This paper uses a standard input-output technique to examine the impact of solid waste disposal costs on product prices for the years 1977, 1982, and 1985. Unlike air and water pollution, solid waste disposal is an example where markets, at least partially, deal with externality problems. As the cost of using land as a disposal site rises, firms are encouraged to improve efficiency, explore new technologies, and recycle materials to reduce the volume of wastes generated. Further, because the cost of waste disposal directly affects the price of the product, waste disposal costs also affect consumer demand. The findings of this study support the common notion that waste disposal costs are rising and leading firms are attempting to reduce waste volume.
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Klein, Y.L., David Robison, H. Solid waste disposal costs, product prices, and incentives for waste reduction. Atlantic Economic Journal 21, 56–65 (1993). https://doi.org/10.1007/BF02299775
- Water Pollution
- Solid Waste
- International Economic
- Public Finance
- Waste Disposal