USE OF ECONOMIC INSTRUMENTS AND
WASTE MANAGEMENT PERFORMANCES
Use of economic instruments and waste management performances
The legislative background: the selective urban waste collection
With reference to waste management, Italy is divided into several territorial
partitions generally corresponding to the administrative precincts of the
Provinces. Every territorial partition is composed of a certain number of
Municipalities.
[art. 200, D.lgs. 152/2006; art. 2, paragraph 38, L. 244/2007]
In each territorial partition, the objective of selective waste collection is 65% to
be reached by the end of 2012. The Municipalities whose bad performances
don’t allow to obtain this result are subject to a financial penalty consisting in an
addition of 20% on the special tax on the price paid for the final disposal of
waste.
[art. 205, D.lgs. 152/2006]
Use of economic instruments and waste management performances
The legislative background: the definition of urban waste
According to their origin, waste are classified as urban or special.
Urban waste are those:
a) originated by households;
b) unhazardous originated by other economic operators (such as industry,
artisans, commerce and trade, agriculture, tertiary) when they meet
the qualitative and quantitative requisites fixed by the Municipality so
that they must be similar in quality and quantity to urban ones;
c) abandoned on the public soil;
d) vegetable originated by gardens and green areas’ care;
e) from cemeteries.
Use of economic instruments and waste management performances
The legislative background: the fiscal system concerning urban waste
management
Households and the other producers of urban waste are compelled to pay a
rate which contributes to finance the management of urban waste. This rate is
collected by the Municipality.
There are two kinds of municipal charging:
a) the tax;
b) the tariff or PAYT calculated according to two different methods, the
“presumptive” and the “precise” ones.
Use of economic instruments and waste management performances
The legislative background: the fiscal system concerning urban waste
management
The tax is regulated by the Decree n. 507 of 1993 but it is going to be gradually
substituted by the tariff.
The tariff was introduced in the Italian fiscal system in 1997 for the first time.
The method of calculation is regulated by the Decree n. 158 of 1999. The tariff
is not compulsory, but it can be enforced voluntarily by the Municipality.
The deadline for the complete transition from the tax to the tariff has not been
fixed yet. It has to be fixed by the Ministry of the Environment according to
article 238 of the Decree n. 152 of 2006.
Use of economic instruments and waste management performances
The legislative background: the difference between the tax and the tariff
The tax is calculated multiplying the surface (in square meters) of the house
or other places (i.e. offices, shops, restaurants, schools, museums and so on)
by a rate expressed in €/m2.
This rate (€/m2) is generally the same for all households independently on
the number of persons of which each family is composed, while it is
differentiated for non-household users depending on the category of the
economic activity carried out.
In both cases, there is no correspondence between the tax and the real
quantity of waste produced and given to the public system of management
→ no efficacy in preventing waste production.
Use of economic instruments and waste management performances
The legislative background: the composition of the tariff
The tariff is composed of:
a)a fix part which is determined according to the essential components of the
public service of waste management especially referring to the investments and
their amortization;
b)a variable part which is determined according to (i) the quantity of waste
given to the public service of management, (ii) the standard of the service
offered by the Municipality, (iii) the size of the costs of waste management.
Use of economic instruments and waste management performances
The legislative background: the costs financed by the tariff
Fix part (FP)
Variable part (VP)
Description of the costs
A.1) Costs for the
management of the cycle of
services referred to residual
unsorted waste – CGIND
A) Operating costs of
management – CG
A.2) Costs for the
management of the cycle of
services referred to recyclable
sorted waste – CGD
B) Common costs – CC
C) Costs of the capital – CK
Costs for public roads and
squares’ sweeping – CSL
FP
Costs for unsorted waste’s
collection and transport – CRT
VP
Costs for unsorted waste’s
treatment and disposal – CTS
VP
Other costs – AC
FP
Costs for selective waste
collection – CRD
VP
Costs for recyclable sorted
waste’s treatment – CTR
(deducted the earnings and
revenues for the sale of
recyclable waste)
VP
B.1) Administrative costs (tariff assessment and collection, fiscal
cases) – CARC
FP
B.2) Overhead costs of management – CGG (i.e. communicative
and informative campaigns)
FP
B.3) Other common costs – CCD
FP
Amortizations, funds, reserves, interests
FP
Use of economic instruments and waste management performances
The so called “presumptive” method
The presumptive method is based on the estimated quantity of urban waste
produced and given by the ratepayers to the public system of management.
