Treatment of Household Waste in the Context of the Social Welfare Function
Journal Title: Проблеми економіки - Year 2016, Vol 2016, Issue 3
Abstract
The reasons for the contemporary catastrophic state of the accumulation of dangerous household wastes have been analyzed. The basic historical, economic and social factors that led to the current situation have been identified. The estimation of the rate of accumulation of household wastes and the volume of investment required for the almost complete inhibition of the accumulation process have been performed. There has been suggested an analytical type of the regional social welfare function, which takes into account the main components of the process, investments in recycling, potential reduction of the area intended for landfills and their use in the agricultural business, expenditures on transportation. As a result of the calculations there obtained the shadow price of allotting territories for landfills, which at introduction of a relevant legislation can serve as a reference point for local communities. On the basis of the NPV model there made proposals of the introduction of tax incentives, which can make the business attractive for investors.
Authors and Affiliations
Andrey Skripnik, Inesa Mihno
Keywords
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