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The impact of a gain-sharing cost-reflective tariff on waste management cost under incentive regulation: The Italian case

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  • Di Foggia, Giacomo
  • Beccarello, Massimo

Abstract

In many European countries, waste tariff systems are being updated to take account of the consolidation of circular economy objectives. We forecast the impact of a gain-sharing cost-reflective tariff on waste management sustainability. The cost-reflective tariff generates an economic surplus for society, while meeting environmental goals. Based on empirical data we developed two scenarios. The baseline scenario formalizes the current Italian tariff scheme, while the intervention scenario includes users' response to a gainsharing policy. By optimizing the tariff structure, society would benefit from a surplus that could be reached setting an asymmetric regulation based on current waste management efficiency level. Our results will potentially be a basis for directing waste management policy as per tariff design

Suggested Citation

  • Di Foggia, Giacomo & Beccarello, Massimo, 2020. "The impact of a gain-sharing cost-reflective tariff on waste management cost under incentive regulation: The Italian case," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 265.
    • Handle: RePEc:zbw:espost:229163
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    References listed on IDEAS

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    1. Guerriero, Carmine, 2013. "The political economy of incentive regulation: Theory and evidence from US states," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 91-107.
    2. Massimo BECCARELLO & Giacomo DI FOGGIA, 2016. "Economic Analysis of EU Strengthened Packaging Waste Recycling Targets," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 7(8), pages 1930-1941.
    3. Di Foggia, Giacomo & Beccarello, Massimo, 2018. "Improving efficiency in the MSW collection and disposal service combining price cap and yardstick regulation: The Italian case," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 79, pages 223-231.
    4. Leon Chu & David Sappington, 2012. "Designing optimal gain sharing plans to promote energy conservation," Journal of Regulatory Economics, Springer, vol. 42(2), pages 115-134, October.
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    7. Alexandre Tisserant & Stefan Pauliuk & Stefano Merciai & Jannick Schmidt & Jacob Fry & Richard Wood & Arnold Tukker, 2017. "Solid Waste and the Circular Economy: A Global Analysis of Waste Treatment and Waste Footprints," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 628-640, June.
    8. Di Foggia, Giacomo, 2018. "Smart metering projects: an interpretive framework for successful implementation," OSF Preprints zcf34, Center for Open Science.
    9. Brown, Toby & Faruqui, Ahmad & Grausz, Léa, 2015. "Efficient tariff structures for distribution network services," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 139-149.
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    Cited by:

    1. Di Foggia, Giacomo & Beccarello, Massimo, 2021. "Drivers of municipal solid waste management cost based on cost models inherent to sorted and unsorted waste," SocArXiv s6q3m, Center for Open Science.
    2. Elena Cristina Rada & Elena Romenovna Magaril & Marco Schiavon & Anzhelika Karaeva & Maxim Chashchin & Vincenzo Torretta, 2020. "MSW Management in Universities: Sharing Best Practices," Sustainability, MDPI, vol. 12(12), pages 1-15, June.
    3. Di Foggia, Giacomo & Beccarello, Massimo, 2023. "Designing circular economy-compliant municipal solid waste management charging schemes," Utilities Policy, Elsevier, vol. 81(C).
    4. Mingyue Li & Pujie Zhao & Lianbei Wu & Kai Chen, 2021. "Effects of Value Perception, Environmental Regulation and Their Interaction on the Improvement of Herdsmen’s Grassland Ecological Policy Satisfaction," IJERPH, MDPI, vol. 18(6), pages 1-23, March.

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    More about this item

    Keywords

    Environmental management; Incentive regulation; Price cap; Waste fee; Waste management; Waste policy;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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