IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v81y2023ics0957178723000188.html
   My bibliography  Save this article

Designing circular economy-compliant municipal solid waste management charging schemes

Author

Listed:
  • Di Foggia, Giacomo
  • Beccarello, Massimo

Abstract

We simulate the performance of a gain-sharing charging scheme aimed at boosting the circularity of municipal solid waste management; its effectiveness is empirically tested by comparing it with the performances of unit pricing and standard schemes. When unit pricing charging schemes are in place, environmental performance significantly improves while the per capita cost slightly decreases. However, by narrowing the analysis to more comparable municipalities, there are circumstances in which the unit pricing and standard charging schemes are equivalent. Instead, under specific conditions, a rewarding charging scheme can outperform, thus making it a first-best option according to socioeconomic and geographical characteristics.

Suggested Citation

  • Di Foggia, Giacomo & Beccarello, Massimo, 2023. "Designing circular economy-compliant municipal solid waste management charging schemes," Utilities Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:juipol:v:81:y:2023:i:c:s0957178723000188
    DOI: 10.1016/j.jup.2023.101506
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178723000188
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2023.101506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pérez-López, Gemma & Prior, Diego & Zafra-Gómez, José Luis & Plata-Díaz, Ana María, 2016. "Cost efficiency in municipal solid waste service delivery. Alternative management forms in relation to local population size," European Journal of Operational Research, Elsevier, vol. 255(2), pages 583-592.
    2. Takehiro Usui & Kenji Takeuchi, 2014. "Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 245-271, June.
    3. 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.
    4. Bueno, Matheus & Valente, Marica, 2019. "The effects of pricing waste generation: A synthetic control approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 96, pages 274-285.
    5. Bel, Germà & Fageda, Xavier, 2010. "Empirical analysis of solid management waste costs: Some evidence from Galicia, Spain," Resources, Conservation & Recycling, Elsevier, vol. 54(3), pages 187-193.
    6. Yu-Kai Huang & Reid B. Stevens & W. Douglass Shaw, 2021. "Waste reduction and waste spillovers: evidence from unit-based pricing of municipal solid waste in Taiwan," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 10(3), pages 223-242, July.
    7. 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.
    8. Bohm, Robert A. & Folz, David H. & Kinnaman, Thomas C. & Podolsky, Michael J., 2010. "The costs of municipal waste and recycling programs," Resources, Conservation & Recycling, Elsevier, vol. 54(11), pages 864-871.
    9. 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.
    10. Farley, Joshua & Schmitt, Abdon & Burke, Matthew & Farr, Marigo, 2015. "Extending market allocation to ecosystem services: Moral and practical implications on a full and unequal planet," Ecological Economics, Elsevier, vol. 117(C), pages 244-252.
    11. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    12. Di Foggia, Giacomo & Beccarello, Massimo, 2021. "Designing waste management systems to meet circular economy goals: The Italian case," MPRA Paper 105959, University Library of Munich, Germany.
    13. Swart, Julia & Groot, Loek, 2015. "Waste management alternatives: (Dis)economies of scale in recovery and decoupling," Resources, Conservation & Recycling, Elsevier, vol. 94(C), pages 43-55.
    14. Juergen Morlok & Harald Schoenberger & David Styles & Jose-Luis Galvez-Martos & Barbara Zeschmar-Lahl, 2017. "The Impact of Pay-As-You-Throw Schemes on Municipal Solid Waste Management: The Exemplar Case of the County of Aschaffenburg, Germany," Resources, MDPI, vol. 6(1), pages 1-16, February.
    15. Lakhan, Calvin, 2016. "The relationship between municipal waste diversion incentivization and recycling system performance," Resources, Conservation & Recycling, Elsevier, vol. 106(C), pages 68-77.
    16. Beccarello, Massimo & Di Foggia, Giacomo, 2022. "Sustainable Development Goals Data-Driven Local Policy: Focus on SDG 11 and SDG 12," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(4), pages 1-11.
    17. Gregory T. Gundlach & Robert Frankel & Riley T. Krotz, 2019. "Competition Policy and Antitrust Law: Implications of Developments in Supply Chain Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 47-67, April.
    18. Geeta Gouri, 2020. "Convergence of competition policy, competition law and public interest in India," Russian Journal of Economics, ARPHA Platform, vol. 6(3), pages 277-293, September.
    19. 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.
