ABSTRACT
The increasing amount of solid waste requiring disposal is one of the most significant environmental problems the UK faces. This accumulating waste pile is an indication of potentially inefficient resource usage because of the presence of so-called externality effects. These externalities are often unpriced and uncompensated social costs such as air pollution, disamenity effects and water contamination risks. The externalities are generated during the transportation and disposal (via landfill and incineration) of the solid waste, but are not adequately accounted for in the costs of such disposal operations. The resulting inefficiencies mean too much waste is generated at source, and too much pressure is put on the assimilative capacity of the environment.
