Negotiated Compensation for Solid-Waste Disposal Facility Siting: An Analysis of the Wisconsin Experience

Since enacting a unique facility siting law in 1981, Wisconsin has had unusual success in siting solid-waste management facilities. The law mandates a state-level technical review and licensing process and a local-level negotiation/arbitration process that deals with host community impacts and concerns. Data from the negotiated compensation agreements, a survey of facility proposers, and secondary data for the host communities are analyzed in relation to compensation levels. Concerns with community image and health risks and with facility management and equity issues are found to significantly and substantially increase negotiated compensation levels. In contrast, a focus on logistics and transportation concerns is associated with lower levels of compensation. Compensation increases with facility capacity but at a less than proportional rate. Higher levels of compensation are obtained by communities that accept compensation "in kind" in the form of free or reduced fees for host community waste disposal.