Palau is renowned for its pristine natural environment which supports tourism, fishing and extractive industries and the lifestyles of residents. Effective solid waste management is crucial to ensuring the ongoing quality of Palau’s natural environment. This report estimates the economic cost of solid waste related pollution to Palau. It asks the question: What costs could be avoided in the absence of solid waste pollution in Palau? The result is an estimate of opportunity cost, which is the value of financial resources that could be ‘freed’ for investment elsewhere were they not being spent to manage and mitigate solid waste pollution problems.