The jurisdictional decision to site a waste-to-energy facility in the United States : a public expenditure approach

An increasing number of waste-to-energy (WTE) facility cancellations have occurred since 1986 which has put into question the long viability of WTE in an integrated municipal solid waste management (MSW) plan. A total of 209 WTE initiatives in various stages of development were cancelled between 1986-1991; this compares with 158 operational facilities.

The purpose of this study was to investigate the local government decision to investigate and proceed with WTE technology as a problem of public choice. The public choice problem was theoretically within a discrete choice-random utility framework. The empirical estimation was done within an augmented median voter expenditure model.

Three sets of models were estimated in the study. A univariate probit and bivariate probit model were estimated, imposing alternative error structures on the model. A Heckman selectivity model was also estimated to account for the potential selection bias. Results from the bivariate probit model were insignificant and the focus was on the univariate probit model and the Heckman selectivity model with independent selection criteria.

This study shows what type of jurisdictions are more likely to site and build a WTE facility. Several factors which are important in the decision process during the initial decision node disappear in the middle decision nodes (e.g. pre-conceptual or conceptual), only to reappear during the later decision nodes (e.g advanced planned).

In general, a jurisdiction that is relatively higher income, a larger population, less educated, and has a fewer percentage of owner-occupied homes is most likely to first consider WTE. In addition, a jurisdiction is more likely to investigate WTE technology if there are presently MSW alternatives and there is a recognition of the disposal capacity problem. Of this group, a jurisdiction that is relatively higher income, has an older population, and has a larger percentage poor is most likely to site an operational WTE facility. In addition, a jurisdiction that is in better fiscal health, has a centralized decision-making process, and doesn't have an expenditure limitation on revenue bond financing is more likely to see a facility become operational.