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Who will pay? Subsidies or taxes for recycling in the heartland
Authors:Robert E Deyle
Abstract:Attaining recycling goals of 25 to 50% over the next few years will require substantial recycling of residential wastes. A combined program of curbside recycling of conventional post-consumer materials and collection and composting of both leaves and grass will yield a composite diversion rate of 12 to 21% by weight. But in many communities, particularly in the west central and south central states of the American heartland, implementation of such programs will result in a net increase in solid waste management costs. Case studies of four communities in Oklahoma are used to estimate the potential increase in first-year net costs that would result from implementing a combined recycling and yard waste composting program. The results are compared to survey data from Oklahoma and Florida that define the amount residents are likely to be willing to pay for the benefits of recycling. The potential to close the apparent willingness-to-pay gap through state subsidies is then assessed. Where state capital grants programs are insufficient to bridge the gap, and local officials are reluctant to impose costs that are not publicly supported, public education efforts will be needed to increase the value residents ascribe to the nonexclusive positive externalities and local nonmarket benefits of recycling.
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