Closing the loop: The challenges of regulation in municipal solid waste management

Abstract

Regulation has a profound impact on markets and in recent decades it has also been perceived as a solution to a wide range of environmental problems. However, regulation may also induce barriers and undesirable effects. In recent years, there has been a rise in awareness for the need to monitor, evaluate and supervise regulation itself, its effectiveness and its associated processes via Regulatory Impact Analysis and Assessment (RIA). One of the significant environmental challenges characterized by extensive regulation is Municipal Solid Waste (MSW) management. MSW is, on the one hand, a significant environmental threat and an economic and social challenge to manage, but, on the other hand, a significant key factor in achieving sustainable production and a circular economy. Understanding the interrelationships between regulation and the MSW market, with its various stakeholders, is crucial to close the MSW loop and achieving a sustainable economy. This paper describes the analysis of the MSW market in Israel that provided an insight and understanding of the impact of regulation on this market and its various stakeholders. The market analysis constituted a focal stage in performing a full RIA of the MSW market in Israel. Findings show that regulation itself may create difficulties and barriers that prevent the implementation of economically and environmentally efficient solutions and obstacles in achieving a circular economy. It is also concluded that an ongoing monitoring and supervision of regulatory processes are of great importance and that RIA should be elaborated continuously.