The economic value of sustainable recycling and waste management policies: The case of a waste management crisis in South Korea

The price of recyclable waste has declined, and China is refusing solid waste imports. As a result, recycling companies in South Korea are refusing to collect recyclable waste, which caused a solid waste management crisis in April 2018. Due to this crisis, many people are unable to discard their recyclable waste. This study aims to assess the economic value of a sustainable recycling and waste management policy to solve the waste management crisis. The analysis in this study is divided into two parts: The first part estimates the inconvenience costs to residents using a contingent valuation method, whereas the second part analyzes the preferences for a new policy using a mixed logit model with a choice experiment. The results show that mean willingness to pay (WTP) per household is 41,234 (USD 36.96) KRW/year; the total WTP would be able to increase the total disposal capacity by up to 4.51%. In addition, at an adequate price level for the policy alternative, the policy acceptance rate suggests that the price of biodegradable volume-rate disposal bags should increase by no more than KRW 66 (USD 0.06) per bag. This study provides guidance to policy makers who wish to consider both validity and acceptability. (C) 2020 Elsevier Ltd. All rights reserved.