Assessing the economic cost of urban pollution: A case study of landfill waste in Kulonprogo, Indonesia

Economics Department, Faculty of Economics and Business, Yogyakarta Muhammadiyah University, 55183 Yogyakarta, Indonesia

^* Corresponding author: endahsaptuty@umy.ac.id

Abstract

Introduction – Rapid urbanization in developing countries dramatically increases solid waste production, negatively impacting the socio-economy and ecology. Solid waste management is essential to minimize the associated risks, especially in health and the environment. Objective – This study assesses the economic cost of pollution from the disposal of household waste at the Banyuroto landfill, Kulonprogo, Indonesia. Methodology/Approach – This study uses the sickness and reimbursement cost approach. The subjects in this study were 100 households in Banyuroto, Kulonprogo, Indonesia, selected using cluster random sampling. Findings – The results show that the landfill has a negative impact on the community’s life because it causes air pollution (unpleasant odors), water pollution, and waste-related diseases, such as diarrhea, respiratory problems, flu, cough, cold, and itchy rash. The economic cost of pollution emerging from the landfill is IDR 2,355,000 per year. Meanwhile, using the replacement cost method, the estimated cost of environmental quality degradation is IDR 12,144,000 per year. For 1,230 households, the cost is IDR 125,941,304 per year, so the average economic cost due to environmental degradation is IDR 912,104,414 per year. Originality/Value/Implications – This study contributes to the literature by highlighting the environmental and health risks from the pollution caused by landfill waste in urban areas.