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Municipal Solid Waste, Market Competition and the EU Policy

Author

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  • Carlo Reggiani

    (University of Manchester)

  • Francesco Silvestri

    (University of Ferrara)

Abstract

Two of the main pillars of the EU solid waste policy are the Proximity Principle and the Self-Sufficiency Principle. According to those, waste should be disposed as close as possible to where it has been produced. A likely effect of such provision is to prevent competition from neighbouring areas and increase the market power of local disposers, with possible undesirable consequences for other firms in the vertical chain. We show through a simple spatial model that one additional effect of the Proximity Principle and of the Self-Sufficiency Principle is to provide an incentive to collectors and waste producers to increase the amount of separated waste.

Suggested Citation

  • Carlo Reggiani & Francesco Silvestri, 2018. "Municipal Solid Waste, Market Competition and the EU Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 457-474, October.
    • Handle: RePEc:kap:enreec:v:71:y:2018:i:2:d:10.1007_s10640-017-0165-0
    DOI: 10.1007/s10640-017-0165-0
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    More about this item

    Keywords

    EU municipal waste policy; Self-Sufficiency Principle; Proximity Principle;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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