Urban Economics and Planning

Urban Economics and Planning

Benefit-Cost Analysis of Municipal Solid Waste Management: A Case Study of Robat Karim City

Document Type : Original Article

Authors
1 Assistant Professor, Department of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran
2 Master of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran
Abstract
Today, economic development, population growth, and urbanization have made the environment highly vulnerable to damage and destruction. In this regard, municipal solid waste plays a significant role in demolition. The economic disadvantage of the waste management process is the most important issue that neglects to spend on managing external environmental impacts and therefore the financial sustainability of this process is essential.In this paper, the economical and financial appraisal of three phases of waste management process including storage, collection and transportation paid for the city of Robat Karim by cost-benefit analysis. The results showed that in the present situation, considering that the cost of project) fixed and variable costs (are much higher than the proceeds of the residual income, this process is not from the private sector investors point of view. In order to examine the financial feasibility, three scenarios of change include a 15% reduction in fixed costs of the project, a 30% increase in revenue from the sale, and finally in terms of indirect benefits of reducing health costs due to proper waste management performance, Was investigated. The results showed that in terms of these changes in the above scenarios, the internal rate of return will be 40% and the benefit-to-cost ratio will be about 1.20 and the payback period will be 4.25 years, so the waste management process can be financially feasible. The results of this study can provide the necessary information for determining governmental incentives to make the process of waste management by the private sector.
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Volume 2, Issue 1
Winter 2021
Pages 28-36

  • Receive Date 25 February 2021
  • Revise Date 12 April 2021
  • Accept Date 24 April 2021