ratepayers
class
households
class
non-households
six categories
depending on the number of persons in
the family (from one to six or more
persons)
thirty or twenty-one categories
according to the economic activity
carried out (i.e. museums, schools, nonfood shops, food shops, restaurants,
factories and so on).
Use of economic instruments and waste management performances
The so called “presumptive” method
The fix part is calculated in proportion to the surface (in square meters) of the
house or the other places subject to the tariff. Equalization of the surfaces
through potential waste production indexes.
The variable part is calculated in proportion to the estimated (i.e. presumptive)
quantity of waste given to the public system of management. To each category
is associated an index expressing the expected (i.e. potential) production of
urban waste is associated.
The indexes are indicated by the law.
Use of economic instruments and waste management performances
The so called “precise” method or PAYT
The precise method aims at setting up a strict correlation between the amount
of the tariff and the real quantity of waste.
So it is based on the quantification of the real urban waste produced and given
by each ratepayer to the public system of management.
The most common ways of quantification are:
a)the pre-paid bag so that the tariff is determined depending on the number of
bags used by the ratepayer (volume based PAYT);
b)the bin equipped with a microchip that allows to count the number of
emptying → quantity of waste → the bin’s volume and the specific weigh of
waste (volume based PAYT);
c)the immediate weighing of waste.
Use of economic instruments and waste management performances
Dogliani (Province of Cuneo)
North – West of Italy
Inhabitants 2009: 4.799
Waste collection system: door to door for paper and cardboard,
plastic packaging, metallic packaging, organic (kitchen waste),
residual unsorted waste. Road collection for glass. Municipal
centre of collection
Domestic composting of organic waste: 52% of the families
Waste collection cost in 2003: 16,00 €/inhabitant
Waste collection cost in 2004: 30,00 €/inhabitant
Waste treatment and disposal cost in 2003: 43,00 €/inhabitant
Waste treatment and disposal cost in 2004: 13,00 €/inhabitant
Selective waste collection 2005/2004: + 154%
Total waste production 2005/2004: -38,64%
Residual unsorted waste production 2005/2004: -79,96%
Volume based PAYT with the pre-paid bag
Year
Total waste
Unsorted
residual waste
Selective
collection
[kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day]
2002
1,173
0,999
0,173
2003
1,110
0,913
0,196
2004*
2005
0,681
0,818
0,183
0,207
0,498
0,603
2006
0,887
0,205
0,678
2007
0,866
0,202
0,660
2008
0,879
0,213
0,661
2009
0,975
0,257
0,710
2004 first year of PAYT and door to door collection
Use of economic instruments and waste management performances
Castagnole delle Lanze (Province of Asti)
North – West of Italy
Inhabitants 2009: 3.853
Waste collection system: door to door for paper and cardboard,
plastic packaging, metallic packaging, organic (kitchen waste),
residual unsorted waste. Road collection for glass. Municipal
centre of collection
Domestic composting of organic waste: 50% of the families
Waste collection cost in 2004: 24,83 €/inhabitant
Waste collection cost in 2005: 37,84 €/inhabitant
Waste treatment and disposal cost in 2004: 57,92 €/inhabitant
Waste treatment and disposal cost in 2005: 18,61 €/inhabitant
Selective waste collection 2005/2004: + 90,94%
Total waste production 2005/2004: -37,89%
Residual unsorted waste production 2005/2004: -78,29%
Volume based PAYT with the pre-paid bag
Year
Total waste
Unsorted residual
waste
Selective
collection
[kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day]
2000
2001
2002
2003
2004
2005*
2006
2007
2008
2009
0,955
1,014
1,038
1,019
1,111
0,690
0,774
0,792
0,767
0,795
0,841
0,855
0,865
0,811
0,843
0,183
0,200
0,199
0,190
0,181
0,114
0,159
0,171
0,204
0,265
0,506
0,571
0,591
0,571
0,611
2005 first year of PAYT and door to door collection
Use of economic instruments and waste management performances
Bruino (Province of Turin)
North – West of Italy
Inhabitants 2009: 8.503
Waste collection system: door to door for paper cardboard, glass,
plastic packaging, metallic packaging, organic (kitchen waste),
vegetable, residual unsorted waste. Municipal centre of collection
Domestic composting of organic waste: 14,35% of the families
Waste collection cost in 2005: 49,05 €/inhabitant
Waste collection cost in 2006: 71,41 €/inhabitant
Waste treatment and disposal cost in 2005: 34,50 €/inhabitant
Waste treatment and disposal cost in 2006: 19,54 €/inhabitant
Selective waste collection 2006/2005: + 13,86%
Total waste production 2006/2005: -13,71%
Residual unsorted waste production 2006/2005: -46,89%
PAYT: “presumptive method”
Year
Total waste
Unsorted
residual waste
Selective
collection
[kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day]
2003
2004
2005
2006*
2007
2008
2009
1,331
1,373
1,253
1,082
1,158
1,210
1,248
0,881
0,885
0,567
0,301
0,337
0,341
0,333
0,444
0,480
0,677
0,771
0,811
0,860
0,907
2006 first year of PAYT and complete door to door collection
Use of economic instruments and waste management performances
Pecetto (Province of Turin)
North – West of Italy
Inhabitants 2009: 3.898
Waste collection system: door to door for paper cardboard, glass,
plastic packaging, metallic packaging, organic (kitchen waste),
vegetable, residual unsorted waste. Municipal centre of collection
Domestic composting of organic waste: 16% of the families
Waste collection cost in 2004: 52,72 €/inhabitant
Waste collection cost in 2005: 61,26 €/inhabitant
Waste treatment and disposal cost in 2004: 29,75 €/inhabitant
Waste treatment and disposal cost in 2005: 28,59 €/inhabitant
Selective waste collection 2006/2005: + 3,10%
Total waste production 2006/2005: +0,01%
Residual unsorted waste production 2006/2005: -6,57%
Volume based PAYT: bins equipped with microchips
Year
Total waste
Unsorted
residual waste
Selective
collection
[kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day]
2002
1,510
1,153
0,353
2003
1,432
1,077
0,347
2004
1,252
0,450
0,797
2005
1,290
0,449
0,836
2006
2007
1,290
1,233
0,421
0,387
0,863
0,841
2008
1,139
0,326
0,804
2009
1,101
0,317
0,776
door to door collection since 2004
2006 first year of PAYT
Use of economic instruments and waste management performances
Priula (Association of Municipalities, Province of Treviso)
North – East of Italy
Inhabitants: 245.000
Waste collection system: door to door for paper and cardboard,
glass, plastic packaging, metallic packaging, organic (kitchen
waste), vegetable, residual unsorted waste. Municipal centre of
collection
Volume based PAYT: bins equipped with microchips
Source of data and graphics: Consorzio Priula
Use of economic instruments and waste management performances
Conclusions
Reduction of total waste and increase of selective waste collection
The best results and performances are achieved with a combination of:
a) PAYT based on the quantification of real urban waste produced and
given by each ratepayer;
b) door to door collection;
c) communicative campaigns which should be made every year;
d) domestic composting of organic waste.
Use of economic instruments and waste management performances
Thank you!
Umberto Gianolio
E.R.I.C.A. soc. coop.
Use of economic instruments and waste management performances