Financial Incentives and Municipal Solid Waste Expenditures


STRUK Michal

Year of publication 2018
Type Appeared in Conference without Proceedings
MU Faculty or unit

Faculty of Economics and Administration

Description Study examines the role of financial incentives in the field of municipal solid waste management. The objective is to provide evidence how can the introduction of incentives effect the related municipal expenditure using data from a sample of municipalities from the Czech Republic. Both positive and negative financial incentives in the form of PAYT and reversed PAYT (tax discounts) were included in the study. Results compare per capita expenditure between municipalities using incentives and those that do not. In addition, comparison of municipal expenditure before and after the introduction of the incentives is included. Depending on the specifics of the municipality, as in practice no two municipalities are equal and thus measures often tend to work slightly different, some municipalities experience immediate drop in expenditure, while in other it takes time. The participation of public and role of information campaigns here is crucial. These introduction expenditures sometimes even make waste management in total more expensive in the introductory year, but then notable savings typically begin to occur. Overall, correctly designed and introduced financial incentives have generally a large potential for improving municipal waste management both from economic and environmental perspective.
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