Charging for municipal solid waste disposal in Beijing.

• Proposed bundle pricing model considers unit price of landfill and incineration. • Bundling waste disposal fees can motivate the public to reduce generation of MSW. • Increase in revenue from bundling pricing model can alleviate the capital shortage. • Separate prices for landfill and incineration can promote incineration technology. Considering the various ways of Municipal Solid Waste (MSW) disposal that are currently in practice, this paper proposes a bundle pricing model of MSW disposal in Beijing, China. The bundle pricing model is set according to per capita annual disposable income, per capita annual consumption expenditure and MSW disposal cost based on the cost reimbursement principle and complementarity principle. This paper first estimates the unit costs of landfill and incineration respectively, and then designs three bundling packages according to three different income levels of households in Beijing (low-income households, middle-income households and high-income households). Specifically, based on our bundle pricing model, we propose to charge low-income households (of the average size of 3 persons) MSW fees 5.64 RMB per month, middle-income households 10.16 RMB, and high-income households 20.70 RMB per month. We also discuss and explain how the proposed mechanism can be expected to not only mitigate the capital shortage problem, but also reduce MSW quantity and improve the MSW incineration disposal technology. [ABSTRACT FROM AUTHOR]