Cost-benefit analysis of waste reduction in developing countries: a simulation

Waste reduction activities such as recycling, composting, and pig feeding in Peru and other developing countries are mainly informal but already reduce about 15 % of waste generation. Although much research on informal recycling in Latin America recommends partnership with current waste pickers, there is a lack of methodologies on how to systematize these activities. This paper proposes a mathematical model that calculates yields and costs of separate waste collection, and analyzes and measures the effect of improvements such as source separation by residents and location of recycling and composting centers. The analysis finds that the largest effect comes from source separation. In this case, separate collection yield can be increased from the current 30 kg/waste picker/day to about 200 kg/waste picker/day, and the cost can be reduced from 110 US$/t to 20 US$/t. These changes affect the profitability of the recycling and composting business. The environmental and social effects of these improvements are also discussed.