Household refuse: recovery or disposal? Research for a new economic optimum

Abstract

The alternatives of recovery or disposal of household refuse (MSW) lead to a conflict between the logic of the classical market-economy, with decreasing returns of scale, and that of public service — often undertaken by private companies (privatisation) — with increasing returns of scale.

The problem is first considered in the same urban area. To reach the financial optimum for the municipality, one condition is a 'pay-back', for the service, to the recovery sector. It is also necessary to examine the effects of a generalisation of the pay-back solution at a macro-economic level. The result also depends on the practical rules of auction and collection (selective and extensive, or exhaustive). In addition the integration of the recovery with the disposal, and vice versa, is examined.