A waste management tariff was introduced by Italian law no. 22/1997 and was
meant to replace the former waste management tax; however, the latter still applies
in many Italian municipalities because the provisions of law 22/1997 allow the
transition to be gradual4 starting from 2000.5 The tariff is based on the principle of
full-cost pricing of waste management services and, in addition to a fixed part related
to household size, it also contains a variable element related to the household’s
efforts to reduce waste generation or to separate waste for collection (based on
weight).6 Thus, the tariff system is not a flat fee system. Effective implementation of
the tariff system is very dependent on local policy decisions and practices, and in part
is down to the choice made by the municipality.7 We note that implementation is
heterogeneous even across areas with similar incomes and similar social economic
variables, and may depend on the level of local policy commitment and other
idiosyncratic (unobserved) factors.