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

� Landfill bans are often applied alongside high landfill taxes. The principle effect
appears to be to shift from landfill to incineration / other forms of residual
treatment;
� The effect of landfill taxes on waste prevention seems limited. They are more likely
to have a positive effect on waste prevention where the price signal is passed
through to the waste producer (PBU);
� Landfill bans or restrictions, when applied alone, may have an impact on waste
prevention, and it may be the case that this impact is greater where landfill is
relatively cheap compared to the alternatives;
� Landfill and incineration taxes can improve recycling but the extent of the impact
depends upon the extent to which other policies have already led to the
development of the activity;
� Furthermore, if the policies are to decrease pollution they must incentivise the
shift to a better performing alternative method of treatment (via the substitution
price effect) or make it more cost effective for plant operators to include a high
level of abatement equipment in their facilities;
� Landfill bans and restrictions can be implemented either rapidly, with exemptions
in place where infrastructure is not adequately developed, or with a long lead
time, so that infrastructure has time to come on stream. The former has the merit
of being less likely to be politically derailed, but in order to prevent repeated resort
being made to exemptions, these exemptions should be expensive to those who
seek them.
52.15 Prerequisites for Introduction
Success factors in the way that taxes have been introduced have been attributed to
the following:
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� the analytical and policy ground was well prepared in advance of the tax;
� the consultation process helped defuse potential criticisms;
� the tax was based on externality estimates, which was acceptable to
economically knowledgeable commentators;
� fiscal neutrality of the tax (the revenue was used to reduce taxes elsewhere in
the economy); and
� the move to a weight-based tax and the use of revenues for environmental
remediation schemes that were favoured by the environmental lobby.
Complementary Policies such as those described in Section 52.9 are very much to be
recommended with the implementation of any taxes / bans that affect the majority of
the residual stream. This is so that other avenues for the disposal of the material
become available. In addition, the following are recommended;
� The implementation of bans and levies needs to pre-empt the potential for
additional illegal behaviour. Changing price structures leads to changed incentives
to avoid the effects of the instruments. Regulatory enforcement needs to choke
off such activities.
29/09/09