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The Social Efficiency Of Pay-As-You-Throw Schemes For Municipal Solid Waste Reduction: A Cost-Benefit Analysis Of Four Financial Incentive Schemes Applied In Switzerland

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  • LORIS ALEXANDER MANNI

    (Repubblica e Cantone Ticino, Ufficio Delle Industrie, Della Sicurezza e Della Protezione del Suolo, Bellizona, Ticino, Switzerland)

  • HENS A. C. RUNHAAR

    (Copernicus Institute of Sustainable Development, Utrecht University, Utrecht, The Netherlands)

Abstract

The efficient management of waste is important in order to reduce negative externalities, such as air, water and soil pollution. A major challenge is the increasing amount of municipal solid waste (MSW) produced by households. Municipalities around the world have implemented pay-as-you-throw (PAYT) schemes in order to incentivise the reduction of MSW. Although the literature has shown that these financial incentive schemes are often effective, they are criticised in practice for raising costs to society. This paper aims to assess whether or not this criticism is correct. A social cost-benefit analysis was conducted in order to take into account economic, environmental and social costs and benefits. Our results show that PAYT schemes reduce overall social costs and therefore positively contribute to the social efficiency of a municipality. The above criticism is not supported by empirical evidence, but in practice forms a barrier to the implementation of PAYT schemes. In order to remove this barrier, we encourage the readers of JEAPM to disseminate our findings to a wider audience.

Suggested Citation

  • Loris Alexander Manni & Hens A. C. Runhaar, 2014. "The Social Efficiency Of Pay-As-You-Throw Schemes For Municipal Solid Waste Reduction: A Cost-Benefit Analysis Of Four Financial Incentive Schemes Applied In Switzerland," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-32.
  • Handle: RePEc:wsi:jeapmx:v:16:y:2014:i:01:n:s146433321450001x
    DOI: 10.1142/S146433321450001X
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    References listed on IDEAS

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    1. Alessandro Bucciol & Natalia Montinari & Marco Piovesan, 2015. "Do Not Trash the Incentive! Monetary Incentives and Waste Sorting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(4), pages 1204-1229, October.
    2. Ida Ferrara, 2008. "Waste Generation and Recycling," OECD Journal: General Papers, OECD Publishing, vol. 2008(2), pages 19-58.
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    1. Margallo, M. & Dominguez-Ramos, A. & Aldaco, R. & Bala, A. & Fullana, P. & Irabien, A., 2014. "Environmental sustainability assessment in the process industry: A case study of waste-to-energy plants in Spain," Resources, Conservation & Recycling, Elsevier, vol. 93(C), pages 144-155.
    2. Korostova, Anna, 2020. "Sustainable strategy for the waste management in Turkmenistan," UFZ Discussion Papers 5/2020, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    3. Weber, Gabriel & Cabras, Ignazio & Calaf-Forn, Maria & Puig-Ventosa, Ignasi & D'Alisa, Giacomo, 2019. "Promoting Waste Degrowth and Environmental Justice at a Local Level: The Case of Unit-Pricing Schemes in Spain," Ecological Economics, Elsevier, vol. 156(C), pages 306-317.

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