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ARTICLE IN PRESS

EC OLOG IC AL ECONOM ICS XX ( 2005) XXX–X XX

a v a i l a b l e a t w w w. s c i e n c e d i r e c t . c o m

w w w. e l s e v i e r. c o m / l o c a t e / e c o l e c o n

ANALYSIS

Ecological–economic modelling for strategic regional waste


management systems

S.E. Shmelev a,⁎, J.R. Powell b


a
EERU, The Open University, UK
b
CCRU, University of Gloucestershire, UK

AR TIC LE I N FO ABS TR ACT

Article history: This paper summarises some recent work exploring the development of a multi-criteria
Received 17 September 2004 optimisation tool for achieving sustainable solutions for municipal solid waste management
Received in revised form systems (MSWMS). The aim of the project was to provide a new methodological background
23 September 2005 for the regional solid waste management modelling taking into account spatial and
Accepted 27 September 2005 temporal patterns of waste generation and processing, environmental as well as economic
impacts of the system development with a particular emphasis on public health and
Keywords: biodiversity.
Ecological–economic modelling The research has focused on integrating three different approaches to the spatial-temporal
Waste management analysis of the MSWMS, namely a life cycle inventory analysis, which helps to identify
Integrated approach emission patterns within the MSWMS, a multi-criteria optimisation approach, which helps
UK to find compromise solutions among environmentally and economically preferred options,
and a geographic information systems approach, which provides a tool for identifying waste
management facilities, transportation environmental and social impacts, as well as analysis of
environmental impacts on valuable ecosystems. A Russian methodology for calculating
environmental damage was used to weight the importance of different sub-territories
covered by the system as well as simplifying the analysis of emissions from the waste
treatment plants. The approach provides a new perspective for the analysis of municipal
solid waste management systems at the regional scale. The principal novelty of the
proposed complex MSW strategic management model is an integration of the different types
of data–geographical, environmental and economic–using relational database technology.
Simulations using the dataset for Gloucestershire were performed on a simplified version of
the model. Simulations were undertaken to explore the potential effects on waste
management infrastructure of introducing the EU Landfill Directive.
Understanding the strengths and weaknesses inherent in the methods utilised has
suggested that a relatively affordable and easy to use tool can be developed for strategic
analysis of the municipal solid waste management system in a region, giving useful support
to the decision-maker regarding the potential development paths and trade-offs between
economic and environmental performance of a proposed waste management system.
© 2005 Elsevier B.V. All rights reserved.

⁎ Corresponding author. Tel.: +44 7729733366.


E-mail address: s.shmelev@open.ac.uk (S.E. Shmelev).

0921-8009/$ - see front matter © 2005 Elsevier B.V. All rights reserved.
doi:10.1016/j.ecolecon.2005.09.030

ECOLEC-02388; No of Pages 16
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logical economic modelling approach that attempts to


1. Introduction
integrate life cycle inventory analysis, environmental im-
pact assessment and economic appraisal within a geo-
Strategic decision-making for dealing with municipal solid
graphic information system (GIS) framework. The aim is
waste is a problem currently exercising the minds of many
not to provide an “optimum” solution but to highlight to
local governments (Gloucestershire County Council, 2002)
decision-makers the trade-offs inherent through investing
throughout the European Union (EU). This paper is devoted
in different mixes of waste management technology at a
to ecological–economic modelling of the strategic develop-
range of scales from the local to the regional. In other
ments in Municipal Solid Waste (MSW) Management Systems
words, it can reveal, for a particular area or region, how
at the regional level.
waste management should be ‘integrated’ in order to
The waste management problem in the EU is characterised
achieve the BPEO solution.
by increasing per capita production of waste materials, the
The waste management problem has a complex nature
need for high levels of investment in physical infrastructure
with a range of important dimensions such as multiplicity of
(incinerators, landfills, recycling facilities), institutional bar-
the types of waste generated in the system, complex spatial
riers (such as the long-term nature of contracts), a wide range
pattern of waste arisings, the necessity to transport waste
of stakeholders and a dynamic policy arena (e.g. the Waste
long distances for processing, a variety of emissions from
Electrical and Electronic Equipment and Landfill Directives are
waste collection, transporting and treatment to the environ-
two instruments aimed at reducing the amounts of biode-
ment, and the almost unpredictable and localised character of
gradable and electronic waste being landfilled). The waste
impacts of these emissions on humans and ecosystems. And
stream itself varies in composition over time and space with
although there have been attempts to analyse regional waste
seasonal and longer term changes in the quantities and
management systems taking into account environmental
amounts of various materials and the market for ‘recycled’
impacts of processes under study, most of them have not
materials is characterised by uncertain demand and fluctuat-
formed a holistic method for analysing all spatial, temporal
ing prices.
as well as qualitative aspects of the problem. Therefore, the
Strategic decision-making for waste is a complex prob-
aim of the paper is to provide a new methodological back-
lem that appears to offer scope to mathematical modelling
ground developing regional municipal solid waste manage-
procedures in order to find “optimal” solutions. Although
ment modelling, taking into account spatio-temporal pat-
standard modelling approaches are limited as the ideal
terns of waste generation and processing, environmental as
solution looks very different depending where you are sit-
well as economic impacts of the system development with a
uated: from the household or local government point of
particular emphasis on public health and biodiversity.
view the best solution would be to eliminate the waste
This paper takes the first steps to develop a model for
and remove the need for any waste service provision in
municipal solid waste management system at the regional
the first place, while the view from the waste industry
level. The paper analyses the post-consumption stages of
would be one of maximising the number of waste streams
the waste life cycle, namely collection, sorting, treatment
and quantities of waste over time to ensure survival of the
and final disposal. The municipal solid waste management
industry. This paper considers whether ecological economic
system under study is illustrated by Fig. 1, which shows the
modelling approach has anything new to offer the
main material flows within the system. The figure reveals
policymaker.
that the whole life cycle of materials entering and leaving
the waste management system consists of several stages—
raw materials extraction, processing, sale, consumption, fi-
2. Description of the problem nally becoming waste when they are discarded by consumers.
These materials in the waste stream then undergo collection,
Ecological–economic modelling is an aid to strategic deci- sorting (removal of recyclable materials) and treatment
sion-making for waste management where there is nearly (which can be thermal or biological), with the final stage
always strong local opposition to the siting of waste facili- being disposal in the landfill. The shaded areas in the diagram
ties, where alternative waste management approaches are the stages of the life cycle explicitly taken account of in
place heavy demands on the environment, where future this paper.
EU policy threatens to put the onus on producer responsi-
bility and thus remove significant quantities of high value
materials from the waste stream, and solutions are driven 3. Previous and current approaches to waste
as much by local politics as by economic factors. Standard management modelling
economic modelling approaches seeking the optimum or
least cost solution fail as they cannot incorporate the There have been many attempts to analyse municipal solid
wide range of factors that need to be included in a decision waste management systems over the past decade. Economic
that must be based on achieving the Best Practicable Envi- as well as environmental and social aspects of their perfor-
ronmental Option (BPEO). Decision-makers do need assis- mance have been taken into account. Despite the large
tance in making strategic choices that cause social and amount of research done, the application of the major meth-
environmental impacts, and tie up large amounts of ods employed does not provide a holistic picture of munic-
money and land for significant periods of time. The ap- ipal solid waste management systems that can examine
proach presented here is a first step in developing an eco- environmental impacts and the economic costs of siting,
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System boundary Raw materials


