Decentralisation in the Disposal of Waste: A Welfare Approach
Laura Levaggi  1@  , Rosella Levaggi  2, *@  , Carmine Trecroci@
1 : Faculty of Science and Technology, Free University of Bolzano-Bozen,  (UNIBZ)
Piazza Universita' 1, 39100 Bolzano-Bozen -  Italy
2 : Department of Economics, University of Brescia  (UNIBS)  -  Website
Via San Faustino 74B 25100 BRESCIA -  Italy
* : Corresponding author

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 flow of waste among 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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