Money laundering and illegal trafficking of waste: evidence from the Italian provinces

Abstract

Money laundering and waste-related crimes are widely studied by the literature. However, few attention has been paid to the connection between the latter and the former. Using Italian data at provincial level, the analysis presented here shows that also waste-related crimes generate illegal proceeds that increase the flows of dirty money that needs laundering. Moreover, evidence about cross-provincial spillovers is provided. Fighting money laundering and following dirty money (perhaps also internationally) may help decreasing illegal waste disposals and traffics, decreasing the yields generated by these crimes. JEL Codes: K32, Q53