extraction
Impacts of processes
Impacts of transport
Unseparated waste
Non-organic waste Processing
Fully separated waste
Organic waste
Recovered energy
Recovered material Sale
Stages of the waste
management process

Consumption

Waste collection

Deep Organic/ Without


separation non-organic separation

Paper, glass, Sorting


metals, organic
etc.

Waste treatment
Incineration
Complex
recycling Composting

Landfill

Fig. 1 – The municipal solid waste management system: material flows.

technological processes involved, transportation, impacts (1997) looked at management costs, air pollution and the
and their spatio-temporal distribution, or identify the parties recycling goals, but missed out water and soil pollution,
affected. The main spheres of research in the field of noise, road congestion, employment and health impacts;
MSWMS in 1990s have been: analysis of waste generation Haastrup et al. (1998) concentrated on costs, air, water and
determinants (Hockett et al., 1995; Daskalopoulos et al., soil pollution, road congestion, technological reliability, but
1998; Chen and Chang, 2000, siting of waste management did not cover noise, employment, health impacts and recy-
facilities (Huang et al., 1995; Chang and Wang, 1996; Fre- cling goals.
driksson, 2000), the choice of the waste treatment method A substantial amount of research on local aspects of mu-
(Huhtala, 1997; Dalemo et al., 1998; Highfill and McAsey, nicipal solid waste management modelling has been carried
2001), environmental impacts of different waste manage- out using LCI methodology based on the recent models devel-
ment technologies (Nixon et al., 1997; Slater and Frederick- oped by White et al. (1999) and the Environment Agency's
son, 2001; Powell, 1996), economic mechanism of managing WISARD model. Powell et al. (1996), for example, compared
MSWS (Morris and Holthausen, 1994; Jenkins et al., 2000; environmental and social impacts of a kerbside collection
Palmer et al. 1997; Fullerton and Wu, 1998; Hong, 1999), scheme for recyclable household waste with a bring scheme,
transportation of waste (Bhat, 1996; Kulcar, 1996), macroeco- using life cycle assessments and economic valuation for
nomics of recycling (Nakamura, 1999; Ferrer and Ayres, 2000; assigning relative weights to these impacts, while Powell et
Masui et al. 2000) and complex planning (Huang et al., 1997; al. (1998) explored alternative approaches to waste manage-
Chang and Wang, 1997; Chang et al., 1997; Haastrup et al., ment for six district councils in Gloucestershire. Powell (2000)
1998). In the majority of this research, the focus has been on investigated the potential for using LCI analysis in local au-
single aspects of the problem, for example, Chang and Wang thority waste management decision-making.
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Many aspects of the waste management systems perfor- Hyun, 1999; Craighill and Powell, 1996; Powell, 2000), opera-
mance were not integrated in a holistic model taking into tions research methods (Chang and Wang, 1997; Chang et
account spatial distribution of environmental as well as al., 1997), multi-criteria assessment (Hokkanen and Salmi-
economic impacts, and analysing transportation, technolog- nen, 1997; Rogers and Bruen, 1998; Salminen et al., 1998) and
ical and siting issues simultaneously. Unfortunately, almost expert systems (Barlishen and Baetz, 1996; Haastrup et al.,
all of these models are of minimal use by the decision- 1998). All of these methods have particular uses in specific
makers as they miss some of the key institutional dimen- areas and Table 1 below identifies their strengths and
sions of waste management as identified by Vigileos (2002), weaknesses.
in particular the unequal social impacts of waste manage- The life cycle inventory approach (see Fig. 2) provides in-
ment, the nature of contracts drawn up between the in- formation on the spectrum and quantities of emissions from a
dustry and local authorities which are long-term, and given technological process and when it comes to comparing
sometimes require delivery of guaranteed amounts of different scenarios sophisticated methods of multi-criteria
waste, political pressures to recycle, barriers imposed by assessment (Munda and Romo, 2001) could be applied. How-
government regulations and the lack of communications ever, LCI methodology does not include any geographical or
between different participants in the waste management time dimension nor provide any estimates of the effect of the
sector. emissions inventoried. When used in isolation, it cannot iden-
Although there are examples of environmental–economic tify the best solution (i.e. BPEO) of the waste management
analysis of municipal solid waste management systems on problem.
the regional level by Haastrup et al. (1998), Chang and Lin MCDA, optimisation, Delphi on the other hand allow for
(1997) and Chang and Wang (1996), many applications do comparison between alternatives that need to be integrated
not incorporate an integrated analysis of environmental with an approach that can analyse the waste management
impacts from all stages of the life cycle of municipal solid system itself.
waste, spatial ecological–economic modelling of the distri- Geographic Information technology is a powerful tool for
bution of impacts, non-substitutable treatment of environ- analysing and exhibiting spatial data. However, rating and
mental and economic characteristics of the development of scoring of several scenarios (which is done often in geo-
the system, including non-monetary valuation of environ- spatial environmental impact assessment, EIA) is not
mental damage. What is missing is a technique for solving enough for performing an integrated analysis of the devel-
regional waste problems which inevitably have a large num- opment of the municipal solid waste management system.
ber of possible solutions due to variable population densi- It is necessary to perform a significant amount of simula-
ties, incomes, multiple (actual and potential) locations for tion experiments, changing different spatial siting patterns,
waste management infrastructure, protected landscape processing capacities, waste collection and sorting schemes
areas and high value ecological sites. There is thus an ur- to arrive at the decision space from which a selection can
gent need for improved methods for identifying BPEO1 solu- be made. All of these approaches need to be underpinned
tions to waste management problems at the regional level. by some impact assessment methodology. The one selected
The range of potential development paths for a solid waste here is the Russian methodology for environmental damage
management system, for example, could include a large calculation that was developed by Balatsky et al. (Vremen-
centralised regional facility, or a set of small localised naja tipovaja metodika, 1983; Vremennaja metodika, 1999)
ones, depending on the physical conditions, and this re- and allows for taking into account the spatial dimension of
presents a situation of choice between multidimensional environmental impacts in the form of coefficients of envi-
scenarios. ronmental value of the territories or regions (Vremennaja
metodika, 1999). At the same time, it lowers the dimension
of the analysed vector of environmental characteristics of
4. A comparison of approaches for analysing the given waste management system, which can be in turn
the municipal solid waste management problem divided into negative effects of recycling, incineration and
other waste treatment options, as well as negative effects
Among the methods used for analysis of MSWMS during the on air, water and soil. Such lowering of the dimension
past 10 years several should be mentioned here: input–out- simplifies the decision-making significantly and allows for
put approach (Nakamura, 1999; Ferrer and Ayres, 2000), mul- dealing with only two dimensions of the waste manage-
tiple regression analysis (Hockett et al., 1995; Daskalopoulos ment planning problem—environmental and economic.
et al., 1998), life cycle analysis (Powell et al., 1998; Song and The Russian methodology for estimating environmental
damage uses coefficients of environmental harm, attributed
to each type of emission into water and air. These coeffi-
1
The standard notion of BPEO-Best Practicable Environmental cients are developed from laboratory based biological re-
Option is defined as follows “A BPEO is the outcome of a search on animals (i.e. standard toxicological studies) and
systematic and consultative decision making procedure, which extrapolation of these effects on humans. This information
emphasises the protection and conservation of the environment
is then integrated with another set of coefficients—coeffi-
across land, air and water. The BPEO procedure establishes, for a
cients of environmental value of the territories or regions
given set of objectives, the option that provides the most benefits
of least damage to the environment as a whole, at acceptable that are based on the ecosystem value of the major biomes,
cost, in the long term as well as the short term”, in the 12th Report soils, water reserves, located in the territory of the given
of the Royal Commission on Environmental Pollution, 1988. region.
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Table 1 – Current tools for municipal solid waste management decision-making


