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The circular economy requires well-functioning waste management systems. In this regards, packaging waste management (PWM) plays a key role. The Italian PWM system bases on a consortium with operate in compliance with the extended producer responsibility. The key financial mechanism ruling the functioning of the system is the so-called environment contribution. This paper draws up potential socioeconomic implications arising from higher recycling targets in the medium-term. Two scenarios are discussed: the baseline, which simulates the environmental contribution according to the current recycling rate along with the reference that reflects higher goals. Results suggest that higher recycling targets are associated with positive effects on job creation, production and value added by virtue of both direct and indirect effects. The application of the model has demonstrated significant positive socioeconomic impacts achievable when defining new policies and regulations for the sector. Although limited to Italy, this paper serves as a reference for policy makers since environmental legislation and especially waste management policy deserve careful consideration in the light of the polluter pays principle and shared responsibility.

Waste management capacity plays a prominent role in complying with circular economy goals, such as reducing municipal waste disposal by landfilling to 10%. We first analyze the imbalance in municipal solid waste management across Italy by estimating the quantities of waste to be treated using technologies different from those currently in use. Subsequently, we estimate the impact that a system compliant with circular economy goals would have on the cost of waste management. Our empirical analyses are based on an econometric method. The results suggest that Italy could reduce the use of landfill by 11.5%, resulting in a 13% reduction in mechanical-biological treatment. The waste-to-energy capacity would rise by 4.6% compared to the current situation, while the organic fraction treatment capacity would increase by 8.3%. Besides the positive impact on the environment, the potential annual savings on the cost of waste management could reach 0.07%, or 0.27% when the phase corresponding to treatment and disposal is considered. We provide insights into the design of more efficient national waste management plans using a novel approach based on best performers.

The municipal solid waste collection and disposal service is a key element of the European strategy aimed at moving towards a circular economy. An efficient municipal solid waste collection and disposal is closely related to both lower waste tax and higher welfare of the interested population. In Italy, the lack of a centralized regulatory framework has determined heterogeneous performances of sector operators across the country. Firstly, we will be estimating the productive efficiency in different optimal territorial areas and secondly we will be forecasting the economic benefits that would arise under a new regulatory regime. Our approach combines the well-known yardstick competition and the price-cap mechanisms. Results suggest that if all territorial areas converged to the most efficient ones, a potential saving between 12% and 19% emerges, i.e., up to €2bn savings out of €10.05bn total tax revenue in 2015.

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