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Centralized collection and disposal is an integral component of waste managementstrategies for many solid and liquid wastes, and carbon capture and storage is currently beingconsidered for gaseous waste. In this paper we show how collective waste disposal systemsintroduce essential changes in the design of optimal environmental policy. Absent collectivedisposal, an optimal environmental policy imposes relatively stringent regulations on polluters inregions where local environmental damage functions are “high”; however, under collectivewaste disposal, the optimal environmental policy level increases monotonically over distancefrom the disposal site, and this is true irrespective of the degree of spatial heterogeneity in localenvironmental damage functions. We characterize the optimal spatial pattern of environmentalpolicy levels under collective waste disposal and identify optimal membership size for wastedisposal networks comprised of homogeneous producers.

Subject(s): Environmental Economics and Policy

Issue Date: 2013

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/151142

Total Pages: 27

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2013 Annual Meeting, August 4-6, 2013, Washington, D.C.

Autor: Hamilton, Stephen F. ; Sproul, Thomas W. ; Sunding, David ; Zilberman, David

Fuente: http://ageconsearch.umn.edu/record/151142?ln=en

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