Financing a competitive recycling initiative in Switzerland

The purpose of the paper is to enhance the understanding of different pricing systems within the real world of solid waste management: first the effect on recycling behaviour of citizens, and second the effect on the budget goals, and third the operational logic of different economic measures will be analyzed. Hence it helps practitioners understand and cope with the challenge of meeting the zero profit budget goal in public solid waste management while inducing behaviour change in the regional solid waste system. The question “How can robust recycling strategies be financed?” is addressed.The analysis draws on a system dynamics model for solid waste management that is based on a model framework on human behaviour and public policy that embraces an evolutionary feedback perspective. The model structure was deduced from an ex-post analysis of observed phenomena in solid waste management such as recurring budget deficits at the local level in Switzerland. The paper illustrates how the model was used as a policy lab in which various pricing and incentive strategies were tested that allowed addressing “what-if-questions” under controlled conditions. The various policy-experiments illustrated crucial trade offs between zero profit budget goals at the local level and the administration of a successful recycling initiative. Different scenario-experiments show that under worst-case conditions economic instrument are not sufficient in order to yield a robust policy outcome.