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Municipal Waste Collection: Market Competition and the EU Policy

Author

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  • Reggiani, Carlo
  • Silvestri, Francesco
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

  • Reggiani, Carlo & Silvestri, Francesco, 2016. "Municipal Waste Collection: Market Competition and the EU Policy," Climate Change and Sustainable Development 230598, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:230598
    DOI: 10.22004/ag.econ.230598
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    References listed on IDEAS

    as
    1. Francesco Silvestri, 2014. "Competition and Environmental Externalities in the European Market of Municipal Waste," SEEDS Working Papers 1114, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.
    2. 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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    5. Francesco Silvestri & Stefano Ghinoi, 2015. "Municipal Waste Selection and Disposal: Evidences from Lombardy," Working Papers 2015.14, Fondazione Eni Enrico Mattei.
    6. 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.
    7. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    8. D'Alisa, Giacomo & Burgalassi, David & Healy, Hali & Walter, Mariana, 2010. "Conflict in Campania: Waste emergency or crisis of democracy," Ecological Economics, Elsevier, vol. 70(2), pages 239-249, December.
    9. Buchanan, James M, 1969. "External Diseconomies, Corrective Taxes, and Market Structure," American Economic Review, American Economic Association, vol. 59(1), pages 174-177, March.
    10. 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.
    11. 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.
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    Cited by:

    1. Francesco Silvestri, 2017. "Competition and environmental quality as conflicting objectives: the case of the European municipal waste industry," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 491-513, December.
    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.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    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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