USE OF ECONOMIC INSTRUMENTS AND WASTE MANAGEMENT PERFORMANCES. Use of economic instruments and waste management performances
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1 USE OF ECONOMIC INSTRUMENTS AND WASTE MANAGEMENT PERFORMANCES
2 The legislative background: the selective urban waste collection With reference to waste management, Italy is divided into several territorial partitions generally corresponding to the administrative precincts of the Provinces. Every territorial partition is composed of a certain number of Municipalities. [art. 200, D.lgs. 152/2006; art. 2, paragraph 38, L. 244/2007] In each territorial partition, the objective of selective waste collection is 65% to be reached by the end of The Municipalities whose bad performances don t allow to obtain this result are subject to a financial penalty consisting in an addition of 20% on the special tax on the price paid for the final disposal of waste. [art. 205, D.lgs. 152/2006]
3 The legislative background: the definition of urban waste According to their origin, waste are classified as urban or special. Urban waste are those: a) originated by households; b) unhazardous originated by other economic operators (such as industry, artisans, commerce and trade, agriculture, tertiary) when they meet the qualitative and quantitative requisites fixed by the Municipality so that they must be similar in quality and quantity to urban ones; c) abandoned on the public soil; d) vegetable originated by gardens and green areas care; e) from cemeteries.
4 The legislative background: the fiscal system concerning urban waste management Households and the other producers of urban waste are compelled to pay a rate which contributes to finance the management of urban waste. This rate is collected by the Municipality. There are two kinds of municipal charging: a) the tax; b) the tariff or PAYT calculated according to two different methods, the presumptive and the precise ones.
5 The legislative background: the fiscal system concerning urban waste management The tax is regulated by the Decree n. 507 of 1993 but it is going to be gradually substituted by the tariff. The tariff was introduced in the Italian fiscal system in 1997 for the first time. The method of calculation is regulated by the Decree n. 158 of The tariff is not compulsory, but it can be enforced voluntarily by the Municipality. The deadline for the complete transition from the tax to the tariff has not been fixed yet. It has to be fixed by the Ministry of the Environment according to article 238 of the Decree n. 152 of 2006.
6 The legislative background: the difference between the tax and the tariff The tax is calculated multiplying the surface (in square meters) of the house or other places (i.e. offices, shops, restaurants, schools, museums and so on) by a rate expressed in /m 2. This rate ( /m 2 ) is generally the same for all households independently on the number of persons of which each family is composed, while it is differentiated for non-household users depending on the category of the economic activity carried out. In both cases, there is no correspondence between the tax and the real quantity of waste produced and given to the public system of management no efficacy in preventing waste production.
7 The legislative background: the composition of the tariff The tariff is composed of: a)a fix part which is determined according to the essential components of the public service of waste management especially referring to the investments and their amortization; b)a variable part which is determined according to (i) the quantity of waste given to the public service of management, (ii) the standard of the service offered by the Municipality, (iii) the size of the costs of waste management.
8 The legislative background: the costs financed by the tariff Description of the costs Fix part (FP) Variable part (VP) Costs for public roads and squares sweeping CSL FP A) Operating costs of management CG A.1) Costs for the management of the cycle of services referred to residual unsorted waste CGIND Costs for unsorted waste s collection and transport CRT Costs for unsorted waste s treatment and disposal CTS Other costs AC VP VP FP A.2) Costs for the management of the cycle of services referred to recyclable sorted waste CGD Costs for selective waste collection CRD Costs for recyclable sorted waste s treatment CTR (deducted the earnings and revenues for the sale of recyclable waste) VP VP B) Common costs CC B.1) Administrative costs (tariff assessment and collection, fiscal cases) CARC B.2) Overhead costs of management CGG (i.e. communicative and informative campaigns) B.3) Other common costs CCD FP FP FP C) Costs of the capital CK Amortizations, funds, reserves, interests FP
9 The so called presumptive method The presumptive method is based on the estimated quantity of urban waste produced and given by the ratepayers to the public system of management. ratepayers class households six categories depending on the number of persons in the family (from one to six or more persons) class non-households thirty or twenty-one categories according to the economic activity carried out (i.e. museums, schools, nonfood shops, food shops, restaurants, factories and so on).
10 The so called presumptive method The fix part is calculated in proportion to the surface (in square meters) of the house or the other places subject to the tariff. Equalization of the surfaces through potential waste production indexes. The variable part is calculated in proportion to the estimated (i.e. presumptive) quantity of waste given to the public system of management. To each category is associated an index expressing the expected (i.e. potential) production of urban waste is associated. The indexes are indicated by the law.
11 The so called precise method or PAYT The precise method aims at setting up a strict correlation between the amount of the tariff and the real quantity of waste. So it is based on the quantification of the real urban waste produced and given by each ratepayer to the public system of management. The most common ways of quantification are: a)the pre-paid bag so that the tariff is determined depending on the number of bags used by the ratepayer (volume based PAYT); b)the bin equipped with a microchip that allows to count the number of emptying quantity of waste the bin s volume and the specific weigh of waste (volume based PAYT); c)the immediate weighing of waste.
