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Municipal Waste Collection: Market Competition and the EU Policy

Author

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  • Carlo Reggiani

    (School of Social Sciences - Economics, University of Manchester)

  • Francesco Silvestri

    (Department of Economics and Management, University of Ferrara)

Abstract

Two of the main pillars of the EU waste collection policy are the Proximity Principle and Self-Sufficiency Principle. According to those, waste should be disposed as close as possible to where it has been produced. The effect of such provision is to 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 effect of the Proximity Principle and 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, 2015. "Municipal Waste Collection: Market Competition and the EU Policy," Working Papers 2015.90, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2015.90
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    References listed on IDEAS

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    1. Robin R. Jenkins & Kelly B. Maguire & Cynthia L. Morgan, 2004. "Host Community Compensation and Municipal Solid Waste Landfills," Land Economics, University of Wisconsin Press, vol. 80(4).
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    3. Di Corato, Luca & Montinari, Natalia, 2014. "Flexible waste management under uncertainty," European Journal of Operational Research, Elsevier, vol. 234(1), pages 174-185.
    4. Silvestri, Francesco & Ghinoi, Stefano, 2015. "Municipal Waste Selection and Disposal: Evidences from Lombardy," Climate Change and Sustainable Development 198713, Fondazione Eni Enrico Mattei (FEEM).
    5. Buchanan, James M, 1969. "External Diseconomies, Corrective Taxes, and Market Structure," American Economic Review, American Economic Association, vol. 59(1), pages 174-177, March.
    6. Caplan, Arthur & Grijalva, Therese & Jackson-Smith, Douglas, 2007. "Using choice question formats to determine compensable values: The case of a landfill-siting process," Ecological Economics, Elsevier, vol. 60(4), pages 834-846, February.
    7. Crocker, Keith J & Masten, Scott E, 1996. "Regulation and Administered Contracts Revisited: Lessons from Transaction-Cost Economics for Public Utility Regulation," Journal of Regulatory Economics, Springer, vol. 9(1), pages 5-39, January.
    8. Choe, Chongwoo & Fraser, Iain, 1999. "An Economic Analysis of Household Waste Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 234-246, September.
    9. Massarutto, Antonio, 2007. "Municipal waste management as a local utility: Options for competition in an environmentally-regulated industry," Utilities Policy, Elsevier, vol. 15(1), pages 9-19, March.
    10. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39, pages 137-137.
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    Cited by:

    1. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0067-1 is not listed on IDEAS
    2. Giuseppe Lucio Gaeta & Stefano Ghinoi & Francesco Silvestri, 2017. "Municipal performance in waste recycling: an empirical analysis based on data from the Lombardy region (Italy)," Letters in Spatial and Resource Sciences, Springer, vol. 10(3), pages 337-352, October.

    More about this item

    Keywords

    EU Municipal Waste Policy; Self-Sufficiency Principle; Proximity Principle;

    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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