Waste Disposal and Decentralisation: A Welfare Approach

What is it about?

Abstract In this article we analyse incentives, equilibria and implications of the governance framework for the disposal of municipal solid waste. The key decisions revolve around the mobility of waste across regions and the externalities (mainly pollution) associated with its final disposal, be it via incineration or landfill. When the regions are characterised by different levels of efficiency in the final treatment of waste, a certain degree of mobility might allow to reap the benefits of higher efficiency. On the other hand, as transportation and environmental costs implied by mobility and concentration become significant, a trade-off emerges. Our model evaluates the implications of this trade-off for the optimal degree of decentralisation in waste management

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