Re-thinking incentives and penalties: Economic aspects of waste management in Italy

• We focused on the dynamics the formation of operational costs of waste management.
• We provide the basic elements to compose a picture of economic management.
• We present a reflection on the last hidden costs associated with the consumption of goods and packaging.
• Reduction of waste production.

This paper focuses on the dynamics the formation of operational costs of waste management in Italy and the effect of economic measures. Currently incentives and penalties have been internalized by the system no differently from other cost items and revenues. This has greatly influenced the system directing it towards solutions that are often distant from the real environmental objectives. Based on an analysis of disaggregated costs of collection treatment and recovery, we provide the basic elements to compose a picture of economic management in various technical–organizational scenarios.In the light of the considerations contained in the paper it is proposed, e.g. for controlled landfills, that the ecotax, currently based on weight, could be replaced by one based on the volume consumption. Likewise, for tax reduction on disposal system, instead a pre-treatment might ask an environmental balance of the overall system.The article presents a reflection on the last hidden costs associated with the consumption of goods and packaging, and how to reduce waste production is the necessary path to be followed in ecological and economic perspectives.