David Smith

Date of Award

2014

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Coe, Richard

Keywords

Compost, New College of Florida, Benefit-Cost Analysis

Area of Concentration

Economics

Abstract

This thesis is a cost-benefit analysis of the compost system at New College of Florida. During the spring semester of 2013, data were collected regarding the amount of food that was diverted from the waste stream and composted, as well as the amount of finished compost produced. Benefits to the system were calculated using the known cost of trash removal for the school, the value of the finished compost, and the estimated value of methane sequestration that occurs during the compost process. The cost of the system and operating expenses were then deducted from the benefits. The conclusion found that the current compost system is not economically efficient. Assuming a 0% discount rate, the system’s costs exceeded benefits by $1,706.75. A second cost benefit analysis was then conducted, which included potential improvements and future expansion for the system. This second analysis also assumed a 0%, 2%, and 4% discount rate to provide a lower, middle, and upper estimate of benefits that would accrue from the system. The analysis concluded that the compost system could potentially be economically efficient, with benefits exceeding costs by the amount of $39,197.76 assuming a 0% discount rate or $11,483.97 assuming a 4% discount rate.

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