ECONOMIC POLICY: Municipal waste management Finland
Welfare change to society as a whole
-Methodology
o Consumer welfare measurement
o Producer welfare measurement
o Market distortion policies
o Externality policies (if relevant)
E.g. on the consumer side are you using consumer surplus, equivalent variation or compensating variation?
o Unlikely that you will have sufficient data available to actually calculate welfare changes (but if you do, great)
o Even if you don’t have all the data you need to calculate, but you have some that you think is relevant or interesting, you can include it and then use other methods to do a more detailed policy analysis
o An alternative is looking at published works from economists who have done welfare evaluations of the policy change that you can cite
A conceptual framework for the analysis (e.g. how would you do it if you had more information)
If data and published works aren’t available, you need to show you understand the theoretical approach to evaluating the welfare change from an economic perspective
Graphs may be helpful here o Make sure you still comment on what you think would be the overall welfare change for society
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