Municipal Waste Policies and Spillover Effects

Using a unique dataset of administrative data from municipalities in the Veneto region of Italy for 2010-2019, we develop a spatial econometric model to study the effects of two waste management policies: Door-to-Door collection and Pay-As-You-Throw tariff. We focus on the impact of these policies on waste sorting and accumulation, with particular attention to spatial spillovers. Both policies show similar effects on the outcome variables, leading to an increase in waste sorting and a reduction in waste accumulation; interestingly, we also find evidence of spatial spillovers. However, we identify unintended negative spillovers, where waste is diverted to neighboring municipalities with less stringent regimes, potentially undermining policy effectiveness. This study is the first to use a spatial econometric model to investigate how the adoption of a policy in a municipality affects waste production in surrounding areas, highlighting the need for coordinated decisions in the implementation of waste management policies.