Pollution Credit Certificates Theory: An Analysis on the Quality of Solid Waste Management in Brazil

Purpose: This paper aims to introduce an economic instrument called Theory of Pollution Credit Certificates in the management of municipal solid waste in Brazil, in order to create opportunities to achieve the goal established in the above mentioned policy at lowest possible social costs.        Methodology/Approach: The methodology adopted has as a starting point the “constructo” of a scenario in which a city comprised of five brazilian districts produces its urban solid waste made up of 50% organic material. In the proposed scenario, similar to what happens in practice, a fee for collection and treatment of organic material would be charged for two different situations. Findings: The result showed that the use of Pollution Credit Certificates Theory has a better cost-effectiveness for solid waste management because it allows reaching the environmental goal at a lower cost to society. Research Limitation/Implication: Subjectivity of the analysis, due to the “constructo” proposition in the studies. Originality/Value of paper: From the results obtained, we inferred that the use of the Pollution Certificates Theory for the management of brazilian municipal solid waste benefits from economies of scale as it allows in the scenario determined, that districts sell their spaces at the landfill and parallel to this, to promote the practice of composting organic waste in the municipality.