The management of Municipal Solid Waste (MSW) represents one of the greatest challenges faced during the recent years. Waste causes severe environmental externalities. The planet’s natural resources are limited, thus, proper MSW treatment attracts the increasing attention of policy makers. It is important to review the benefits and the costs of waste related policies.
Since 2019 a new pricing regulation is in force and will be applied in 2020 for the first time. This regulation ties more closely the levies to the waste performance of each Municipality and is set to ensure that disposal will always be the most expensive treatment choice. This dissertation aims to indicate the elements which will help understand the present situation and assess the impact of the pricing regulation on Municipal Budgets. The levies have been calculated according to the new regulation using the most recent annual data available; those of the year 2019. This methodology showed that for the Region of Central Macedonia, the annual levies are 9% lower compared to the previous pricing status. Furthermore, while the unit cost for disposal services remains unchanged, the unit cost for waste recovery and transfer services is remarkably lower according to the new regulation (58% and 44% lower respectively).
Another aim of this dissertation is to evaluate the impact of MSW treatment on the financial stability of the Municipalities of Central Macedonia, by examining the volume of waste treatment costs compared to the relevant Municipal revenues. The relation between revenues and costs is depicted for each Regional Unit. The average ratio of costs to revenues has been calculated at 11%. Findings indicate that waste treatment costs don’t impose a significant burden on Municipal waste related budgets.
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