Assessing the Cost and Environmental Benefits of Unit Pricing in Municipal Solid Waste Management: Insights in the Wake of New Regulations

Municipal solid waste management is a crucial and rapidly evolving municipal service, especially in the context of circular economy goals. The cost-efficiency of waste management and the adoption of incentive-based pricing systems are critical issues that are attracting growing academic interest. A well-designed tariff system is essential for covering costs and encouraging responsible waste disposal behaviors. This article explores the effects of such a tariff system, guided by the following research questions: How does the total cost per ton of municipal solid waste management evolve after implementing the new tariff method? Does the percentage of separate waste collection increase due to the regulatory changes in the sector? What is the impact of the unit pricing system on the total cost, the rate of separate collection, and the per capita waste generation? This study significantly contributes to the existing literature by analyzing the impact of this regulation for several reasons. Firstly, it utilizes both economic and environmental data at the municipal level. Secondly, it facilitates the creation of temporal groups to compare scenarios before and after the implementation of the new regulation. Lastly, it assesses the effectiveness of pay-as-you-throw tariffs in achieving environmental and economic objectives.