed on 9th November, 2010
• Final Report to Directorate General Environment., European Commission Financing
and Incentive Schemes for Municipal Waste Management. Eunomia Research &
Consulting Ltd
• http://eur-lex.europa.eu Accessed on 18th November, 2010
• www.bdlaw.com/news-834.html Accessed on 8th November, 2010
• Coehlo, S.T. et al., Barriers to Implementation of Waste-to-Energy (WTE)
Technologies in Brazil,
• Zuan, D. et al., Improving Municipal Solid Waste Management in India- A
Sourcebook for Policy Makers and Practitioners., World Bank Institute
• B. Perinaz., 2005. Capacity-to-Act in India’s Solid Waste Management and Waste-
to- Energy Industries
• Eurostat
• Fisher, C., and. Davidson, C.; Europe as a Recycling Society: The
European Recycling Map.; European Topic Centre on Sustainable
Consumption and Production
• Hall, D., Waste management in Europe: framework, trends and issues