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The Intended and Unintended Consequences of Taxing Waste

Author

Listed:
  • Tommaso Colussi

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

  • Matteo Romagnoli

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

  • Elena Villar

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

Abstract

This paper investigates the economic and environmental effects of pay-as-youthrow (PAYT) waste programs. Using a newly constructed longitudinal dataset of Italian municipalities and a staked-by-event design, we obtain three main findings: (i) PAYT programs significantly reduce total waste production; (ii) they further decrease waste management costs and leave municipal finances unaffected; (iii) they generate positive spillover effects on pro-environmental behaviors not directly targeted by the program. Survey evidence suggests that PAYT increases environmental awareness and concerns of the population in treated municipalities.

Suggested Citation

  • Tommaso Colussi & Matteo Romagnoli & Elena Villar, 2022. "The Intended and Unintended Consequences of Taxing Waste," DISCE - Working Papers del Dipartimento di Economia e Finanza def118, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie1:def118
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    File URL: http://dipartimenti.unicatt.it/economia-finanza-def118.pdf
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    References listed on IDEAS

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    Cited by:

    1. Chiara Punzo & Giulia Rivolta, 2022. "Money versus debt financed regime: Evidence from an estimated DSGE model," DISCE - Working Papers del Dipartimento di Economia e Finanza def120, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Valentina Colombo & Alessia Paccagnini, 2024. "Uncertainty and the Federal Reserve’s Balance Sheet Monetary Policy," DISCE - Working Papers del Dipartimento di Economia e Finanza def131, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Russell Davidson & Andrea Monticini, 2023. "Bootstrap Performance with Heteroskedasticity," DISCE - Working Papers del Dipartimento di Economia e Finanza def130, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    Waste Management; Taxation; Difference-in-Differences; Variation in Treatment Timing.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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