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

promote cost effective means of responding to the incentive), this does depend upon
the level of the tax, and also, upon the extent to which other activities are treated in a
similar manner. In this context, we note that whereas most disposal technologies
have associated with them a net environmental cost, recycling tends to generate net
external benefits. Consequently, taxes on landfill, and to a lesser degree, incineration,
have been used pragmatically to promote recycling and other residual waste
treatments rather than to ‘internalise externalities’.
UK experience with the landfill tax has been interesting in this regard– initially set
through reference to a study on the external costs of landfill and incineration, the tax
has now departed significantly from the initial levels, and no subsequent study of an
equivalent nature has been carried out to justify the change. On the contrary, the
most recent study emerging from government actually suggested the external costs of
landfill were far lower than the tax rate which currently prevails, and lower than those
for incineration, which is subject to no such tax. 894 Although the study was carried out
in the context of a commitment to review the case for an incineration tax, no such tax
exists in the UK.
It is an interesting point that no country has considered all options for residual waste
management with a view to treating them all on an equivalent basis. Some studies
have been carried out which seek to propose alternative instrument designs for
landfill and incineration taxes. 895 However, these tend to be limited to one or other of
the main disposal options (landfill and incineration). Relatively few studies have
assessed the external costs of residual waste treatment other than incineration and
landfill (see also Annex 63.0). 896
Responsibility for fiscal policy generally resides at the level of the nation state. Hence,
taxes tend to be implemented on a national level. They can, however, be
administered, and the revenues collected, at a regional level, where such
competence resides with regions.
52.1.2 Bans and Restrictions on Landfilling and Incineration
All European countries are required to implement bans and restrictions on the
landfilling of waste as a consequence of the Landfill Directive. This outlaws the
landfilling of:
729
• Whole and shredded tyres;
• Liquid wastes;
894 HM Customs & Excise (2004) Combining the Government’s two heath and environment studies to
calculate estimates for the external costs of landfill and incineration, December 2004.
895 See, for example, A. Bjorklund and G. Finnvenden (2007) Lifecycle Assessment of a National Policy
Proposal – the Case of a Swedish Incineration Tax, Waste Management, Vol.27, Issue 8, pp.1046-58.
896 Exceptions are Eunomia and Tobin (2008) Meeting Ireland’s Waste Targets: The role of MBT – Final
Report for Greenstar, Dublin, Ireland, and in respect of climate change impacts only, Eunomia (2008)
Greenhouse Gas Balances of Waste Management Scenarios, Report for the Greater London Authority.
International Review of Waste Policy: Annexes