International Review of Waste Management Policy - Department of ...

11.11 Complementary Policies
In addition to the Landfill Levy, an environmental levy on plastic bags has been
introduced. The proceeds of both the Environmental Levy on the supply of plastic
bags (collected by the Revenue Commissioners) and the Environmental Levy on the
landfilling of waste (collected by the Local Authorities) are paid into an Environment
Fund which is used for a range of waste prevention schemes.
The levy ought to complement pay-by-use schemes, since the rationale for charging
for refuse collections is strengthened where disposal costs are higher. However, it
should be recognised that there is not necessarily a direct link between residual
waste disposal / treatment costs and the marginal rates charged by collectors for the
residual waste collection system. Evidently, the link is less likely to be a strong one
where the charges are not based upon weight.
11.12 Effect of the Policy on Pricing of Resources / Services
An earlier report by Eunomia assessed the externalities associated with Landfill,
Incineration and MBT. 217 The results from that report are shown in Table 11-7.
Elsewhere within these Annexes, we have also assessed the externalities from landfill
and other residual waste treatment options (see Annex 63.0).
Table 11-7: Externalities from Landfill, Incineration and MBT
Landfill Landfill Incineration Incineration MBT
MBT
Direct emissions non-GHG related €2.64 €23.51 0.49
Direct emissions GHG related €59.13 €28.71 15.62
Total Direct Emissions €61.78 €52.22 €16.11
Offsets GHG related -€1.60 -€6.79 -€4.72
Offsets non-GHG -€2.95 -€9.61 -€6.18
Total Offsets -€4.55 €4.55 -€16.40 €16.40 -€10.90 €10.90 €10.90
Net Environmental damages €57.23 €35.82 €5.22
Disamenity €4.25 €14.30 €9.28
Total External Costs €61.48 €50.12 €50.12 €14.49 €14.49
€14.49
The results indicate that the current level of the landfill levy is – subject to the
assumptions used - well below the current level of the levy. They also show that other
residual waste treatment options should be subject to non-zero, though lower, levies.
The first best option would be to internalise these externalities, and hence, limit
demand for landfill. Equally, the first best option would be to internalise externalities
of all management options, but first best options in respect of recycling are generally
not available, and the second best option would be an implied subsidy for recycling
activities, 218 which few Governments are prepared to sanction.
217 Eunomia with Tobin (2007) Waste Policy, Planning and Regulation in Ireland, Report for Greenstar.
218 See, for example, for an estimate of external costs and benefits of recycling, D. Hogg (2006) Impact
of Unit-based Waste Collection Charges, ENV/EPOC/WGWPR(2005)10/FINAL, Paris: OECD; Sound
Resource Management (2009) Environmental Life Cycle Assessment of Waste Management
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