Overlap in Tariff Policy and Waste Management Costs

What is it about?

This study explores how different tariff policies for waste management, such as incentive-based tariffs and pay as you throw (PAYT), impact costs and efficiency in Italian municipalities. These tools are designed to encourage better waste sorting and recycling by making people pay more for unsorted waste and rewarding good practices. By analyzing data from over 5,500 municipalities between 2016 and 2022, the research investigates whether combining these approaches leads to better results or unnecessary complications. The goal is to find ways to make waste management more effective, aligned with the principles of a circular economy.

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Photo by Towfiqu barbhuiya on Unsplash

Photo by Towfiqu barbhuiya on Unsplash

Why is it important?

Waste management is a critical issue for the environment, public health, and municipal budgets. Effective policies not only reduce waste and improve recycling rates but also lower costs for local governments and taxpayers. This study highlights how overlapping policies, if not carefully coordinated, can sometimes lead to inefficiencies or redundant efforts. However, it also shows that, under the right conditions, combining tools like PAYT and incentive-based tariffs can significantly reduce costs and improve performance. This is essential for meeting environmental targets, reducing landfill use, and fostering sustainable habits among citizens.

Perspectives