ECONOMICS AND SOLID WASTE MANAGEMENT IN THE DEVELOPING WORLD by

Solid waste is a significant and growing problem in many urban areas of the developing world. Current systems of waste management in most developing country cities are very rudimentary at best and are grossly inefficient and ineffective. Uncontrolled landfill disposal of solid waste is a pervasive problem which causes a range of external costs, including human health hazards. This paper sets out a basic economic model for the analysis of alternative waste management options and system configurations. The potential role for economic incentive instruments within an integrated waste policy is also assessed. It is concluded that the most fundamental requirement is an integrated regulatory framework and supporting institutions. Once this framework has been established then there does appear to be a role for a selected range of economic instruments such as user charges and deposit refunds.