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Is municipal solid waste recycling economically efficient?

Doron Lavee1

  • 1Department of Economics and Management, Tel Hai Academic College, Upper Galilee, 12210, Israel. doron@pareto.co.il

Environmental Management
|August 10, 2007
PubMed
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Municipal solid waste (MSW) recycling is often more economically viable than assumed. A study in Israel found recycling can reduce municipal waste management costs by 11% on average, even without considering externalities.

Area of Science:

  • Environmental Science
  • Waste Management
  • Economics

Background:

  • Traditional views suggest municipal solid waste (MSW) recycling is not economically viable without considering externalities.
  • Externalities, long-term dynamics, and life-cycle assessments are often cited as necessary for recycling to be socially beneficial.

Purpose of the Study:

  • To assess the economic viability of MSW recycling in Israel.
  • To determine the potential cost reductions achievable through recycling, even without accounting for externalities.

Main Methods:

  • A computer-based simulation was developed to assess MSW handling and treatment costs.
  • The simulation was applied to an extensive database from 79 Israeli municipalities, covering over 60% of national MSW.
  • Cost comparisons were made between 100% landfilling and systems incorporating recycling.

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Main Results:

  • Recycling is optimal for 51% of municipalities, even when ignoring externality costs.
  • Adopting recycling can lead to an average direct cost reduction of 11% for municipalities.
  • Obstacles to recycling utilization were identified through municipal representative interviews.

Conclusions:

  • MSW recycling is more frequently optimal than commonly believed.
  • Significant direct cost savings are achievable through recycling implementation.
  • Understanding and addressing identified obstacles is crucial for increasing actual recycling rates.