The impact of recycling on the productivity of Municipal Solid Waste: a comparison of the Malmquist and Malmquist-Luenberger Productivity Indexes

Abstract

Enhancing the economic and environmental efficiency of municipal solid waste (MSW) management is crucial for transitioning to a circular economy and achieving cost-efficient and sustainable waste practices. In this study, we introduce an innovative approach to examine the influence of MSW recycling on waste performance over multiple years. We employ a non-parametric method to assess and compare the Malmquist Productivity Index (MPI) and the Malmquist-Luenberger Productivity Index (MLPI) across 143 municipalities in Chile from 2015 to 2019. The findings reveal a positive trend in both MPI and MLPI. The average eco-productivity change (MLPI) is relatively lower than the average productivity change (MPI) throughout the evaluated years. The aggregated scores for MPI and MLPI between 2015 and 2019 stand at 2.73 and 1.33, respectively. The primary driver of productivity change is attributed to technical advancements, leading to a shift in the efficient frontier, while eco-productivity change predominantly arises from efficiency enhancements. This implies that municipalities have employed diverse strategies to enhance their economic and environmental performance. The results and implications of this study hold significance for policymakers at regional and local levels, offering valuable insights for optimising MSW management within the context of a circular economy.