Method Strengths Weaknesses

LCI—life cycle inventory • Reflects a wide spectrum of emissions • Only an inventory of emissions
• Allows integration of environmental data with economic • No information on impacts to the recipients
data • No time or space related dimensions
• Flexible, allows easy comparison of different scenarios • Unable to make local/regional/global trade-offs

MCDA—multi-criteria • Allow comparison of multi-attribute or multi-objective • Problems with weight estimation


decision analysis scenarios • Limitations by comparing only a relative small
• Flexibility in the choice of criteria number of alternatives, which could not represent
• Allows integration of quantitative and qualitative data the efficient set of solutions

Optimisation • Gives the best solution from the feasible set • The opportunity to solve large scale non-linear
• Permits solving of multi-objective problems by mixed integer problems limited by the existing
employing goal programming, compromise programming algorithms
techniques, etc. • Certain assumptions about the relationships in
• Allows the user to identify the efficient frontier of the the model have to be made
solution space for subsequent decision-making

GIS—geo-information • Reflects spatial patterns of the geographical distribution • Does not have a time dimension
systems of actors, flows and sensitive areas • Requires integration with other techniques for
• Allows the user to perform geographic analysis based on performing comparative analysis of scenarios
intersection, overlapping of different objects, etc. • The amount of output information is too high for
decision-making

Environmental damage • Allows for integration of many types of emissions into a • No common and recognised measurement unit of
calculation methodology, single measure of environmental damage environmental damage
Russia (1983, 1999) • Explicitly takes into account geographical peculiarities of • No account taken of the receptors of polluting
the given territories emissions

Delphi method • Allows the user to analyse complex situations with • Subjectivism of estimates
uncertain information and/or lack of time/resources for • Possibilities of unequal understanding the
decision-making using experts problem in question by the experts

Environmental impact • Allows detailed examination of all the impacts from • Very expensive in terms of time, resources, data
assessment (EIA) specific sites and technologies demands
• Can combine economic, environmental and social • Necessary to combine with dispersion modelling
information • Very superficial types of studies
• Focus is on the impacts and not the waste system
itself

Pollution dispersion models • Show detailed spatial distribution of emissions given the • Substantial computational power is needed (esp.
relief, climate and the characteristics of the source of for multiple sources)
emissions • A very expensive tool
• Difficult to analyse the impacts on the final
recipients

In summary, we can say that LCI is good at modelling the were combined into a geo-spatial EIA (Patil et al., 2002;
waste system but is only a first stage in identifying environ- Antunes et al., 2001), GIS and MCDA were combined by Dai
mental impacts as it concentrates on emissions to water, et al. (2001), LCI and MCDA were integrated by Powell et al.
land and air, but does not provide any indication of the (1996), and Munda and Romo (2001) and Powell et al. (1999)
impact or significance of emissions locally. It needs to be integrated a simple multi-criteria approach to examine envi-
integrated with other techniques such as EIA which can pro- ronmental impacts from alternative waste management sce-
vide the impact analysis needed based on the siting of infra- narios for the city of Bristol.
structure, or movement of waste and with some optimisation In summary, these studies are still limited and cannot be
procedure that can begin to deal with the issues of trading off used to solve regional waste problems because they have not
economic costs and benefits against the social and environ- elaborated all the complex of factors influencing waste man-
mental impacts of alternative waste management systems. agement processes at the regional level—namely spatial dis-
Thus, it is clear that what is required is a combination of tribution of waste arisings, impacts of transportation and
several methods in order to perform the complex analysis processing of waste as well as multidimensional character
of the potential development of the municipal solid waste of these emissions, time dimension of waste generation,
system. building new or expanding existing facilities and spatial dis-
Several studies have already tried to combine some of tribution of impacts of waste treatment processes on
these methods. During the 1990s, for example, GIS and EIA humans and valuable ecosystems. This paper reports on
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Waste treatment facilities


