Waste Disposal External Cost Gap Tool

Description

Return externalCostPerTonne = socialCostPerTonne-privateCostPerTonne, residualWedge = externalCostPerTonne-chargedTaxPerTonne and totalResidual = tonnes*residualWedge.

Average, incremental and marginal environmental costs answer different questions. A ratio over a finite reduction is a step average, while marginal cost describes an additional unit; meaningful comparisons need common periods, boundaries and units.

Return externalCostPerTonne = socialCostPerTonne-privateCostPerTonne, residualWedge = externalCostPerTonne-chargedTaxPerTonne and totalResidual = tonnes*residualWedge.

When to use this tool

Use Waste Disposal External Cost Gap when checking a supplied environmental cost contribution or comparison.

How to use the tool and how it works

Enter tonnes, privateCostPerTonne, socialCostPerTonne, chargedTaxPerTonne. Use the units and conventions below.
Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
Read externalCostPerTonne, residualWedge, totalResidual. Use the output convention below.

Require nonnegative tonnes. Return externalCostPerTonne = socialCostPerTonne-privateCostPerTonne, residualWedge = externalCostPerTonne-chargedTaxPerTonne and totalResidual = tonnes*residualWedge. All cost and tax rates share currency per metric tonne and a common valuation basis.^[1]

Input field	Meaning and units	Accepted input
tonnes	Tonnes	Required. Finite number; minimum 0.
privateCostPerTonne	Private Cost Per Tonne	Required. Finite number.
socialCostPerTonne	Social Cost Per Tonne	Required. Finite number.
chargedTaxPerTonne	Charged Tax Per Tonne	Required. Finite number.

Output field	Interpretation	Returned shape
externalCostPerTonne	External Cost Per Tonne	Required. Finite number.
residualWedge	Residual Wedge	Required. Finite number.
totalResidual	Total Residual	Required. Finite number.

json

{
  "input": {
    "tonnes": 100,
    "privateCostPerTonne": 30,
    "socialCostPerTonne": 50,
    "chargedTaxPerTonne": 10
  },
  "output": {
    "externalCostPerTonne": 20,
    "residualWedge": 10,
    "totalResidual": 1000
  }
}

Limitations and assumptions

Signed costs, taxes and residuals are permitted. This compares caller-supplied terms and does not establish an efficient tax, measured external damage or the actual legal tax charge.
Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Assemble comparable costs and effects across the full baseline and project, and distinguish financial costs from social costs before ranking alternatives.

References

Calculation and input contract: environmental-economics/waste-disposal-external-cost-gap — tool.io

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