Landfill Scarcity and the Cost of Waste Disposal

This study examines the effect of landfill scarcity on the cost of municipal solid waste (MSW) disposal. We find the evidence that a decrease in the remaining capacity of landfill sites increases the unit cost of waste disposal. We also find that landfill scarcity impacts intermediate disposal costs (the cost of MSW disposal methods other than landfill disposal) more than landfill disposal costs. Based on the results of previous studies that estimated the external costs of landfills, the cost reduction effect of having a landfill site may overwhelm the external costs. Our results demonstrate that having its own landfill site not only provides the final recipient of MSW but also reduces the cost of MSW disposal. The latter type of benefit has been overlooked in previous studies on MSW disposal.