Characterizing regulation and negligence rule uncertainty in solid waste management

Abstract

We propose a model of municipal waste management that combines waste quality monitoring with leachate control. These inputs modulate two types of uncertainty. First, waste quality is uncertain, as it arrives from several nonpoint sources and may contain hazardous waste. Second, while U.S. federal law requires landfill operators to employ these specific inputs, the rates at which they should be employed to avoid culpable negligence for environmental damages are uncertain. We extend the economic literature regarding the management of these types of uncertainty to this municipal waste context.