Incineration with energy recovery
Civic amenity sites
Landfills
Materials recycling facilities
Scrapyards
Transfer stations
Administrative borders
Administrative borders of wards

Fig. 2 – Location of the waste treatment plants in Gloucestershire.

research (Shmelev, 2003; Shmelev and Powell, 2004) that has different methods a more useful tool might be developed for
focused on the integration of three different approaches to the development of strategic municipal solid waste manage-
the spatio-temporal analysis of the MSWM problem, namely ment plans. The aim therefore was to develop an integrated
a life cycle inventory approach (LCI module), which helps to technique that would give useful support to the decision-
identify emission patterns within the MSWMS, a multi-cri- maker regarding the potential development paths and trade-
teria optimisation approach (MO module), which helps to offs between economic and environmental performance of
find compromise solutions among environmentally, eco- alternative waste systems.
nomically and socially preferred options, and a geographic Research carried out in Russia (St. Petersburg and the re-
information systems approach (GIS module), which provides gion) and the UK (Gloucestershire) has concentrated on a
a base for siting waste management facilities, transpor- complex analysis of the MSWMS, taking ecological, economic
tation, social impacts, as well as locating environmental as well as social aspects of the management of municipal
impacts on valuable ecosystems. A Russian approach to solid waste into account.
calculating environmental damage was utilised to weight Due to software limitations, it was decided to limit the
the importance of different sub-territories covered by the analysis of the municipal solid waste management system
system. It is hoped that this approach will provide a new to examination of five major components: i.e. economic
perspective for the analysis of municipal solid waste man- costs of running the system, public health, the state of
agement systems. the flora and fauna, saving of material resources and land-
scape quality. Four out of the five factors chosen to char-
acterise the waste management system relate to the main
5. Development of the integrated methodology goals of the EU Landfill Directive (European Council, 1999)
(reduction of adverse effects of the landfill of waste on the
Based on an understanding of the weaknesses of the methods environment, in particular on surface water, groundwater,
identified in Table 1 above, it was decided that by combining soil, air and human health) and also correspond to the
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most relevant subject themes of the UN Sustainable Devel-


