Effects of environmental regulation on separate waste collection dynamics: Empirical evidence from Italy

This paper aims to evaluate the extent to which current Italian legislation has been able to achieve the goals set for separate waste collection within the context of the ongoing revision of EU policy. In Italy waste management is regulated by Legislative Decree 152/2006, which has set the main regulatory pillars: the responsibilities among the actors at different territorial levels (regions, provinces and municipalities); the waste tariff structure; penalties and incentives, such as the “landfill tax” and “green certificates” to promote energy recovery. Focusing on separate collection of municipal waste, the Italian law set three targets to achieve: 35 % by 2006; 45 % 2008, and 65 % by 2012. We propose a two-step analysis focusing on 103 Italian provinces, using the longitudinal data provided by the Italian National Institute of Statistics (ISTAT) for the period 1999-2011. First, using the transition probability matrix, we analyse the transition probabilities among three different separate waste collection states (low, medium and high). Second, by using a generalised ordered probit model, we verify the magnitude and significance of the parameter associated to the Legislative Decree 152/2006 and of some other selected variables in allowing provinces to move from a low separate collection state to a higher one. Our results show that the Legislative Decree has had the positive effect of driving Italy’s provinces towards higher separate waste collection rates, but has not proved effective in lowering the gap among provinces: those in southern Italy remain the least dynamic. Finally, we show that citizen participation in ecological associations and voluntary activities has a positive effect on separate collection rates.