Valuation Study

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Economic Savings from Waste Diversion

Attributes

Medium: Land

Country: Philippines

Analytical Framework(s): Other

Study Date: 2001

Publication Date: 2002

Major Result(s)

Category Resource/Environmental Good PHP, million currency units
(2001)
PHP, million currency units
(2014)1
USD, million currency units
(2014)2
National Market (private) disposal costs saved 157.00 254.26 5.68
National Non-market (external) disposal costs saved 314.00 508.53 11.37
National Total 471.00 762.79 17.05
City-Based Market (private) disposal costs saved 3.50 5.67 0.13
City-Based Non-market (external) disposal costs saved 10.50 17.00 0.38
City-Based Total 14.00 22.67 0.51

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 61.95% from 2001 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.62 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Functional Transfer: The empirical model is of the following form: wij = Β1 xij + Β2 yij + Β2 zji + uij (i = 1, 2, ..., n; j = 1, 2, ..., m) where wij is dichotomous taking a value of 1 if household i in barangay j segregates or composts its wastes and 0 if otherwise; x is a vector of household socio-economic characteristics, y is a vector of household waste management-related behavioral and attitudinal variables, z is a vector of community waste management-related attributes; and u is the error term. The following are the variables that were included in the regression analysis: household socio-economic variables - income, age, household size and presence of yard (dummy); household waste management-related variables - total wastes disposed, time spent at home by mother (dummy), revenue received from sale of recyclables, and garbage fee (dummy); and a community waste management feature - garbage fee (dummy) and ordinance (dummy).

Study Note: This study aims to contribute to a better understanding of household waste management behavior by examining waste management practices and attitudes. More specifically, it analyzes the factors that promote household waste segregation and resource recovery and provides some quantitative measures of household wastes that are recovered, burned, and disposed of. The study also demonstrates the potential economic benefits from the adoption of resource recovery practices at the household level. The results of the study will provide inputs into the formulation of local waste management plans and programs, particularly on community waste segregation and recycling activities.

Study Details

Reference: Ma. Eugenia C. Bennagen et. al. 2002. Solid Waste Segregation and Recycling In Metro Manila. EEPSEA Research Report, No. 2002-RR.

Summary: This study examines household waste management systems and the attitudes and behavior of selected middle-income communities in two barangays in Metro Manila. The factors that influence household waste segregation and composting are examined using descriptive statistics and regression analysis of primary survey data. The study identifies some household attitudes and behavior with regard to waste management that are important in designing community-based waste management programs, especially in the light of the country's new law on ecological solid waste management. The study also demonstrates the potential economic benefits from the adoption of resource recovery practices at the household level.

Site Characteristics: Open dumping is the most common disposal method for solid wastes in the Metropolis. The recent closure of two "landfills" (in San Mateo and Carmona) and the partial closure of the Payatas dump site have resulted in the current garbage crisis in the Metropolis, with serious threats to public health and no clear solution in sight. The San Mateo landfill was closed in December 2000 while the Carmona landfill was closed in 1998. These disposal sites handled 32% and 35% of Metro Manila wastes, respectively. The Payatas open dumpsite, which handled 30%, was temporarily closed on August 2000 right after the Payatas tragedy, where a number of residents perished from a landslide caused by heavy rains. The dump has reopened since then to accommodate limited sources of wastes, mainly from Quezon City, where it is located.

Comments: This study examines household waste segregation behavior using binary choice modeling. Waste segregation is an activity undertaken to facilitate recycling and disposal and thus entails household resources such as time, space and effort in the same manner as waste recycling. This household activity consists basically of the separation or sorting of wastes into recyclables and non-recyclables, and storing these wastes in separate containers to facilitate recycling and disposal. It is therefore reasonable to assume that the household's decision to engage in waste segregation will be determined by the same factors that influence its decision to engage in recycling activities. However, since the amount or level of effort of waste segregation done by the household is also not observable, the study adopted a dichotomous or binary choice model.

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