Efficiency and waste management of Italian municipalities: size and location in inner areas matter
摘要
This study examines the relationship between environmental strategies and municipal performance. Specifically, following the stochastic frontier approach, we find a positive correlation between differentiated waste rates and the cost efficiency of Italian municipalities from 2014 to 2020. The results reveal that a higher the proportion of differentiated waste are associated with higher levels of efficiency. However, this positive impact significantly varies depending on the size and geographic context of the municipality. Medium and large municipalities in urban areas tend to benefit more from advanced waste management practices compared to small municipalities. On the other hand, large municipalities in inner areas would benefit more from reducing the level of waste differentiation. The extent of cost efficiency gains and losses also depends on the level of waste differentiation achieved, as supported by the analysis of average marginal effects. The evidence highlights the importance of tailored policies to enhance sustainability practices at local level, thereby addressing specific efficiency challenges across different municipal contexts.