Market Structure of Urban Waste Treatment and Disposal: Empirical Evidence from the Italian Industry

Abstract

In light of the organizational dynamics of services of economic interest, the regulation of municipal solid waste management is a critical issue to deal with so as to achieve sustainability goals in the coming decades. The European circular economy targets limit the share of municipal waste in landfills to a maximum of 10% by 2035. Consequently, waste-to-energy plants may temporarily become the primary option for residual unsorted waste. The municipal waste management chain comprises two consequential stages: collection and transport, and the treatment and disposal stage, which characterizes as an oligopolistic market structure. After defining the relevant market and calculating market concentration measures, we analyze market power in the treatment and disposal of non-recyclable mixed waste, also known as residual waste. Our analyses are based on empirical data using well-known market concentration indices such as the Herfindahl–Hirschman index and concentration ratios. We report the results of three different market concentration scenarios based on alternative geographic and product market definitions. Considering only waste-to-energy as a product market, we present a situation of moderate concentration, typically involving the attention of competition authorities. On the contrary, considering both options as a single product market, no relevant evidence emerges due to the significant share of waste sent to landfills in 2019, i.e., 20.1% of the total municipal solid waste generated in Italy. Implications for future studies consist of new detailed information on the municipal waste treatment market structure in one of the leading European countries that may prompt comparative studies. Policy implications are derived from the possibility of taking cues from this paper to envisage appropriate regulatory models for an evolving sector in which market spaces are increasing.

Market Concentration, Producer Organizations, and Policy Measures to Strengthen the Opportunities of Farmers for Value Addition—Empirical Findings from the Austrian Meat Supply Chain Using a Multi-Method Approach

“…Overall, we found a low concentration in the upstream market for live cattle, with differing magnitudes of HHI for individual meat categories and over time. Except for Finland, which can be perceived as an outlier in the market concentration for most foodand beverage-producing sectors, Nes et al (2021) found similarly unconcentrated meat manufacturing markets in several other EU member states (Bulgaria, Czechia, Spain, France, Italy, Hungary, Portugal, Romania, Finland, and Sweden) [15]. A substantially higher market concentration was observed in the downstream market of slaughterhouses.…”

“…In the literature, market concentration serves as a proxy for market participants' position in the supply chain. Peleckis (2022) and Di Foggia and Beccarello (2021) investigate non-food markets in this tradition [14,15]. Nes et al (2021) compared the concentration of EU food markets at several stages; however, the farm level was excluded [16].…”

The Relationship between Efficiency and Quality of Municipally Owned Corporations: Evidence from Local Public Transport and Waste Management in Poland

“…Waste management is an indispensable area of activity that ensures the protection of human life and health and of the environment. In principle, without the existence of waste management, the development of modern civilization cannot be discussed in any aspect [42][43][44].…”

Electronic Noses and Their Applications for Sensory and Analytical Measurements in the Waste Management Plants—A Review

“…As shown on Figure 1, the waste management system is based on several steps and each one of them can be a potential source of odorants, i.e., collection, transport, treatment and disposal of wastes (mechanical-biological treatment facilities, composting plants, landfills, waste incinerators) [10][11][12][13]. The first step in the waste management chain is the collection of wastes by residents at households and residential areas and their transport by specialized vehicles to the adequate facilities for treatment and disposal.…”

“…The latter process is crucial for emission of odorous substances [2,7,9]. Moreover, chemical composition of those volatile mixtures can vary depending on the type of waste being processed, the stage of waste decomposition, the selected treatment method and its operating conditions, i.e., temperature, humidity or aeration [4,10,14]. The way that every step in waste management system is carried out can vary on national, regional and local scales [13].…”