Waste recycling policies and Covid-19 pandemic in an E-DSGE model

Abstract

Among the environmental problems we have still to face in the 21st century, waste production and management are particularly pressing. Despite policy efforts, waste volumes are still increasing worldwide and landfilling remains the main disposal option in several parts of the world. Together with the huge environmental impacts of the large amounts of waste landfilled, it would be possible to save enormous amounts of resources improving reuse and recycle options. The impact of the COVID-19 outbreak has been significant also in the waste cycle, leading to an increase in the amount of non-recyclable carising sanitary needs and new consumption practices. On the basis of these considerations this paper aims at analysing: i) the short run impact on output, consumption and health of appropriate waste policies aimed at reducing non-recyclable waste production, and ii) to highlight the mechanics triggered by an exogenous pandemic event in terms of waste management, environmental and health impacts. To these ends, we adopt an E-DSGE approach. Our results confirm the relevance of policies and consumers’ preferences in driving waste management towards a circular economy transition. More importantly, our (to our knowledge) novel analysis suggests the existence of a trade-off between environmental quality and health in the presence of a pandemic event, suggesting the need to increase preparedness to such events, in order to avoid relying on ”emergency approaches”, based on resorting to increases in non-recyclable consumption types (e.g. single use plastics).

A Review of Recycling and Waste Management Systems Through the Lens of the COVID-19 Pandemic

“…Additionally, results showed that throughout the span of the pandemic and as of now, the amount of non-recyclables being produced has significantly increased. A similar finding was reported by Argentiero et al [34]. This is an overarching finding that is further explored through the rest of the discussion.…”

“…Another study done by de Blasio & Fallon [56] offered more valuable insight reporting that policymakers need to create incentives to rationalize plastic waste chains that are currently highly fragmented. Argentiero et al [34] corroborates this idea, reporting the positive effects of both incentive based and behavioral policy changes such as information/educational campaigns. All of these are practical policies that can create small steps in reducing the damage to the environment and public health caused by the pandemic.…”

“…The general consensus around waste and recycling management systems during and after the peak of the pandemic is that they have been negatively impacted [21,[34][35][36][37][38][39]. From a broad perspective, the amount of household (municipal) waste generated in the EU was 181.4 million tonnes in 2016, 186.1 million tonnes in 2018 (the start of the pandemic), and 195.9 million tonnes in 2020 (largely considered the peak of the pandemic) [29].…”

“…There were also many papers that focused their studies on multiple sections of waste; more specifically, 19 papers talked about all three sections and 4 talked about a combination of just medical and plastic waste. The reason for these numbers is clear: all types of waste have been detrimentally affected due to the pandemic [21,[34][35][36][37][38][39] meaning the demand for studies regarding these types of waste have increased. The fact that many studies also focused on numerous types of waste also highlights the importance of dealing with all sections of waste management.…”

The Landfilling of Municipal Solid Waste and the Sustainability of the Related Transportation Activities

“…In Italy, in particular, 34% of waste is still landfilled, while 28% is sent for recycling, 18% is composted, and 21% is burned in waste-to-energy plants. Moreover, it should also be considered that recent analyses of the impact of the COVID-19 outbreak on waste cycle management [21,22] have shown an actual increase in the amount of non-recycled materials due to sanitary needs and new safety consumption practices. Therefore, the increase in the quantity of recycled waste, in accordance with EU requirements [1], requires the constant updating of Waste Management Plans implemented by regional administrations [23].…”