FEEM working papers "Note di lavoro" series
2015 .090

Municipal Waste Collection: Market Competition and the EU Policy


Authors: Carlo Reggiani, Francesco Silvestri
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Keywords: EU Municipal Waste Policy, Self-Sufficiency Principle, Proximity Principle
JEL n.: Q53, L13, L44

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. 

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Suggested citation: Reggiani, C., F. Silvestri, (2015), 'Municipal Waste Collection: Market Competition and the EU policy', Nota di Lavoro 90.2015, Milan, Italy: Fondazione Eni Enrico Mattei
 

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