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

is proposed not to be set at a level that represents environmental costs of each
option, as per the original intention of, for example, the UK’s Landfill Tax, but primarily
with a focus on the distinct policy goal of encouraging development of alternatives to
landfill, without giving competitive advantage to incineration.
Regarding financial costs, the RIA states: 876
714
The model assumed marginal costs (excluding levies) for the alternative
treatments as follows:
29/09/09
� Landfill €50 per tonne
� Incineration €105 per tonne
� MBT Medium €110 per tonne
� MBT High €120 per tonne
This means that the model assumes that these cost levels are required to operate
the treatment options. If tariffs are higher than these costs, owners will receive a
profit higher than necessary. If tariffs are lower than these costs, owners will have
a financial loss.
The RIA effectively assumes that landfill operators are generating significant rents
from their activities, and that levy increases might have the effect of squeezing these
rents, but with gate fees, as a consequence, rising by a figure which is below that of
the levy itself.
The RIA proposes the following levy structure:
The recommendation of the RIA with respect to the WFL levy is that an
announcement and commitment to the following tariff increases is proposed.
An increase in the existing levy on landfill from €20 in 2008 to €40 in 2010
and €75 in 2011. A levy on incineration of €22 from 2011. No levy for the
landfill of suitably stabilised biowaste from 2010.
It also proposed a maximum levy for landfill of €85 per tonne, for incineration of €45
per tonne, and of €20 per tonne for stabilized biowaste.
The study suggests that with this levy, Landfill Directive targets may be met by 2014-
2015. This reflects the sorts of lead time expected in terms of investment decisions
and developing and commissioning of facilities:
Specifically, the lead time for investment decisions, the time required from the
decision to having an operational plant and the speed with which investors
decide to invest. The Department can influence this schedule by providing
clear information about future developments of policies and by actions to
diminish procedure time for the setup of new waste treatment technology
capacity.
876 AP EnvEcon (forthcoming) Regulatory Impact Analysis on Proposed Legislation to Increase Levies
on Shopping Bags and Certain Waste Facilities, Final Report.