Drivers of municipal solid waste management cost based on cost models inherent to sorted and unsorted waste

Abstract

After having divided waste management cost in its cost items, we focus on how well-known exogenous and endogenous drivers impact on such cost items. To this end, we collected empirical data of 6,616 Italian municipalities for a two-year period. We develop four regression-based models to analyze the data according to cost items. Models are also reiterated using different data normalization: cost per ton of waste or waste per capita. Besides exogenous determiners of cost, such as altitude, population density, and coastal zone, results refer to both unsorted and sorted waste management cost items. In this respect economies of scale are confirmed along with the critical role of adequate waste facilities that play a remarkable role in cost minimization. Policymakers and regulators may benefit from such results when it comes to define allowed revenues and design the scope of municipal solid waste regulation.