opment Indicators: social (health), environmental (atmo- 6. Description of the modules within the
sphere, biodiversity) and economic (consumption and integrated method
production patterns) (United Nations, 2001). The fifth com-
ponent, ‘landscape quality’, was selected to reflect the im- 6.1. The GIS module
portant role that landscape plays in local communities as
stated in the European Landscape Convention, which The key elements of the GIS module are the digitised maps of
identifies landscape as “a key element of individual and the county of Gloucestershire, UK, obtained from a range of
social well-being”. Under Chapter II of the Convention, different sources. The maps are overlaid and allow graphical
signatories agree to “integrate landscape into…regional analysis of the location of the physical waste infrastructure,
and town planning policies…as well as in any other and transport routes in relation to the environmentally sen-
policies with possible direct or indirect impact on land- sitive areas and the centres of population density. The census
scape” (Council of Europe, 2000). These five components ward was taken as a minimal geographical unit for population
offered a relatively simple and straightforward means of data.
analysing economic–environmental trade-offs. The mone-
tary costs of operating a waste management system are 6.2. The impact assessment module
of critical concern to local authorities, materials savings
(i.e. recycling) are of national concern, and for strategic It should be noted that the methods of the analysis and com-
decision-making purposes both these elements need to parison of the emission inventory results within life cycle
be directly compared to the impacts on environmental analysis is an area open to debate. In some cases, the list of
and social factors (i.e. human health, environmental the emissions analysed numbers several hundreds items. In
‘health’ and landscape quality). The data on the selected order to deal with this vast amount of information in the
components were also available and relatively easy to current research, the methodology expressed in the Vremen-
obtain. naja metodika (1999) and Vremennaja tipovaja metodika
Life cycle analysis using the Proctor and Gamble (2001) (1983) was taken as an instrument for comparing scenarios
model was integrated with a GIS and an optimisation tech- with heterogeneous outputs. The list of substances taken into
nique. The LCA model allowed the researchers to examine a account in the analysis can be seen in Appendix A. The toxic-
wide range of emissions from alternative waste management ity coefficients database for all the pollutants allows conver-
scenarios; the GIS allowed actual and proposed waste man- sion of the wide spectrum of the different substances into a
agement sites, along with ecologically sensitivity of the land- unified index of the environmental damage, which lessens
scape to be mapped; the single criteria optimisation technique the dimension of the problem substantially and simplifies
permits the possibility of deriving a unique solution of the the solution procedure.2
problem. The method is used here to provide the spatial dimen-
The most difficult choice was that of the optimisation sion of environmental damage around waste treatment in-
procedure. There are well known, fast and reliable methods frastructure sites in the form of the coefficients of the
for linear problems, whereas it gets more complex when importance (significance) of the territories around the
the situation requires mixed integer programming. There waste treatment plants. Such coefficients were derived by
are ways for reducing the multidimensional problems to performing a series of operations on the GIS maps. The
single-criterion ones, however, and taking account of sev- dispersion of pollutants from the various waste treatment
eral objectives simultaneously. The type of optimisation facilities was approximated by a 5-km radius circle around
problem employed here (linear mixed integer programming each of the sites. The coefficients of significance were de-
problem) is complex and demands significant computation- rived based on the weighting of sensitive areas by a group
al power and efficient algorithms, especially for the real of experts based at the University of Gloucestershire using a
scale modelling. Constraints on resources and computa- Delphi approach. Standard national designations of ecolog-
tional power led to a focus on a two-dimensional problem ical and landscape importance were utilised by the experts:
by examining single-criteria overall system cost minimisa- Sites of Special Scientific Interest (SSSI), National Nature
tion with simultaneous calculation of an additional param- Reserves (NNR), Special Areas of Conservation (SAC), Spe-
eter (such as the environmental damage caused by the cially Protected Areas (SPA), RAMSAR sites and an indicator
system performance). Although limited this two-dimen-
sional solution space still provides a useful starting point 2
The approach used here was one developed by the Russian
for understanding how useful such an integrated method- environmental economic school, which is explained in Vremen-
ology might be. naja metodika (1999) and Vremennaja tipovaja metodika (1983).
The large sets of heterogeneous data used in the model The main idea of calculating environmental damage according to
(geographical, economic, environmental and social) are inte- the Russian methodology consists of integrating the amounts of
grated using relational database technology. The database emitted pollutants into a single index of environmental damage.
The actual emissions of polluting substances are multiplied by
system consists of several interrelated tables representing
coefficients of environmental harm, which are in the inverse
different aspects of the problem under study (e.g. different
relation to the MAC (maximum allowable concentrations) of
types of waste analysed, spatially distributed waste genera- pollutants in question. MAC are based on the results of
tion centres, a range of waste treatment facilities, multitude substantial medical and environmental research (i.e. toxicological
of emission types, etc.). data). The list of coefficients can be found in Appendix A.
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of population density. The average number of people living For each of the types of waste mentioned three basic
within 5-km circle around the waste treatment plants was treatment technologies are analysed: recycling, incineration
calculated using the average population density of neigh- with energy recovery and landfilling. The emissions to air,
bouring wards covered by the circle. The experts were asked water and soil are analysed. In order to get the integral index
to rate their perceptions of the relative sensitivity of the of environmental damage, the amounts of the polluting
designated areas to the potential emissions from the emissions are multiplied by the respected coefficients of en-
waste management facilities on a 1–10 scale. This informa- vironmental harm, according to Vremennaja metodika (1999)
tion was then integrated into a Randomised Preferences and Vremennaja tipovaja metodika (1983) as described
method (Hovanov, 1996), which took the relational data above.
derived from the experts to derive weighting factors. A Del-
phi approach was utilised because of the complexity and 6.4. Optimisation module
uncertainty over the impacts of the regional waste manage-
ment system on the different aspects of the human and This module integrates the information on plant locations
natural environments. The Delphi approach provided a and distances between the centres of population density and
quicker and cheaper alternative to more narrowly defined waste treatment plants from the GIS module and the infor-
pollution dispersion modelling approaches. The Delphi ap- mation on the amounts of emissions from each type of waste,
proach has the added advantage of enabling localised pri- collected, sorted and treated by each of the technologies from
orities to be integrated into the significance measures, but the LCI module. It is here that the choice of collection systems,
the methodology employed needs to be transparent in order sorting and treatment technologies, as well as geographical
to understand the trade-offs generated. Thus, such an ap- distribution of the waste management facilities are optimised
proach will provide variations in significance measures in over the time period of interest according to the total system
different regions, related to population geography and pro- cost minimisation criteria. The problem that is being analysed
tected areas. here belongs to the class of linear mixed integer programming
Then overall indices of the importance of the territories problems. LINGO optimisation software uses branch and
around the waste treatment plants were obtained. First, all bound methods to solve problems of this type. The informa-
the 5-km radius circles around the waste treatment plants tion on the problem dimensions for the Gloucestershire case
were overlayed onto the maps of the different types of study is laid out in Table 2.
sensitive areas (including centres of population density). The initial problem is set in a single-criteria cost mini-
Then the percentage of the intersection of each circle by misation framework. The reason for this is that all the
each type of the sensitive area was multiplied by the impor- improvements in the environmental performance of the
tance factor for a given sensitive territory and it was sum- waste management systems are bound by the budgets of
mated over all six types of areas analysed according to the the related administrative units, and cost minimisation is
formula: still the dominant criteria for waste management system
development. The environmental damage is calculated
X  
J
SðCk \ Ej Þ here as a by-product of the minimum costs scenario accord-
Ik ¼ Fj T
j¼1
SðCk Þ ing to the formula:

X
K X
K
where Ik is the importance score of the circle around kth ED ¼ Ik T gI TElk ;
waste treatment plant; Fj is an importance factor for the k¼1 k¼1
environmental sensitive territory type j, j = 1…J; S denotes
where ED is a total systems environmental damage, Ik is an
area; C is an area of the circle around a waste treatment
importance score of the territory around kth waste treat-
plant; Ej is a joint object consisting of the parts of environ-
ment plant, Elk is the amount of emissions of the lth type
mentally sensitive areas falling within a given circle Ck.
(l = 1…L) (from the LCI module) and γl is an environmental
The borders of each of the geographical objects are stored
damage coefficient for the emission type l.
in the digital database with additional information such as
The final two-dimensional solution space in the form pre-
the name of the object, areas and geographical coordinates.
sented in Fig. 7 is obtained by performing a sensitivity
The centre points of the census wards are used to define the
waste generation places, and transport routes are considered
here as the links connecting the centroids of the wards and Table 2 – Gloucestershire real problem dimensions
the waste treatment plants.
Set Definition Quantity of elements

6.3. The LCI module J Waste generation points 145


H Waste types 9
I Waste treatment centres 86
In the framework of the analysis carried out here, the life cycle
K Waste treatment technologies 6
analysis is bounded on the one side by the post-consumption
T Periods of system functioning 20
generation of waste and on the other side by final disposal. It
includes the analysis of the municipal solid waste stream Which amounts to 13,560,480 variables in the mixed integer pro-
comprising eight components—paper, glass, ferrous and gramming model, including integer variables: 92,880, real variables:
13,467,600 and number of constraints: 13,591,278 (without trivial
non-ferrous metals, plastics (film), plastics (rigid), textile, or-
constraints, stating non-negativity of decision variables—123,678).
ganic and “other”.
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EC OLOG IC AL ECONOM ICS XX ( 2005) XXX–X XX 9

