Do the variable charges really increase the effectiveness and economy of waste management? A case study of the Czech Republic

According to the European regulation regarding waste management (which is reflected in the increasing pressure on municipal waste separation and recycling) the choice of suitable political instruments seems to be crucial. Based on scientific research, the variable charges are considered as an effective choice for the regulation. Unfortunately, scientific research is not followed by a local decision making process within the Czech Republic. One of the reasons discussed in this paper is the economy of variable charges and their influence on administrative costs and total costs of the municipal waste management system. There is no doubt that the effectiveness of variable charges is higher than by fixed fees, but the crucial question for local representatives is not the effectiveness but the economy of charges in the waste management.

► Variable charges result in a higher degree of waste separation.
► Increasing waste separation does lead to increasing costs.
► This increase is offset by cost savings on landfilling the municipal waste.
► The implementation of variable charges does not lead to the increase of total costs.
► Variable charges fulfil the fiscal and informative function of this policy instrument.