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Free municipal waste trade as an incentive to recycling. A theoretical study
Titolo Rivista:  ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori: Antonio Massarutto, Francesco Silvestri
Anno di pubblicazione: 2015 Fascicolo: 3 Lingua: Inglese
Numero pagine: 19 P. 89-107 Dimensione file: 739 KB
DOI: 10.3280/EFE2015-003005
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più, clicca qui e qui


According to the Self-Sufficiency and Proximity Principle (SSP), municipal waste (MW) disposal has to be confined within delimited territorial zones, with no trade allowed. The justification is usually the need to make each community aware of its environmental responsibility and discourage diversion of MW to "waste havens". In this paper, we explore the possible benefits associated with some opening to MW treatment service trade. We assume that some areas are equipped with MW treatment facilities, while others are not. We demonstrate, under standard assumptions, that removing SSP and allowing trade of MW disposal services between such regions may foster MW selection in both areas. This is true not only when disposal capacity is constrained, so that a part of the original demand for MW diversion is unsatisfied, but also when it is unconstrained and can accommodate all the residual unsorted MW, provided that the design of rewarding schemes is appropriate. On the contrary, if both districts were equipped with a facility, the same would not be true, and each one would be more willing to exploit the plant’s capacity before engaging in efforts to reduce waste. JEL classification: olid waste, waste management, disposal facilities, waste trade, regulated markets.



Keywords: L43, L99, Q53, R11


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Antonio Massarutto, Francesco Silvestri, Free municipal waste trade as an incentive to recycling. A theoretical study in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 3/2015, pp. 89-107, DOI:10.3280/EFE2015-003005

     


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