WHERE DOES ALL THE GARBAGE GO? BASIC LANDFILL ECONOMICS DRIVING REGIONAL WASTE FLOWFOR PRIVATE INDUSTRY

摘要

Frequently, in markets with competing solid waste service providers, the flow of solid waste from generator to finalrndisposal can appear to be a bewildering web of crisscrossing transportation routes leading to transfer and disposal locationsrnwhich could be across the street or three states away. Although to the unfamiliar, this waste flow can seem costly andrninefficient, it is actually part of a well-developed system. Within a competitive disposal market, several well-definedrnfactors drive private companies’ solid waste transport and disposal decisions. For-profit companies operate in a manner tornmaximize profits from waste collection and disposal, and three major issues shape their decision-making:rn1) Productivity;rn2) Economies of Scale; andrn3) Vertical Integration.rnThis paper will discuss these three issues and how they relate to the management of solid waste by private for-profit wasterncompanies. In addition, to further illustrate these concepts, a simple hypothetical disposal market with several competitorsrnwill be reviewed. On the surface, this market may appear to be disorganized, but with the application of the economicrndrivers identified, the web will unravel to reveal rational decision making by managers responsible for directing wasternflows associated with their solid waste operations.