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Welfare Implications of Waste
Management
Medha Malviya
MSc Economics
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Objective of the study
1) To make an appraisal of the various existingviewpoints on the need and importance on wastemanagement in India
2) To focus on the relationship between wastemanagement 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 acrosscountries depending on the level of development
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Methodology
Review of available literature- Reviewing the ongoing
waste management practices along with relevant case
study.
Analyzing the waste management policies and their
implications
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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 andinitiatives, 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 orpurchase whereas a refund or subsidy to recycling for
households that recycle or to firms that purchase
recycled materials.
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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 variouscombinations of an environmental tax on the firm and awaste collection charge.
In the presence of household waste reduction effort asecond best-optimum is achieved because due to thehigher the waste collection charge leads to moreincentives for the household for waste reduction as wellas for illegal waste disposal.
Community involvement is required for monitoring andenforcement of the policies.
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R. Kerry Turner, J. Powell and A. Craighill
(1998)
Focus on role, efficiency and implementationof Green Taxes.
Economic instruments can provide efficiencygains but in a political economy settings the
efficiency gains might reduce due to multiple
and conflicting policy objectives.
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Case Study- Kampala City
Objective of the study- To determine the economic
value of an improvement in environmental qualitydue 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) HighWTP, improvement in welfare, increase in
income
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Analysis ofWaste Management polices
European Union (EU)
Approach to waste management is based onthree 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 possiblenegative effects on the environment from theland-filling of waste, by introducing stringenttechnical requirements for waste and landfills.
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In April 2006, Directive 2006/12/EC - ensure that
waste is recovered or disposed of without
endangering human health and without usingprocesses 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 December2010
Strategies focusing on:
Prevention and recycling of waste
Limit waste production
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480
485
490
495
500
505
510
515
520
525
530
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Municipal Waste Generated (kg per capita) EU-27
Municipal Waste Generated (kg per
capita)
Source: Euro Stat
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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 consumptionpatterns or improved waste management techniques
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Source: Eurostat
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Focus on minimising waste
Recycling- Some countries have very high or high
recycling levels on all waste streams. Relation between Economic Growth andWaste
Generation
Waste generation is still increasing proportionally with
income, and economic and environmental costsassociated to land-filling are also increasing.
EU has on its agenda that waste generation shoulddecouple (no waste growth) from economic growthwithin the EU in the future.
Decoupling- linked to the main driving forces behindwaste generation: technical change, economic growthand household consumption.
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Policies undertaken by member states-
Germany
United Kingdom-Waste Strategy 2007
Emphasis is on recycling and reduction of waste at the
source level
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Brazil
Population is roughly the same number as the
combined populations of France, the UnitedKingdom, 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.
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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, andat the reduction of the volume of hazardous
waste, amongst other actions.
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Waste-to-Energy options for Brazil
Not considered as an option
Political, Economical and Technical barriers
Recommendations- Municipal SolidWaste requires
extensive changes before being able to benefit from
WTE technologies, starting by collecting, assessing andspreading of reliable data and information. Institutional
and legal reforms, R&D, training and public education
programs, financing and funding
mechanisms, modernization of technical, managerialand operational structures are also in order.
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India
In 2000, the MoEF introduced its Municipal SolidWaste Management Rules
The MNES initiated the National Programme on
Energy Recovery from UrbanWastes 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
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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
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Problems faced by developing countries:
IPRs- 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 managementpractices
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Results:
Capacity development, changing role of
stakeholders, and appropriate institutional settings Capacity development from the perspective of enabling
factors for governmental intervention and national andregional industrial development for recycling
Need for possible policy responses and internationalpolicy harmonisation to prevent a loop-hole of domesticrecycling mechanisms due to the expandinginternational material flow
Community-L
evel participation Reduction in tarrifs
Decentralisation
Strengthening of legal framework
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Properly define PRs
Role of private sector, ngos, etc.
PPP
Defining clear roles at each level
Education and awareness at the local level
Supporting Strategic Planning and Follow-upImplementation
Developing Self-financing Schemes An alternative waste management policy that concentrates
primarily on reducing hazardous wastes could be arguedfor, when focusing on the environmental costs of wastegeneration for (no waste growth)
To reduce waste intensities linked to firms, the policyinstruments introduced must bring about an introductionof waste preventing production techniques.
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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.
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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.euAccessed on 18th November, 2010
www.bdlaw.com/news-834.html Accessed on 8th November, 2010
Coehlo, S.T. et al., Barriers to Implementation ofWaste-to-Energy (WTE)
Technologies in Brazil, Zuan, D. et al., Improving Municipal SolidWaste Management in India- A
Sourcebook for Policy Makers and Practitioners., World Bank Institute
B. Perinaz., 2005. Capacity-to-Act in Indias SolidWaste Management andWaste-
to- Energy Industries
Eurostat
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Fisher, C., and. Davidson, C.; Europe as a Recycling Society: The
EuropeanRecycling Map.; European Topic Centre on Sustainable
Consumption and Production
Hall, D.,Waste management in Europe: framework, trends and issues