An estimation of the social costs of landfill siting using a choice experiment

The paper by Sasao on using a choice experiment (CE) to incorporate social costs in siting a landfill is a good step forward in siting landfills and other waste handling facilities in a more socially responsible manner. However, Sasao’s method, which is well-established in the economics literature, has a number of underlying assumptions that practioners must be careful to consider in applying the approach. The focus of this discussion is on three issues: (1) the form of utility function used, (2) the perceptions of the survey questions by the respondents versus the intended perception, and (3) the application of the results to situations beyond the assessed situations. This discussion article urges practitioners to carefully check their implementation of a choice experiment method to make sure the elicited values correctly represent those of the community. This discussion should not be construed as suggesting that the approach or results of Sasao (2004) are incorrect. Instead this discussion is meant to elaborate on the ideas and approach presented by Sasao with the hope that the approach will be applied more widely.