Pricing Solid‐ and Hazardous‐Waste Landfill Capacity

Abstract

Landfill capacity for both solid and hazardous wastes has become an exhaustible resource in many regions. Once filled, the function of existing landfills can only be replaced by siting new landfills, incineration, export of wastes from the region, recycling, or curtailment of waste production. This paper applies optimal depletion theory to setting prices for disposal of wastes in scarce landfill capacity. The results not only price landfill use throughout its life, but also select an optimal lifetime for the landfill. The approach is developed in detail for the case where a landfill is to be replaced by a single, long‐lived incinerator. The optimal incinerator size is also found. The approach is demonstrated for an example problem.