Cost function analysis for solid waste management: a developing country experience

Abstract

The need for improved cost planning methods for solid waste management (SWM) is particularly strong in emerging economies where problems are severe, expectations for improvements are high, but finances are constrained. Estimating cost functions is suggested as an improved cost planning method. The research uses 1999 data from 298 Indian municipalities, covering over 140 million people. Stepwise multiple regression involving eight predictor variables was conducted on costs to detect any statistically significant correlations. The average costs on either a per tonne or per capita basis are most influenced by the total number of staff employed per capita or per tonne. The results are believed to be due to labour costs being such a high fraction of total costs in developing countries. Due to high variability in labour intensity between municipalities the data showed no clear correlation between per tonne or per capita costs and population, indicating no economy-of-scale. The data used here are subject to significant conjecture over their quality and age; however, the unique nature of the study should help future researchers investigating costs in emerging economies