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LAMBON, Danissa M.


2013 45686

ECON 172

A Critique Paper on the Journal Impacts of Units Pricing of Solid Waste Collection and
Disposal in Olongapo City, Philippines
Pollution and/or environmental problems occur when the wastes produced and disposed
by the economy is already beyond the absorptive or the assimilative capacity of the environment.
In order for the economy to prevent this type of pollution, reducing residuals is the solution. This
journal report is suggesting a two-phased unit pricing scheme for Olongapo City. Unit Pricing is
the cost per unit of weight or volume of wastes or as defined in the journal, it is the pricing of
solid waste collection and disposal services based on the level of service, either in volume,
weight or bulk (Bennagen, 2004). The journal report focuses on the advantage of the unit
pricing scheme over the flat fee pricing scheme and on suggesting policy implementations in
Olongapo City and/or the whole country, the Philippines.
This report is sub-divided accordingly into different sections. The first part is the
conceptual framework of the research. This part discusses environmental economics concepts
which come very handy in these types of researches. The readers will already see in this part that
the conclusion of the report is properly inclined in its objective. Also, the concepts discussed in
environmental economics can easily be understand in this part and the readers can already find
that there is a correlation between the price and the quantity of waste or the demand for SWS
(solid waste collection services). Furthermore, the flat fee pricing of waste disposal is said to be
inefficient because it is not taking into account the external costs of SWS.
On the second part of the report, data about different studies about unit pricing was
shown. Past studies suggest that indeed unit pricing is a way more efficient technique that the flat
fee pricing of waste disposal. Unit pricing also can improve social welfare by 650 million US
dollars and increase net savings to 2.2 million US dollars to 7.0 million according to a study.
The journal report has complete information on how the experiment was done in
Olongapo City. The researchers conducted a survey of 360 household to assess their waste

management practices and attitudes. Then, they had broken down the number of households to
72 and included only those who are in high-density barangays which is a good decision because
according to surveys, low-density barangays have a high chance of having illegal dumping than
of high-density barangays. The results are broken down into graphs which are easy to
comprehend and thus, it still is inclined with the conclusion that unit pricing is an efficient
technique in reducing wastes and pollution.
The report concluded that Olongapo City is ready to convert its flat fee pricing scheme to
a unit pricing scheme. The study found that the residents are already using waste management
techniques which are in compliance with the existing Republic Act 9003. The results are still
show that the unit pricing scheme is found to be efficient and that it promotes an increase in net
saving and also in social welfare gains. Furthermore, this unit pricing scheme is acceptable by
the majority of residents of the city thus, it would be easier to divert from a flat fee to a new
scheme. A unit pricing scheme in Olongapo City will bring welfare to its residents and the whole
city and if designed and implemented properly for the whole country, a lot of social benefits and
a cleaner environment will be enjoyed by a developing country like the Philippines.

Bennagen, M., & Altez, V. (2004). Impacts of Units Pricing of Solid Waste Collection and
Disposal in Olongapo City, Philippines. Impacts of Units Pricing of Solid Waste
Collection and Disposal in Olongapo City, Philippines. Retrieved February 6, 2016, from
Pollution. (n.d.). Retrieved February 07, 2016, from