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Incentivizing secondary raw material markets for sustainable waste management.
Waste Management 2017 May 31
Notwithstanding several policy initiatives in many countries over a number of years, there remains a general sense that too much municipal solid waste is generated and that too much of the waste that is generated is landfilled. There is an emerging consensus that a sustainable approach to waste management requires further development of secondary raw material markets. The purpose of this paper is to propose a theoretical economic model that focuses upon this stage of a sustainable waste management program and explores policy options that could motivate efficiency in secondary raw material markets. In particular, we show how firm profit and social welfare optimizing objectives can be reconciled in a two-product market of waste management processes: landfilling and material reclamation. Our results provide theoretical support for building out recent Circular Economy initiatives as well as for the relatively recent emergence of landfill mining as a means for procuring secondary raw materials.
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