Measuring externalities of waste transfer stations in Israel using hedonic pricing

This study estimates the economic value of externalities related to waste transfer stations in Israel. Most externalities are associated with local disamenities experienced by residents living in close proximity to transfer stations - including noise, odor, litter, vermin, visual intrusion and any associated perceived discomfort. Following the mapping of all active transfer stations in Israel, problematic sites near residential areas were identified. Four of these sites were selected for detailed examination. The study involved estimating the economic value of disamenities using the Hedonic Price Method, which examines the impact of disamenities on property values. The results indicate that the maximum spatial extent of the impact occurs about 2.8km away from a transfer station with an increase of about $5000 in housing price for each additionalkm away from the site. Alternatively, an increase of 1% in the average distance of a house from the local transfer station is associated with a 0.06% rise in the price of the average house. These figures, representing the relationship between changes in environmental quality and property prices, indicate that transfer stations create externalities that should be taken into account in location and clean-up policies for transfer stations as well as in potential compensation policies.     

Valuation of externalities of selected waste management alternatives: A comparative review and analysis

Accessible and transparent data on the social costs of externalities is crucial to waste management researchers, decision-makers, and managers, if waste management strategies are to be successfully analyzed and implemented. The primary objective of this study, which is based on a thorough review of existing literature and research, was to assist the abovementioned in their decision-making with reliable recent data, by mapping, gathering, analyzing, and comparing different valuation results of external costs associated with various types of pollution and disamenities related to landfilling and incineration of solid waste.The second objective was to assess the suitability and reliability of various valuation methods and techniques that were implemented in the reviewed valuation studies, as well as the transferability of valuations across sites.The paper focuses on studies conducted since 1990, because in dynamic fields such as the waste sector, externalities, and valuation, it is essential to stay current with the most recent information and valuations.We discuss the issues and the limits of the valuation techniques and analyze the estimates of all the studies, presenting the results in the form of intervals and averages of damage costs. In spite of the inconsistencies evident in the variability in the results we reviewed, the outcome of this first comprehensive critical analysis is significant and the valuations obtained in this study provide estimates of orders of magnitude of external costs that can be used by decision makers in the waste sector to address important policy questions associated with social welfare.     

A critical review of economic valuation studies of externalities from incineration and landfilling.

The primary objective of this study was to assist waste management researchers, decision-makers and waste managers at national, regional and local levels, in their decision-making processes, with most recent valuations on the environmental and social costs of externalities associated with various pollutants and disamenities related to landfilling and incineration of municipal solid waste. The aim was achieved by mapping, gathering, analysing, comparing and synthesizing various valuation estimates, based on a thorough review of existing literature. This study provides the first comprehensive review and analysis focused on primary and secondary valuation studies, conducted since 1990. The second objective was to assess the appropriateness and reliability of the valuation methods and techniques that were performed in the reviewed studies. The results of the review are summarized in tables, organized by topics and units of measure and in addition a classified list that describes the profile of the reviewed studies is provided. The results are then analysed and compared, and recommended ranges of the values are presented. The study reveals inconsistency in part of the estimates across the reviewed studies and provides reasonable explanations for the variations. Given the nature of uncertainty, and the difficulties associated with transferring values among different places and cases, these values should be considered mostly as an indication for the order of magnitude of the externalities. Nevertheless, these essential estimates of the external costs can beneficially be used with proper adjustment for each individual case to address important policy questions regarding landfilling and incineration of waste.