Fighting Crime to Improve Recycling: Evaluating an Anti-Mafia Policy on Source Separation of Waste

It is well-known that organized crime has a negative effect on waste management systems. This paper examines the impact of Italy’s Law 164/1991. This is one of the most stringent measures imposed by Italy on organized crime and was designed to counteract suspected mafia infiltration by mandating the dissolution of corrupt city councils. We investigate whether this law has led to a more efficient waste management system in Italy in terms of improving selective collection of waste for recycling. The staggered enforcement of Law 164/1991 allows us to show that both the percentage and tonnes per-capita of selective waste collection in the municipalities in Apulia, Calabria, Campania and Sicily increased sharply following the first elections after compulsory administration compared to the control group of city councils not subject to dissolution. The average treatment effect of the anti-mafia policy shows a 5 percentage points and 17.5 Kg increase in respective percentage and per-capita tonnes of selective waste collection. This outcome was due to the firing of the city council, which severed connections between organized crime and local politicians. The newly elected, less corrupt council officials implemented actions did not favour organized crime, which led to more effective separated urban waste collection and lower levels of illegal waste dumping.