18. Evaluation of domestic solid waste collection fee mechanism in Xuan Dinh ward, Hanoi city from an environmental economics perspective and proposals for improvement towards the circular economy

Abstract

In the context of rapid urbanization, domestic solid waste management in major cities like Hanoi faces numerous challenges, particularly regarding financial sustainability and environmental efficiency. Xuan Dinh Ward, with its high urbanization rate and population density, is experiencing increasing pressure from waste generation. This study evaluates the current domestic solid waste collection fee mechanism in Xuan Dinh Ward from an environmental economics perspective by conducting field surveys of 50 households, combined with Cost-Benefit Analysis (CBA) and multi-criteria decision matrix methods. The results indicate that the current flat-rate fee mechanism, at approximately 24,000 VND/person/month, covers only about 49.7 % of actual costs and eliminates incentives for waste reduction and source separation. Based on these findings, the study proposes a roadmap to transition to a Pay-As-You-Throw (PAYT) mechanism integrated with the circular economy, including implementing a two-part fee structure and formalizing the informal collection sector to improve management efficiency and ensure social equity.