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Effectiveness and efficiency of European Regional Development Fund on separate waste collection: evidence from Italian regions by a stochastic frontier approach

Author

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  • Massimiliano Agovino

    () (University of Naples “Parthenope”)

  • Mariaconcetta Casaccia

    () (University “G. D’Annunzio” of Chieti-Pescara)

  • Alessandro Crociata

    () (University “G. D’Annunzio” of Chieti-Pescara)

Abstract

Abstract The purpose of the present paper is to analyze the results of the impact of European Regional Development Fund (ERDF) in Convergence regions over the 2007–2013 on separate collection rate of Italian regions. The aim is twofold: propose a groundbreaking analysis that allows us to control both for the effectiveness of the Regulation (EC) No. 1080/2006, by a Difference in differences equation (DID), and the Regions’ efficiency in the separate collection process, by a stochastic frontier analysis (SFA). Specifically, the SFA allows us to model the DID equation in order to take account the regions’ efficiency in the separate collection process in terms of institutional quality. In particular, we use a panel with two dimensions: temporal—9 yearly observations from 2004 to 2012; and cross-sectional—20 regions. The estimates suggest that ERDF have not contributed to reducing the structural divide in Italy and its managerial slack has triggered in the failure of the convergence objective. Policy implications are discussed.

Suggested Citation

  • Massimiliano Agovino & Mariaconcetta Casaccia & Alessandro Crociata, 2017. "Effectiveness and efficiency of European Regional Development Fund on separate waste collection: evidence from Italian regions by a stochastic frontier approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(1), pages 105-137, April.
  • Handle: RePEc:spr:epolit:v:34:y:2017:i:1:d:10.1007_s40888-016-0050-2
    DOI: 10.1007/s40888-016-0050-2
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    Keywords

    Government policy; Recycling; Panel data models; Difference-in-differences treatment effects; Stochastic frontier analysis; Structural fund;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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