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The Role of Economic Analysis in Local Government Decisions: The Case of Solid Waste Management

The issue of solid waste management has risen to national prominence in the last decade, fueled by increasing waste disposal costs and changing public attitudes. This situation presents a major opportunity for economists to use their applied microeconomics skills to assist state and local governments manage waste in a cost effective fashion. While findings from formal research efforts may ultimately make their way into the decision-making process, perhaps economists can play an even more significant role in emphasizing the importance of the most basic economic concepts and principles for sound decision making in solid waste management or the many other areas in which local public choices are made. These areas would include at least the following: opportunity cost, marginal analysis of costs and benefits, and the role of economic incentives.