Capturing the effectiveness-cost efficiency nexus in Italian municipal solid waste management: A DEA-Quantile regression approach within the EU policy framework.

Abstract

This study investigates the correlation between environmental effectiveness and cost-efficiency in municipal solid waste (MSW) management within the European Union policy framework. Data from 5,516 Italian municipalities is utilized. MSW service effectiveness is evaluated using a composite indicator that aligns with the waste hierarchy. Quantile regression is applied to examine how disaggregated cost components are associated with service effectiveness across its distribution. Results show that effectiveness and cost-efficiency are complementary rather than conflicting objectives. Higher effectiveness is systematically associated with lower total costs per capita, with total costs decreasing by approximately 34% between the lowest- and highest-performing municipalities. This pattern is driven by a structural shift in expenditure from residual waste management to separate collection systems, reflecting changes in waste flows rather than reductions in service provision. The analysis also reveals significant differences across municipalities. Cost factors play a more significant role in low-performing municipalities, where improvements are mainly linked to service restructuring and cost reallocation. In contrast, their impact decreases in municipalities with higher effectiveness levels, where organizational and governance factors become important. These findings highlight the importance of tailored policy approaches. Operational restructuring is crucial for low-performing municipalities, while high-performing municipalities benefit more from improvements in governance, coordination, and citizen engagement.