analysis, which changes the waste treatment capacities, in Table 3 – Composition of municipal solid waste in
relation to landfill space. It allows the decision-maker to an- Gloucestershire, 1998/1999
alyse the given waste management system in terms of the Material Gloucestershire National
trade-offs between environmental and economic objectives.3 average, % average, %
The simplified version of the model utilised here based on
Fines 2.3 7
the work of Baetz and Neebe (1994) was built using the LINGO Ferrous 4.0 6
7.0 optimisation software. The model only permitted exami- Glass 3.4 9
nation of a reduced set of problem dimensions: three waste Green 11.3 21
treatment technologies—recycling, incineration and landfill- Putrescibles 34.4
ing were considered over 10 time periods with no consider- Misc. com. 5.8 8
Misc. non-com. 0.5 2.20
ation of space dimension. The problem's dimensions were
Non-ferrous 1.0 2
determined by the constraints in the number of boolean and Paper and card 20.8 32
continuous variables in the Demo version of LINGO 7.0. Due to Plastic film 4.9 5
the resource constraints (software limitations), the model has Rigid plastics 7.6 6
not been realised to its full potential. Textiles 3.9 2
Two versions of the model were developed, which use
Gloucestershire figures do not include the recycled waste.
Open Data Base Connectivity (ODBC) technology for transfer-
ring data from one software package to the other. The useful-
ness of the developed model is that it allows the user to in Gloucester to 19% in Cotswolds District. The dominant
change the initial data outside the model and then to “plug- municipal solid waste treatment method is landfilling (82%
in” the new datasets for subsequent solving. It is useful in the in the South West Region of the UK).
case of sensitivity analysis involving large number of param- The average composition of municipal solid waste in Glou-
eter changes. cestershire is presented in Table 3.
It should be stressed here that solving this problem in real Fig. 2 illustrates location of waste facilities and Table 3
dimensions with standard tools would require handling vec- compares waste composition to the UK national average.
tors of model variables with 15,000,000 components. This will Simulations using the dataset for Gloucestershire were
definitely require using more powerful database management performed on the simplified version of the model. 8140
systems (e.g. SQL Server) and the problem could be solved simulations were undertaken (see Fig. 7), where the waste
faster if its special structure could be taken into account. treatment capacities for recycling, incineration and landfill-
The problems that can be analysed include the choice of ing were changed. This could illustrate, for example, the
waste processing technology (e.g. among landfilling, compost- possible consequences of introducing the EU Landfill Direc-
ing, waste-to-energy incineration, recycling), waste manage- tive in the county, which may result in fewer landfills and
ment facility plant siting and optimisation of the whole increased recycling capacity, with consequent impacts on
MSWMS performance using different goal functions. transport routes and costs across the county. The objective
The next section examines a simple application of the of the directive is to prevent or reduce as far as possible
model to waste management in Gloucestershire. negative effects on the environment from the landfilling of
waste, by introducing stringent technical requirements for
waste and landfills, and reducing the quantity of biodegrad-
7. Case study of Gloucestershire able material going to landfill. The scenarios examined here
show the potential effects of reductions in available landfill
Gloucestershire lies in the west of England (South West Re- space as a result of the Directive and explore the impacts
gion), has a total area of 2,618,000 km2 and a population of of increased tipping fees and recycling subsidies on the
574,000 (2001). Gloucestershire comprises six local authorities: environmental and economic performance of the system.
Cheltenham Borough, Cotswolds District, Gloucester City, For- Fig. 7 illustrates the combinations of minimal costs and
est of Dean District, Stroud District and Tewksbury Borough. corresponding environmental damages for the whole
Average number of people in the households is 2.41. The range of scenarios examined. All the combinations of po-
average disposable income per person per year is £10,073 tential environmental damage and economic costs are
(1999, data for the South West Region), and annual waste given here under equal economic conditions. Only the
arisings range from a low of 280 to a high of 432 kg of munic- landfill and waste treatment capacities were changed in
ipal solid waste per person per year is produced in Gloucester- this analysis.
shire. The annual recycling rate in 1998/1999 ranged from 6%

8. The description of the results of the


3
Description of the software used—LINGO, ACCESS, MAPINFO, simulations experiments
Procter and Gamble LCI MODEL.The integration of the hetero-
geneous software was necessary for building the working The results of a series of simulation experiments are depicted
interactive modelling system. In the current research, the
in Figs. 3–7. The study of the developed model of the regional
optimisation software package LINGO 7.0 (demo version), GIS
package MapInfo Professional 6.0, Database management system
waste management system was conducted along the follow-
MS Access 2000 and spreadsheet MS Excel 2000 were used, along ing main lines: it was decided to study the sensitivity of the
with the Procter and Gamble LCI model. model first to the changes in technological parameters of the
ARTICLE IN PRESS
10 EC OLOG ICA L ECO N O M I CS XX ( 2005) X XX–X XX

Total costs and environmental damage

ED 5800000 700000000 C
5700000 600000000
Total system
5600000 management
500000000
costs, GBP
5500000
400000000
5400000
300000000 Index of
5300000 environmental
200000000 damage
5200000

5100000 100000000

5000000 0

10000
1000

2000

3000

4000

5000

6000

7000

8000

9000
L

Fig. 3 – Scenario 3. RE = 200, W = 200, LL = 5000.

available capacity of the existing landfill under different com- tutional transition to recycling part of the waste takes place,
binations with other technological parameters being fixed, causing considerable decrease in environmental damage by a
and later to the changes in price parameters—the cost of factor of 1.08.
recycling of a ton of waste and costs of collection and trans- In scenario 2, there is an option of opening a small addi-
porting waste to the landfill. The combinations of the system tional landfill with the capacity of 1,000,000m3. The first local
parameters used in sensitivity analysis are shown in Table 4. minimum of environmental damage is found at L = 5500. Such
ED—environmental damage denotes the index of environ- a sharp decrease in environmental damage is caused by the
mental damage and C—costs denotes total management growth in recycling, instead of harmful landfilling in the
costs in British pounds. landfill; the following growth in damage is caused by opening
In the first scenario, the recycling and incineration capac- of an additional landfill in the 9th period; and the rapid
ities were limited by 200,000 t/year, there is no opportunity to decrease in environmental damage starting at L = 4500 can
open an additional landfill. With parameter L decreasing at be explained by the ever increasing rate of recycling. The
first against a background of considerable growth in costs, the costs at the same time are starting to grow at a naturally
slow growth in environmental damage takes place, caused by faster rate.
intensive use of incineration as an alternative for the decreas- In scenario 3 (Fig. 3), the rapid decrease in environmen-
ing landfill capacity; then with decreasing L b 5500 the substi- tal damage as L approaches the value of 5500 is caused by

ED Total costs and environmental damage


C
7000000 900000000

800000000
6000000
700000000
5000000 Total system
600000000 management
costs, GBP
4000000 500000000

3000000 400000000
Index of
300000000 environmental
2000000 damage
200000000
1000000
100000000

0 0
1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Fig. 4 – Scenario 4. RE = 600, W = 200, LL = 0.


