Socio-economic impacts of waste management policy in Slovakia: Comparative analysis among municipalities

Cifranic, Michal and Maris, Martin and Valach, Maros (2025) Socio-economic impacts of waste management policy in Slovakia: Comparative analysis among municipalities. ECOCYCLES, 11 (1). pp. 19-30. ISSN 24162140

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Abstract

The paper investigates fiscal aspects of waste management policy and waste management at the communal level in the Slovak Republic. For this purpose, cross-sectional data on the municipal level averaged over five years (2017 - 2022) were used. The results reveal a significant fiscal gap between municipal waste management revenues and expenses, which are indirectly transferred to the consumers (households), and will worsen their financial situation and the related public welfare. The econometric modelling comprising quantitative and qualitative variables (ANCOVA) model was used to determine the factors significantly impacting waste management expenses. The results suggest that introducing the policy of waste prevention through a higher share of separated waste is associated with a significant increase in waste management expenses. This study contributes to the understanding of the impacts of financial incentives on waste management at the municipal level, revealing an unintended externality that points to a consequence leading to an increase in the financial burden on consumers in the form of additional costs. It is a counter-productive aspect of the policy, which should not cause a decline in public welfare and discourage consumers from waste separation. The results also suggest that current policies to promote separate collection may also inadvertently increase costs for municipalities, affecting their fiscal planning and efficiency, particularly at the environmental level. Further research is recommended in this area to gather more evidence and provide recommendations on the future implementation of waste management policy at the municipal level. For a more successful closure of the investigated issues in waste management, it is necessary to examine and minimize the revealed externalities, thereby ensuring a long-term sustainable waste management policy.

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