International Review of Waste Management Policy - Department of ...

Figure 8-2: Balance of Costs and Benefits of DVR scheme, Ghent and Destelbergen
€ per Household
127
€ 5.00
€ 0.00
-€ 5.00
-€ 10.00
-€ 15.00
-€ 20.00
-€ 25.00
-€ 30.00
-€ 35.00
-€ 40.00
25% Effect Attributed to
DVR Scheme
Low Damage
Costs
High Damage
Costs
50% Effect Attributed to
DVR Scheme
Low Damage
Costs
International Review of Waste Policy: Annexes
High Damage
Costs
100% Effect Attributed to
DVR Scheme
Low Damage
Costs
High Damage
Costs
Private Costs
Net External Cost, Time Excluded
Net External Cost, Time Included
Balance of Costs and Benefits, Time Excluded
Balance of Costs and Benefits, Time Included
Source: Hogg, D. (2006) Impact of Unit-based Waste Collection Charges. Referred to within this report
as ‘the OECD charging review’. ENV/EPOC/WGWPR(2005)10/FINAL, Paris: OECD.
Within this study, there are few permutations where the system imposes net social
costs. These are where a) a relatively small effect is attributed to the DVR scheme,
and b) where the damage costs used are low (so benefits of avoided disposal and
recycling are smaller). Such a scenario is shown on the left in Figure 8-2. The
situation appears slightly worse where the costs of time are taken into account.
However, even in the worst case the net social costs are of the order €2.00 per
household.
If, on the other hand, the DVR scheme is attributed with a more significant proportion
of the change occurring between 1997 and 1999, then benefits may be as high as
around €10 per household (50% effect attributable) rising to €21-34 if all the change
occurring in the period is attributed to the DVR scheme.
On balance, therefore, and based upon the effects of DVR schemes in similar
situations elsewhere, it seems likely that the DVR charging scheme will have
contributed to the generation of net social benefits. Indeed, perhaps the more
important observation is that, as part of a package, the DVR scheme contributed
(however significantly) to the generation of net social benefits of the order €20-30 per
household. This is one of the key conclusions of the OECD charging review. 163
163 D. Hogg (2006) Impact of Unit-based Waste Collection Charges.
ENV/EPOC/WGWPR(2005)10/FINAL, Paris: OECD.