ARTICLE IN PRESS
EC OLOG IC AL ECONOM ICS XX ( 2005) XXX–X XX 11

Total costs and environmental damage

ED 6000000 700000000 C

5000000 600000000

Total
500000000
4000000 management
costs, GBP
400000000
3000000
300000000 Index of
environmental
2000000 damage
200000000

1000000 100000000

0 0
55 65 75 85 95 105 115 125 135 145
A

Fig. 5 – Scenario 6. RE = 600, W = 200, L = 5000, LL = 0, illustrating changes in A.

the growth of the share of recycling; the rapid growth in placing the incineration residue becomes critical, the shift
environmental damage after L b 4500 is caused by the open- towards recycling at a larger scale takes place.
ing of a new landfill for 5,000,000 m3 in the 6th period In the 5th scenario, everything develops similarly to the
with simultaneous decrease in the share of the recycling 4th; however, due to the larger planned incineration capacity
and incineration. After that, the growth in the share of and smaller recycling capacity, the shift to the second stage of
waste being incinerated is growing. The following local intensive recycling takes place later, at about L = 750, and to
minima can be explained by the shifts of the moment the third–earlier–around L = 200.
of opening an additional landfill to 5th, 4th period and so The sensitivity of the solution to the problem to the
on. changes in price parameters is illustrated in Figs. 5 and 6.
The tendency for the environmental damage and mini- Analysing the changes in environmental damage, caused
mal management costs to change in scenario 4 (Fig. 4) could by the decreasing price of complex recycling of a ton of
be divided into three different stages—10,000 N L N 5500, waste (parameter A, recycling costs, Fig. 5), we come to
5500 N L N 100, L b 100. In the first stage, the gradual growth the conclusion about the lack of changes in environmen-
of the share of the waste being incinerated takes place, tal damage with parameter A being reduced from 145 to
which causes the slow growth in environmental damage 110. Then the sharp decrease in environmental damage—
and costs; decreasing environmental damage and costs more than by a factor of 1.7 with the following decrease
growing at the faster rate in the second stage are caused in A to 80, and again, at the interval [55…80] environ-
by the growth in the share of waste undergoing complex mental damage is at the lower than in the first case, but
recycling at L b 100; when the landfilling capacity even for stable level.

Total costs and environmental damage

ED 6000000 800000000 C
700000000
5000000
600000000 Total
management
4000000 costs, GBP.
500000000

3000000 400000000
Index of
300000000 environmental
2000000
damage
200000000
1000000
100000000

0 0
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
10
20
30
40
50
60
70
80
90

Fig. 6 – Scenario 7. RE = 600, W = 200, L = 5000, LL = 0, illustrating changes in B.


ARTICLE IN PRESS
12 EC OLOG ICA L ECO N O M I CS XX ( 2005) X XX–X XX

6,000,000

5,500,000

Indicator of potential environmental damage


5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000
400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 800,000
Total management costs, thous. GBP

Fig. 7 – Two-dimensional solution space.

Changes in the parameter B—costs of collection and The shape of the thick curve representing the set of
transportation of waste to the place of their landfilling in non-dominated solutions (solutions that are equal or not
the Landfill 1 could suggest the optimal level for the trans- worse off than all the others) depicts the peculiarities of
port costs set up in the interests of the environmental pro- the complex problem of the development of a waste man-
tection (under conditions of legal waste discharges by the agement system giving the decision-maker the range of
companies and municipalities). The results of the simula- options he or she could choose from and thereby helping
tions experiments that could be seen in Fig. 6 show that, him trade-off economic versus environmental aspects of
with the transport costs being increased up to a certain level the development of the system in question. We are deci-
(in our case B = 120) and given the laws are observed, trans- sively not proposing the decision-maker “the best solu-
porting waste to the landfill may become less desirable than tion” or BPEO, but providing him or her a freedom of
recycling. informed choice; however, hard it may be to make one.
The main result of the work—two-dimensional solution The latter appears in the realm of pure political decision-
space, which is a integration of the results of sets of simula- making.
tion experiments 1 to 5 (Table 4), shows that, by increasing
total system management costs by a factor of 1.82, it is possi-
ble to diminish the total environmental damage by a factor of 9. Discussion
2.99.
The results presented here illustrate an application of a sim-
plified ecological–economic model of a municipal solid waste
Table 4 – Parameters changed in sensitivity analysis management system. Full development of the model would
Set of LL RE W L Changed The allow solution of more complex problems involving real deci-
simulation parameter interval of sions of siting, choice of treatment technology, collection and
experiments change sorting method. Certain weaknesses remain in the approach
1 0 200 200 L 10:10,000 taken here, primarily software limitations and probably lack
2 1000 200 200 L 10:10,000 of pollution dispersion modelling.
3 5000 200 200 L 10:10,000 The main strength of the model is that it allows the deci-
4 0 600 200 L 10:10,000 sion-maker to analyse the ecological–economic trade-offs in
5 0 400 400 L 10:10,000
the development of the municipal solid waste management
6 0 600 200 5000 A 55:145
system. It examines possible strategies of the development of
7 0 600 200 5000 B 10:300
the system, taking into account different siting options,
Key: L—available capacity of the existing landfill, thousands m3 per choice of waste treatment technologies, performs preliminary
year; LL—available capacity of the additional landfill, thousands
investment planning and explicitly takes account of spatial
m3 per year; RE—recycling capacity, thousand of tons per year; W—
dimension of environmental impacts on public health and
incinerating capacity, thousand of tons per year.
valuable ecosystems.
ARTICLE IN PRESS
EC OLOG IC AL ECONOM ICS XX ( 2005) XXX–X XX 13

In the life cycle analysis performed here, the boundaries waste and work on material flows accounting of products
are defined by the post-consumption solid waste generation entering the system in the first place, then with program-
through to the moment of it's final disposal. If the ming improvement a full scale decision support tool for
boundaries were altered to include elements related to strategic regional waste management could be created.
the production of the waste processing equipment, trans- The next step is to apply more powerful software, possibly
portation fuel life cycle, analysis of materials and pro- integrate pollution dispersion models for all sources of
ducts the solid waste was derived from, the results could pollution and analyse more rigorously the chains of
change significantly. impacts. It could be valuable to integrate the analysis of
The model presented in this paper could be developed environmental impacts of transportation, take into account
further to take into account the real dimensions of the prob- noise and congestion impacts. Models of this type could
lem, such as transportation of waste, improved pollution dis- then be expanded and applied at the regional level in the
persion models and introduce hyperbolic discounting (Daly EU, to provide improved information on the tradeoffs to be
and Farley, 2004). If we take into account the origins of made what are inherently difficult political problems.

