COST-EFFECTIVENESS OF INCENTIVE SCHEMES FOR WASTE MATERIAL RESOURCE RECOVERY

Abstract

The use of incentives to support positive behaviors in waste separation and recycling has been renowned in the literature. However, empirical literature on waste separation has paid more attention to the characterization of waste and the potential use of incentives, neglecting the cost implications of employing incentives in recycling schemes. Although studies have pined incentives as having the potential to increase recycling rates, their cost implications may also constitute a disincentive for effective recycling schemes. This study was conducted to identify the most cost-effective incentive option for recovering waste materials to inform policy decisions on prioritizing incentive options for efficient recycling. A source separation scheme was piloted in Tamale, where different incentive schemes (bonus, prize and waste receptacles) were given to households. The cost implications of using the incentives were evaluated based on the cost and revenue of recovering separated material resources from households under each of the schemes. This was followed by the use of a cost-effectiveness model to assess the cost-effectiveness of the schemes. The institution of a “prize” as a reward, in addition to the provision of storage facilities to participating households, was identified as the most cost-effective incentive option that generated the highest amounts of separated material resources at a relatively lower cost. Again, the study showed that the cost-effectiveness of the schemes depended on the incentive type and the service zones where the schemes were instituted