Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Environmental Policies and Equity Location: D-105 Session Chair: Laura Schürer, University of Oldenburg | |
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Modeling the Economic, Environmental and Distributional Impacts of Plastic Waste PAYT Policies in a Small Island Economy: Evidence from Reunion Island 1: Université de la Réunion, Réunion (France); 2: Université Le Havre, Normandie (France) Plastic waste management has become a major environmental challenge for small island economies characterized by high import dependence, limited recycling infrastructure, and strong structural inequalities. In this context, pay-as-you-throw (PAYT) schemes are increasingly promoted as policy instruments capable of reducing residual waste generation and improving sorting behavior. However, their broader macroeconomic and distributive implications remain insufficiently documented, particularly in insular territories. This study assesses the economic, environmental, and distributional impacts of a weight-based PAYT tax targeting unsorted plastic waste in Reunion Island. To do so, we develop a regional computable general equilibrium (CGE) model extended with a plastic waste and environmental module calibrated on a 2019 Social Accounting Matrix for Reunion Island. The model explicitly represents endogenous sorting behavior, heterogeneous household consumption patterns, physical plastic waste flows, and waste-related greenhouse gas emissions. Three alternative revenue recycling mechanisms are examined: reinvestment in the public waste collection sector, lump-sum transfers to households, and reductions in labor taxation. Results show that the PAYT policy substantially reduces unsorted plastic waste (approximately −14%) and decreases the carbon footprint associated with plastic waste management by approximately −13% across all scenarios. Macroeconomic and distributional outcomes, however, differ significantly depending on the revenue recycling strategy. Recycling revenues through labor tax reductions generates the strongest positive macroeconomic effects, whereas lump-sum redistribution to households negatively affects economic activity. Reinvestment in the public waste collection sector improves economic performance but generates regressive welfare effects for lower-income households. The findings highlight the importance of territorial specificities and revenue recycling mechanisms in designing environmentally effective and socially acceptable waste policies for small island economies. | |