Abstract |
This study analyzes the potential of pricing mechanisms in solid waste management systems. Such pricing mechanisms have been suggested as appropriate means for encouraging greater efficiency of resource, both within the solid waste management system proper and among sources of solid wastes. The study reviews the limited empirical evidence concerning supply and demand characteristics in markets for solid waste management (primarily collection) services. The analysis of processing and disposal and ancillary SWM services is hampered by the diversity of existing systems, and remaining problems in the conceptual clarification of the services provided. The analysis of cost functions in the Collection and Transportation subsystem suggests that these cost functions are subject to variable returns to scale. For smaller communities, there are economies of scale with respect to the amount of waste handled. For larger communities, scale effects vanish. The study concludes with a brief suggestion for a feasible method for implenting an effective pricing mechanism in SWM systems. |