Pricing landfill externalities: emissions and disamenity costs in Cape Town, South Africa

Abstract

This study attempts to estimate the external costs of landfilling in the City of Cape Town, using the benefits transfer method (for emissions) and the hedonic pricing method (for disamenities). The results show that external costs are significant; ranging from 7% to 32% of overall costs. This illustrates the importance of taking external costs into account in comparing waste management alternatives, in order to reduce the likelihood of inappropriate decisions being made.