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Market Structure of Urban Waste Treatment and Disposal: Empirical Evidence from the Italian Industry

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  • Giacomo Di Foggia

    (Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy)

  • Massimo Beccarello

    (Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy)

Abstract

In light of the organizational dynamics of services of economic interest, the regulation of municipal solid waste management is a critical issue to deal with so as to achieve sustainability goals in the coming decades. The European circular economy targets limit the share of municipal waste in landfills to a maximum of 10% by 2035. Consequently, waste-to-energy plants may temporarily become the primary option for residual unsorted waste. The municipal waste management chain comprises two consequential stages: collection and transport, and the treatment and disposal stage, which characterizes as an oligopolistic market structure. After defining the relevant market and calculating market concentration measures, we analyze market power in the treatment and disposal of non-recyclable mixed waste, also known as residual waste. Our analyses are based on empirical data using well-known market concentration indices such as the Herfindahl–Hirschman index and concentration ratios. We report the results of three different market concentration scenarios based on alternative geographic and product market definitions. Considering only waste-to-energy as a product market, we present a situation of moderate concentration, typically involving the attention of competition authorities. On the contrary, considering both options as a single product market, no relevant evidence emerges due to the significant share of waste sent to landfills in 2019, i.e., 20.1% of the total municipal solid waste generated in Italy. Implications for future studies consist of new detailed information on the municipal waste treatment market structure in one of the leading European countries that may prompt comparative studies. Policy implications are derived from the possibility of taking cues from this paper to envisage appropriate regulatory models for an evolving sector in which market spaces are increasing.

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  • Giacomo Di Foggia & Massimo Beccarello, 2021. "Market Structure of Urban Waste Treatment and Disposal: Empirical Evidence from the Italian Industry," Sustainability, MDPI, vol. 13(13), pages 1-12, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7412-:d:587233
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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.
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    2. Simon Pröll & Heidelinde Grüneis & Franz Sinabell, 2022. "Market Concentration, Producer Organizations, and Policy Measures to Strengthen the Opportunities of Farmers for Value Addition—Empirical Findings from the Austrian Meat Supply Chain Using a Multi-Met," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    3. Ugo Arrigo & Massimo Beccarello & Giacomo Di Foggia, 2023. "Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis," Administrative Sciences, MDPI, vol. 13(12), pages 1-14, December.
    4. Massimo Beccarello & Giacomo Di Foggia, 2023. "Efficient scale and scope of business models used in municipal solid waste management," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 32(4), pages 492-508, April.
    5. Tomasz Jedynak & Krzysztof Wąsowicz, 2021. "The Relationship between Efficiency and Quality of Municipally Owned Corporations: Evidence from Local Public Transport and Waste Management in Poland," Sustainability, MDPI, vol. 13(17), pages 1-30, August.

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