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Decentralisation and waste flows: A welfare approach.

Laura Levaggi1, Rosella Levaggi2, Carmine Trecroci2

  • 1Faculty of Science and Technology, Free University of Bolzano-Bozen, Italy.

Journal of Environmental Management
|April 22, 2018
PubMed
Summary

This study analyzes municipal solid waste disposal governance, finding that while waste mobility can improve efficiency, decentralization risks environmental harm. Regulators can use transfer pricing and proximity principles to enhance welfare.

Keywords:
DecentralisationEnvironmental qualityWaste managementWaste mobilityWelfare

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Area of Science:

  • Environmental Economics
  • Public Policy
  • Waste Management

Background:

  • Municipal solid waste (MSW) governance involves complex decisions on waste flow and disposal externalities.
  • Regional disparities in waste treatment efficiency necessitate exploring mobility benefits.

Purpose of the Study:

  • To analyze incentives, equilibria, and implications of MSW governance with waste mobility.
  • To compare centralized versus decentralized institutional settings for waste management.
  • To identify regulatory tools for welfare improvement.

Main Methods:

  • N-Region economic model incorporating waste mobility.
  • Analysis of centralized and decentralized decision-making frameworks.
  • Examination of externalities and efficiency differentials.

Main Results:

  • Waste mobility can leverage regional efficiency differences for better outcomes.
  • Decentralized waste management with mobility can lead to sub-optimal environmental protection.
  • Transfer prices and proximity principles are identified as effective regulatory tools.

Conclusions:

  • Optimizing MSW governance requires balancing mobility benefits with centralized oversight.
  • Careful design of regulatory instruments is crucial for achieving environmental and economic welfare.
  • The proximity principle and transfer pricing offer viable solutions for improved waste management policies.