Budget costs are incurred by waste agents, for example households,
as waste generators or technologies/facilities operating
within the waste system. Budget costs can be either ‘‘one-off’’
occurring once in the lifetime of a technology (for example capital
investment or back-end costs), or recurring (for example operational and maintenance costs). In Conventional and
Environmental LCCs, budget costs are accounted for in factor prices
(market prices excluding transfers), whereas budget costs in
Societal LCCs are accounted for in accounting prices (also called
‘‘shadow prices’’ or ‘‘opportunity’’ costs and representing the willingness
to pay for a good or service). To translate factor prices into
accounting prices different methods can be applied such as the Net
Tax Factor (NTF) proposed by the Danish Ministry of Finances. This
factor can be used in the same way as applied.