Appendix A. The list of emission coefficients

Sector of the ecosystem Emission type Recycling Incineration Landfilling Damage coefficients

Air Particulates 0.00327 0.00002 0 2.7


Air CO 0.00228 0.0004 3.125E−06 0.4
Air CO2 0 1.1293 0.2209825 0.4
Air CH4 0 0 0.098215 0.7
Air NOx 0.00231 0.0016 0 16.5
Air N 2O 0.000053 0 0 30
Air SOx 0.003947 0.0003 0 20
Air HCl 0.0000033 0.0001 1.625E−05 20
Air HF 5E−09 0 3.25E−06 500
Air H 2S 0.000012 0 0.00005 500
Air HC 0.001692 0.0001 0.0005 20
Air Chlor. HC 0 0.0001 8.75E−06 50
Air Dioxins/furans 0 5E−13 0 50,000
Air NH3 0.0000004 0 0 28.5
Air As 0 0.0000025 0 500
Air Cd 0 0.0000005 1.4E−09 500
Air Cr 0 0.0000063 1.65E−10 1670
Air Cu 0 0.0000063 0 500
Air Pb 0 0.0000063 1.275E−09 5000
Air Hg 3E−09 0.0000005 1.025E−11 5000
Air Ni 0 0.0000025 0 500
Air Zn 0 0.0000063 1.875E−08 500
Air Landfill gas (250 nm3/t) generation (t/t) 0 0 250 0
Water BOD 0.00239 0 0.0004751 5
Water COD 0.02084 0 0.0004751 2
Water Sus. sol. 0 0 0.000015 0.15
Water TOC 0.000004 0 0.0000003 50
Water AOX 0.0000025 0 0.0000003 1000
Water Chlor. HCs 0 0 1.545E−07 0
Water Dioxins/furans 0 0 4.8E−14 0
Water Phenol 0 0 5.7E−08 0
Water NH4 4.47E−07 0 0.0000315 1
Water Tot. metals 0 0 1.442E−05 0
Water As 0 0 2.1E−09 90
Water Cd 0 0 2.1E−09 250
Water Cr 0 0 9E−09 550
Water Cu 0 0 8.1E−09 550
Water Fe 0 0 1.425E−05 1
Water Pb 0 0 9.45E−09 11
Water Hg 0 0 9E−11 15,000
Water Ni 0 0 2.55E−08 90
Water Zn 0 0 1.02E−07 90
Water Cl 0.000011 0 0.0000885 550
Water F 9.7E−07 0 5.85E−08 550
Water NO3 0 0 0 0.2
Water S- 0.000006 0 0 550
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14 EC OLOG ICA L ECO N O M I CS XX ( 2005) X XX–X XX

The environmental impact information needed will con-


Appendix B. Types of environmentally sensitive sist of:
areas taken into account by the model
• Emission coefficients of waste treatment by different tech-
AONB (Areas of Outstanding Natural Beauty)—the areas pro-
nologies (recycling, RDF, landfilling, etc.), taking into ac-
tected by the Government of the UK since 1949 “National
count the analysed types of waste (paper, glass, etc.) and
Parks and Access to the Countryside Act”. The main goal of
the list of substances of interest;
the designating AONB is preservation of the natural beauty of
• Emission coefficients of using different types of fuel for
the landscapes, and the recreational use is not a major goal
transporting waste;
here and is permitted to the extent that such use is in accor-
• Coefficients of environmental harm from different sub-
dance with the preservation of the natural beauty and the
stances emitted into air and water according to the Russian
needs of the agriculture, forestry and other spheres of the
environmental damage estimation methodology;
regional development as well as economic and social interest
• Expert weights of relative importance of the environmen-
of the local communities. Such areas number 41 in 2002—they
tally sensitive areas examined with respect to placing waste
cover approximately 15% of the territory of England and
treatment plants near them.
Wales.
SSSI (Sites of Special Scientific Interest)—the land desig- Economic information comprises:
nated as such according to the 1981 “Wildlife and Countryside
Act” (UK) (as amended). • Costs for processing different types of waste by different
NNR (National Nature Reserves)—lands designated accord- technologies;
ing to the “National Parks and the Access to the Countryside • Investment costs for building new waste processing plants;
Act” of 1949 (UK). • Transportation costs;
SAC (Special Areas of Conservation)—lands, which status • Prices of recycled materials and energy derived from waste.
is drawn in the EC Directive 92/43/ÅÅÑ on Conservation of the
natural environments, wild fauna and flora”. The data
Specific waste related information:
acquired have a status “candidate”.
SPA (Special Protection Areas)—lands, classified according
• Types of waste under consideration;
to the EC Directive 79/409 on the preservation of the wild
• Respective technologies used for processing each of the
birds. The data acquired have the status “classified”.
types of waste;
RAMSAR (unique wetland complexes)—the land, which
• Waste composition in the districts;
has a status of the Wetlands of International Importance
• Sorting and collection information.
according to Ramsar convention. The Convention on Wet-
lands, signed in Ramsar, Iran, in 1971, is an intergovernmental
Time related information:
treaty, which provides the framework for national action and
international cooperation for the conservation and wise use of
• Timescale of the model (number of periods under consider-
wetlands and their resources. There are presently 138 Con-
ation, length of periods;
tracting Parties to the Convention, with 1364.30 wetland sites,
• Impacts which could differ over time (e.g. gaseous emis-
totaling 119.6 million hectares, designated for inclusion in the
sions from landfills).Time factor in economic decisions (dis-
Ramsar List of Wetlands of International Importance.
count factor).

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