A methodology for the technical-economic analysis of municipal solid waste systems based on social cost-benefit analysis with a valuation of externalities

Abstract

Countries face a serious problem due to the generation and management of higher volumes of waste. Large-scale production of waste has promoted the establishment of various operations (collection, transport, treatment and disposal) for its management. When a MSW management system is implemented, it can generate different impacts or consequences (internal or external impacts). Generally, external impacts (social and environmental impacts) are not reflected in MSW economic analysis or taken into consideration in decision-making processes in regard to MSW management options. For this reason, the objective of this paper is present a methodology with which is viable to conduct the technical-economic analysis of municipal solid waste management projects based on social cost-benefit analysis (sCBA) as it considers internal and external impacts. Its main objectives are to determine the total benefits (the difference between revenues and costs) generated by a project and to reduce uncertainty and risk of investing in particular MSW management system. Finally, a case study was carried out to verify the validity of the methodology through analysis and valuation of different impacts of a light packaging waste and bulky waste facility. Through the application of the methodology, it has been possible to visualize that this facility is viable operationally (BP = 42.94 €/ton) as economically (BT = 87.73 €/ton).