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Municipal strategies, fiscal incentives and co-production in urban waste management

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  • Fiorillo, Fabio
  • Merkaj, Elvina

Abstract

We present a theoretical model examining household, firm, and municipal strategies in urban waste management. The model incorporates co-production by households and firms and introduces a private collector as a municipal competitor in waste management. Households can only dispose of recycled waste through the municipal system, while firms can choose between municipal waste management and selling recycled waste to the private collector. The model resolves a sequential game between the municipality and firms, with the municipality setting rules on recycling capital and tax incentives, while firms and households decide on their optimal waste disposal practices.

Suggested Citation

  • Fiorillo, Fabio & Merkaj, Elvina, 2024. "Municipal strategies, fiscal incentives and co-production in urban waste management," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:soceps:v:92:y:2024:i:c:s0038012124000168
    DOI: 10.1016/j.seps.2024.101817
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