Illegal Trafficking and Unsustainable Waste Management in Italy: Evidence at the Regional Level

Abstract

The presence of organized crime strongly affects sustainable waste management in Italy. In particular, illegal trafficking of waste has become one of the fastest growing areas of crime and one of the most lucrative industries among organized criminal activities, which has now infiltrated both the Italian urban and hazardous waste management cycle. In this study, we aim to investigate the determinants of the illegal trafficking of waste using waste, economic, and enforcement data in a panel analysis over the period 2002-2013. The topic is particularly relevant, given the high heterogeneity across Italian regions which also relates, and eventually leads, to different environmental performances. Our main findings reveal that, in most Italian regions, enforcement activities do not exert a significant deterrence on criminal behaviors; a negative relationship between enforcement and illegal trafficking of waste can be identified only for very high levels of enforcement efforts. Moreover, we find that the major determinants influencing the rate of illegal trafficking of waste differ between northern-central and southern regions, confirming the existence of a regional dualism. In particular, while in the northern-central area the crime rate is positively related to the level of education and negatively to the adoption of environmentally sound policies, in southern regions the organized activities for illegal trafficking are negatively related to the degree of education attainment and positively to the endowment of waste management plants.

Illicit Waste Trafficking and Loopholes in the European and Italian Legislation

“…Article 256 punishes waste activities carried out without either the preventive control of the public administration or the required authorisation, registrations and/ or communication prescribed in articles 208 through to 212, and 214, 215, 216 (Germani, Pergolizzi, and Reganati 2015).…”

“…As for the Italian administrative waste framework, the length and difficulty of current legislation pertaining to the authorisation, registration and licenses' issuance procedure constitutes one of the key reasons behind the insufficient number of waste treatment and disposal plants in Italy, compared to the real demand of the market (Germani, Pergolizzi, and Reganati 2015). This situation has caused waste crises, such as the emergency that occurred in Naples in recent years, where waste was abandoned on the streets and in the fields, provoking serious pollution and health safety concerns (Commissione parlamentare inchiesta rifiuti 2016a, 2016b).…”

“…Further up the ladder, criminals may engage in other noncompliant behaviours, such as corrupting public officials in charge of the procedures connected to the release of authorisations, registrations and licenses. The level of corruption against public official is of such amount to be considered a threat to crime vulnerability (Vagliasindi, Lucifora, and Bianco 2015;Germani, Pergolizzi, and Reganati 2015). In addition, the Environmental Code requires companies to meet certain conditions to receive grants and subsidies.…”

“…With regards to the Italian framework, urban waste management comes under the competence of public local municipalities, which ordinarily adopt different strategies for treatment and disposal; therefore, it is often difficult to implement an effective system of control (Cassinelli and Del Duro 2007;Germani, Pergolizzi, and Reganati 2015;Vagliasindi, Lucifora, and Bianco 2015). Traceability represents, at least for the time being, a critical shortcoming in the Italian context (as well as for most of the EU MSs): in the majority of cases, it is based on self-certification (mainly through the formulary to identify waste), and thus documents can easily be forged and counterfeited (De Santis 2008; Commissione parlamentare inchiesta rifiuti 2014, 2016a; Sahramäki et al 2017).…”

“…Previous studies and academic research on IWT have shown how criminal actors in the waste sector are not only members of organised crime groups, but also businessmen operating in the legitimate economy who have decided to turn to the black market (i.e., white-collar criminals) (Germani, Pergolizzi, and Reganati 2015;Sahramäki et al 2017). In an effort to reduce their costs and generate further profit, they are likely to avoid the duties associated with the correct and environmentally sound treatment of waste.…”