A theoretical framework for determining environmental costs, benefits, and the net welfare effects associated with hazardous waste management

This paper reviews and presents a theoretical model to determine the costs, benefits, and welfare effects of hazardous wastes management. According to the Iranian law, environmental costs are assigned to waste producing firms. However, in practice, due to weak enforcement programs, firms do not pay any environmental costs. Using the basic principles and logic of welfare economics, we present a micro-level model for analyzing an industry that generates waste as a by-product of its production process. Firms in the industry choose the least cost method of disposal (either legal or illegal disposal). By utilizing various figures of presented models in partial equilibrium structure we found R'1, R'2 and 3