The demand for solid waste disposal

• Published in: Land economics Vol. 71; no. 1; pp. 57 - 64
• Main Authors: Strathman, J.G. (Portland State University.), Rufolo, A.M, Mildner, G.C.S
• Format: Journal Article
• Language: English
• Published: Chicago University of Wisconsin Press 01.02.1995
• Subjects: ANALISIS MARGINAL; ANALYSE MARGINALE; Community services; Cost efficiency; Deadweight loss; DEMAND FUNCTIONS; Economic models; EFFICACITE; EFFICIENCY; EFICACIA; Elasticity of demand; ELIMINACION DE DESECHOS; ELIMINATION DES DECHETS; Fees; FONCTION DE DEMANDE; FUNCIONES DE LA DEMANDA; LAND; Land economics; Landfill; Landfills; LOSSES; MARGINAL ANALYSIS; Marginal cost pricing; Marginal costs; Municipal finance; MUNICIPAL REFUSE DISPOSAL; Municipal solid waste; OREGON; PERDIDAS; PERTE; POLITICA DE PRECIOS; POLITIQUE DES PRIX; portland, oregon; PRICE POLICIES; Prices; Pricing; Public policy; Recycling; Solid wastes; Statistical analysis; Supply & demand; TERRE; TIERRAS; URBAN AREAS; volume-based pricing; WASTE DISPOSAL; Waste generation; Waste management; weight-based pricing; ZONAS URBANAS; ZONE URBAINE; United States > US
• ISSN: 0023-7639; 1543-8325
• DOI: 10.2307/3146758

In this paper we estimate the elasticity of demand for landfill disposal of municipal solid waste using data from the Portland, Oregon metropolitan area. Efficiency losses associated with deviations from marginal cost pricing of disposal services are then derived. The efficiency losses of small deviations from long-run marginal disposal costs are not large. However, many municipalities finance solid waste services from general tax revenues, in which case waste generators effectively face zero marginal costs. Here, the efficiency losses are much larger, indicating that communities would benefit from introducing volume or weight-based pricing.