12 Dogliani (Province of Cuneo) North West of Italy Inhabitants 2009: Waste collection system: door to door for paper and cardboard, plastic packaging, metallic packaging, organic (kitchen waste), residual unsorted waste. Road collection for glass. Municipal centre of collection Domestic composting of organic waste: 52% of the families Waste collection cost in 2003: 16,00 /inhabitant Waste collection cost in 2004: 30,00 /inhabitant Waste treatment and disposal cost in 2003: 43,00 /inhabitant Waste treatment and disposal cost in 2004: 13,00 /inhabitant Volume based PAYT with the pre-paid bag Selective waste collection 2005/2004: + 154% Total waste production 2005/2004: -38,64% Residual unsorted waste production 2005/2004: -79,96% Year Total waste Unsorted residual waste Selective collection [kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day] ,173 0,999 0, ,110 0,913 0, * 0,681 0,183 0, ,818 0,207 0, ,887 0,205 0, ,866 0,202 0, ,879 0,213 0, ,975 0,257 0, first year of PAYT and door to door collection
13 Castagnole delle Lanze (Province of Asti) North West of Italy Inhabitants 2009: Waste collection system: door to door for paper and cardboard, plastic packaging, metallic packaging, organic (kitchen waste), residual unsorted waste. Road collection for glass. Municipal centre of collection Domestic composting of organic waste: 50% of the families Waste collection cost in 2004: 24,83 /inhabitant Waste collection cost in 2005: 37,84 /inhabitant Waste treatment and disposal cost in 2004: 57,92 /inhabitant Waste treatment and disposal cost in 2005: 18,61 /inhabitant Volume based PAYT with the pre-paid bag Selective waste collection 2005/2004: + 90,94% Total waste production 2005/2004: -37,89% Residual unsorted waste production 2005/2004: -78,29% Year Total waste Unsorted residual waste Selective collection [kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day] ,955 0,841 0, ,014 0,855 0, ,038 0,865 0, ,019 0,811 0, ,111 0,843 0, * 0,690 0,183 0, ,774 0,200 0, ,792 0,199 0, ,767 0,190 0, ,795 0,181 0, first year of PAYT and door to door collection
14 Bruino (Province of Turin) North West of Italy Inhabitants 2009: Waste collection system: door to door for paper cardboard, glass, plastic packaging, metallic packaging, organic (kitchen waste), vegetable, residual unsorted waste. Municipal centre of collection Domestic composting of organic waste: 14,35% of the families Waste collection cost in 2005: 49,05 /inhabitant Waste collection cost in 2006: 71,41 /inhabitant Waste treatment and disposal cost in 2005: 34,50 /inhabitant Waste treatment and disposal cost in 2006: 19,54 /inhabitant PAYT: presumptive method Selective waste collection 2006/2005: + 13,86% Total waste production 2006/2005: -13,71% Residual unsorted waste production 2006/2005: -46,89% Year Total waste Unsorted residual waste Selective collection [kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day] ,331 0,881 0, ,373 0,885 0, ,253 0,567 0, * 1,082 0,301 0, ,158 0,337 0, ,210 0,341 0, ,248 0,333 0, first year of PAYT and complete door to door collection
15 Pecetto (Province of Turin) North West of Italy Inhabitants 2009: Waste collection system: door to door for paper cardboard, glass, plastic packaging, metallic packaging, organic (kitchen waste), vegetable, residual unsorted waste. Municipal centre of collection Domestic composting of organic waste: 16% of the families Waste collection cost in 2004: 52,72 /inhabitant Waste collection cost in 2005: 61,26 /inhabitant Waste treatment and disposal cost in 2004: 29,75 /inhabitant Waste treatment and disposal cost in 2005: 28,59 /inhabitant Volume based PAYT: bins equipped with microchips Selective waste collection 2006/2005: + 3,10% Total waste production 2006/2005: +0,01% Residual unsorted waste production 2006/2005: -6,57% Year Total waste Unsorted residual waste Selective collection [kg/inhabitant*day] [kg/inhabitant*day] [kg/inhabitant*day] ,510 1,153 0, ,432 1,077 0, ,252 0,450 0, ,290 0,449 0, ,290 0,421 0, ,233 0,387 0, ,139 0,326 0, ,101 0,317 0,776 door to door collection since first year of PAYT
16 Priula (Association of Municipalities, Province of Treviso) North East of Italy Inhabitants: Waste collection system: door to door for paper and cardboard, glass, plastic packaging, metallic packaging, organic (kitchen waste), vegetable, residual unsorted waste. Municipal centre of collection Volume based PAYT: bins equipped with microchips Source of data and graphics: Consorzio Priula
17 Conclusions Reduction of total waste and increase of selective waste collection The best results and performances are achieved with a combination of: a) PAYT based on the quantification of real urban waste produced and given by each ratepayer; b) door to door collection; c) communicative campaigns which should be made every year; d) domestic composting of organic waste.
18 Thank you! Umberto Gianolio E.R.I.C.A. soc. coop.
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