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Economic regulation of waste management utilities: Taking stock of the Italian reform

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  • Antonio Massarutto

Abstract

Since 2018, the economic regulation of Italian municipal waste utilities is attributed to an inde-pendent authority, ARERA. This original model is supposed to facilitate the transition towards the circular economy paradigm, that associates demanding public service obligations to recy-cling and valorization of waste, in the context of a vertically-integrated industry with a wide differentiation of conditions and maturity throughout the country. This paper analyzes the ex-perience of the first two years and discusses the outcomes reached. We start from a discussion of the fundamental economic characteristics of the waste management industry and of how the circular economy paradigm has radically changed it, raising rather new regulatory issues. We next analyze the structure of the Italian municipal waste management industry and its trajecto-ries of evolution face to the challenge to achieve the demanding targets imposed by the EU Circular Economy Package. We present then the regulatory approach adopted by ARERA in the first regulatory period (2020-2021) and discuss its advantages and drawbacks, based on the experience made in the early phase of its implementation.

Suggested Citation

  • Antonio Massarutto, 2020. "Economic regulation of waste management utilities: Taking stock of the Italian reform," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2020(2), pages 5-33.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2020-002001
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    References listed on IDEAS

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    1. Barbara ANTONIOLI & Antonio MASSARUTTO, 2012. "The Municipal Waste Management Sector In Europe: Shifting Boundaries Between Public Service And The Market," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(4), pages 505-532, December.
    2. Massarutto, Antonio, 2007. "Municipal waste management as a local utility: Options for competition in an environmentally-regulated industry," Utilities Policy, Elsevier, vol. 15(1), pages 9-19, March.
    3. Antonio Massarutto, 2019. "Italian waste in the circular economy: A agenda for industry regulators in Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(1), pages 9-48.
    4. Anna Moretto & Marinella Favot & Antonio Massarutto, 2019. "Incinerators in Italy: An overview in the light of the Circular Economy model," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(1), pages 69-88.
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    More about this item

    JEL classification:

    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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