A Study on the Economic Valuation of Environmental

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Externalities from Landfill Disposal and Incineration of Waste

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Consulting Engineers and Planners A/S

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Table of Contents

Executive Summary i

List of Abbreviations ix

1 Introduction 1

1.1 Study Background, Purpose and Context 1

1.2 Study Delineation 2

1.3 Outline of the Final Report 2

2 Introduction to Cost-Benefit Analysis 5

2.1 Cost-Benefit Analysis in Decision-Making 5

2.2 Cost-Benefit Analysis in Waste Management 7

2.3 Cost-Benefit Analysis and Valuation of Externalities 8

3 Methodology for Quantifying Externalities 9

3.1 The Concept of Externalities 9

3.2 The Theoretical Framework 10

3.3 The Study Approach 13

4 MSW and the Waste Management System 15

4.1 Definition of Municipal Solid Waste 15

4.2 The Waste Management System 17

4.3 Receptors and Damages 18

5 Impacts of Incineration 21

5.1 Inputs and Outputs of the Incineration Plant 21

5.2 Emissions and Impacts 23

6 Impacts of Landfill Disposal 27

6.1 Inputs and Outputs of Incineration 27

6.2 Emissions and Impacts 28

7 Economic Valuation of Externalities from

Incineration 35

7.1 External Costs of Air Emissions 35

7.2 External Costs of Emissions to Water and Soil 37

7.3 External Benefits 39

7.4 External Costs of Disamenity Effects 40

8 Economic Valuation of Externalities from Landfill

Disposal 43

8.1 External Costs of Air Emissions 43

8.2 External Costs of Emissions to Water and Soil 45

8.3 External Benefits 48

8.4 External Costs of Disamenity Effects 48

9 Examples of Externality Cost Calculations 53

9.1 Incineration 54

9.2 Landfill Disposal 58

References 61