Waste management and Italian provinces: Why pay more for less?

Area of Science:

• Environmental Economics
• Waste Management Policy
• Regional Analysis

Background:

• Total Waste Management Costs (TWMC) vary significantly across Italian NUTS 3 provinces.
• Northern Italy generally exhibits higher efficiency and circularity in waste management compared to central and southern regions.
• The drivers of these cost differences, whether socioeconomic or policy-related, require detailed investigation.

Purpose of the Study:

• To investigate the impact of waste treatment methods and separation policies on TWMC at the NUTS 3 level in Italy (2015-2018).
• To analyze the effectiveness of circular economy policies versus waste separation initiatives on overall waste management expenditures.
• To determine the conditions under which circular policies can mitigate cost increases associated with separation policies.

Main Methods:

• Panel data models with provincial and regional fixed effects were employed.
• Total Waste Management Costs (TWMC) served as the dependent variable.
• Key independent variables included a composite policy indicator (favoring circularity and waste-to-energy) and the ratio of separated waste to total municipal waste.

Main Results:

• A composite indicator of circular policies was found to reduce TWMC.
• Waste separation policies were associated with an increase in TWMC.
• Significant improvements in the composite circular policy performance are needed to counteract the cost increases driven by separation policies.

Conclusions:

• Implementing circular economy strategies can lower overall waste management costs.
• Increased focus on waste separation alone, without robust circular policies, may lead to higher TWMC.
• An incomplete or suboptimal pursuit of circular policies may inadvertently drive up local waste management costs.