The Determinants of Hazardous Waste Disposal Choice: An Empirical Analysis of Halogenated Solvent Waste Shipments

In this paper, we estimate conditional logit models of generator’s choice of waste management facilities (TSDFs) for shipments of halogenated solvent waste documented by the manifests filled out in California in 1995. We find that the probability that a facility is selected as the destination of an off-site shipment of halogenated solvent waste depends on the cost of shipping and disposal at that facility, on measures of existing contamination at the site, and on the track record of the receiving facility. Generators do seem to balance current disposal costs with the likelihood of future liability, should the TSDF become involved in either the state or federal Superfund program. In general, we find no evidence that generators prefer “wealthier” TSDFs or “larger” facilities, suggesting that there is a role for smaller, private companies in the management of halogenated solvent waste. When attention is limited to so-called “restricted” wastes containing halogenated compounds, which cannot be landfilled, the best match between the waste and the treatment offered by the facility may be more important than saving on the cost of disposal, and price may even be interpreted as a signal for quality of the facility.