    20. Leonardo J. Basso & Nicolás Figueroa & Jorge Vásquez, 2017. "Monopoly regulation under asymmetric information: prices versus quantities," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 557-578, August.
    21. Debnath, Somnath & Bose, S.K., 2014. "Exploring full cost accounting approach to evaluate cost of MSW services in India," Resources, Conservation & Recycling, Elsevier, vol. 83(C), pages 87-95.
    22. Weber, Gabriel & Cabras, Ignazio & Calaf-Forn, Maria & Puig-Ventosa, Ignasi & D'Alisa, Giacomo, 2019. "Promoting Waste Degrowth and Environmental Justice at a Local Level: The Case of Unit-Pricing Schemes in Spain," Ecological Economics, Elsevier, vol. 156(C), pages 306-317.
    23. 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.
    24. Massimo Beccarello & Giacomo Di Foggia, 2022. "Sustainable Development Goals Data-Driven Local Policy: Focus on SDG 11 and SDG 12," Administrative Sciences, MDPI, vol. 12(4), pages 1-11, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asif Iqbal & Abdullah Yasar & Amtul Bari Tabinda & Rafia Haider & Imran Ali Sultan & Aman Anwer Kedwii & Muhammad Murtaza Chaudhary & Muhammad Minhaj Sheikh & Abdul-Sattar Nizami, 2023. "Waste as Resource for Pakistan: An Innovative Business Model of Regenerative Circular Economy to Integrate Municipal Solid Waste Management Sector," Sustainability, MDPI, vol. 15(7), pages 1-29, April.
    2. Janina Kotlinska & Helena Zukowska & Marian Zukowski, 2023. "Management of Municipal Solid Waste in Poland:Issues of Balancing Financial Flows," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 657-679.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Romano, Giulia & Molinos-Senante, María & Carosi, Laura & Llanquileo-Melgarejo, Paula & Sala-Garrido, Ramón & Mocholi-Arce, Manuel, 2021. "Assessing the dynamic eco-efficiency of Italian municipalities by accounting for the ownership of the entrusted waste utilities," Utilities Policy, Elsevier, vol. 73(C).
    7. Mark Anthony Camilleri, 2020. "European environment policy for the circular economy: Implications for business and industry stakeholders," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1804-1812, November.
    8. Corrado lo Storto, 2021. "Eco-Productivity Analysis of the Municipal Solid Waste Service in the Apulia Region from 2010 to 2017," Sustainability, MDPI, vol. 13(21), pages 1-21, October.
    9. Roxana Lavinia Pacurariu & Sorin Daniel Vatca & Elena Simina Lakatos & Laura Bacali & Mircea Vlad, 2021. "A Critical Review of EU Key Indicators for the Transition to the Circular Economy," IJERPH, MDPI, vol. 18(16), pages 1-19, August.
    10. De Jaeger, Simon & Rogge, Nicky, 2014. "Cost-efficiency in packaging waste management: The case of Belgium," Resources, Conservation & Recycling, Elsevier, vol. 85(C), pages 106-115.
    11. Marques, Rui Cunha & da Cruz, Nuno Ferreira & Carvalho, Pedro, 2012. "Assessing and exploring (in)efficiency in Portuguese recycling systems using non-parametric methods," Resources, Conservation & Recycling, Elsevier, vol. 67(C), pages 34-43.
    12. Andreas Mayer & Willi Haas & Dominik Wiedenhofer & Fridolin Krausmann & Philip Nuss & Gian Andrea Blengini, 2019. "Measuring Progress towards a Circular Economy: A Monitoring Framework for Economy‐wide Material Loop Closing in the EU28," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 62-76, February.
    13. Llanquileo-Melgarejo, Paula & Molinos-Senante, María, 2022. "Assessing eco-productivity change in Chilean municipal solid waste services," Utilities Policy, Elsevier, vol. 78(C).
    14. Doussoulin, Jean Pierre & Bittencourt, Mariana, 2022. "How effective is the construction sector in promoting the circular economy in Brazil and France? : A waste input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 47-58.
    15. Leonzio Rizzo & Riccardo Secomandi, 2020. "Pay as you throw: evidence on the incentive to recycle," Working papers 88, Società Italiana di Economia Pubblica.
    16. Groot, Jim & Bing, Xiaoyun & Bos-Brouwers, Hilke & Bloemhof-Ruwaard, Jacqueline, 2014. "A comprehensive waste collection cost model applied to post-consumer plastic packaging waste," Resources, Conservation & Recycling, Elsevier, vol. 85(C), pages 79-87.
    17. Ek, Claes & Söderberg, Magnus, 2021. "Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities," Working Papers in Economics 804, University of Gothenburg, Department of Economics.
    18. Matteo Picchio, 2023. "Microchipped bags and waste sorting," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(1), pages 1-30, January.
    19. Glenn A. Aguilar‐Hernandez & Sebastiaan Deetman & Stefano Merciai & João F. D. Rodrigues & Arnold Tukker, 2021. "Global distribution of material inflows to in‐use stocks in 2011 and its implications for a circularity transition," Journal of Industrial Ecology, Yale University, vol. 25(6), pages 1447-1461, December.
    20. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:81:y:2023:i:c:s0957178723000188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.