Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region

The article discusses possible reasons for the failure of Russia’s waste management industry reform and highlights the ownership blurring as a factor that may hinder the transition to a circular economy, which has been proposed as one of the outcomes of the reform. This study aims to address possibl...

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Main Authors: Andrey E. Shastitko, Karina A. Ionkina, Olga A. Markova, Anton N. Morozov
Format: Article
Language:English
Published: Immanuel Kant Baltic Federal University 2021-03-01
Series:Baltic Region
Subjects:
Online Access:https://journals.kantiana.ru/baltic_region/4816/28567/
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author Andrey E. Shastitko
Karina A. Ionkina
Olga A. Markova
Anton N. Morozov
author_facet Andrey E. Shastitko
Karina A. Ionkina
Olga A. Markova
Anton N. Morozov
author_sort Andrey E. Shastitko
collection DOAJ
description The article discusses possible reasons for the failure of Russia’s waste management industry reform and highlights the ownership blurring as a factor that may hinder the transition to a circular economy, which has been proposed as one of the outcomes of the reform. This study aims to address possible obstacles to transitioning to a circular economy in the Kaliningrad region. Methodologically, the study uses instruments of new institutional economics: by comparing discrete institutional alternatives for municipal solid waste (MSW) management, the authors propose incentive schemes that will likely stimulate the transition to a circular economy in the region. It is shown that, in Russia, the identification of the holder of the property right to waste is complicated. This can be a hindrance to effective MSW management. Moreover, objects handled by MSW management services may fall into different types, but at the same time, it is possible to transfer objects from one type to another. One of the ways to improve the exclusion of services of MSW utilization is the introduction of incentive tariffs. Low-rise housing in the Kaliningrad region makes it an ideal region for the introduction of such a scheme. When calculating the unsorted waste transport fee, a multiplier can be used to reduce the payment for waste-separating households. This can serve as an additional incentive for overcoming collective action problem in MSW collecting and sorting. To prevent social resistance to such a policy, incentive schemes should be implemented on a voluntary basis.
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spelling doaj.art-ec487540f8e04ed2865db0033fa0ae7f2022-12-21T18:43:59ZengImmanuel Kant Baltic Federal UniversityBaltic Region2079-85552310-05242021-03-01131234710.5922/2079-8555-2021-1-2Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad regionAndrey E. Shastitko0https://orcid.org/0000-0002-6713-069XKarina A. Ionkina1https://orcid.org/0000-0001-6333-7282Olga A. Markova2https://orcid.org/0000-0002-3512-6282Anton N. Morozov3https://orcid.org/0000-0001-5402-8023Lomonosov Moscow State University; Centre for Competition and Economic Regulation Studies, the Russian Presidential Academy of the National Economy and Public AdministrationLomonosov Moscow State University; Centre for Competition and Economic Regulation Studies, the Russian Presidential Academy of the National Economy and Public AdministrationLomonosov Moscow State University; Centre for Competition and Economic Regulation Studies, the Russian Presidential Academy of the National Economy and Public Administration; National Research University Higher School of EconomicsLomonosov Moscow State University; Centre for Competition and Economic Regulation Studies, the Russian Presidential Academy of the National Economy and Public Administration; National Research University Higher School of EconomicsThe article discusses possible reasons for the failure of Russia’s waste management industry reform and highlights the ownership blurring as a factor that may hinder the transition to a circular economy, which has been proposed as one of the outcomes of the reform. This study aims to address possible obstacles to transitioning to a circular economy in the Kaliningrad region. Methodologically, the study uses instruments of new institutional economics: by comparing discrete institutional alternatives for municipal solid waste (MSW) management, the authors propose incentive schemes that will likely stimulate the transition to a circular economy in the region. It is shown that, in Russia, the identification of the holder of the property right to waste is complicated. This can be a hindrance to effective MSW management. Moreover, objects handled by MSW management services may fall into different types, but at the same time, it is possible to transfer objects from one type to another. One of the ways to improve the exclusion of services of MSW utilization is the introduction of incentive tariffs. Low-rise housing in the Kaliningrad region makes it an ideal region for the introduction of such a scheme. When calculating the unsorted waste transport fee, a multiplier can be used to reduce the payment for waste-separating households. This can serve as an additional incentive for overcoming collective action problem in MSW collecting and sorting. To prevent social resistance to such a policy, incentive schemes should be implemented on a voluntary basis.https://journals.kantiana.ru/baltic_region/4816/28567/municipal solid wasterecyclingrecoveryexternalitiescircular economyincentive schemes (pay-as-you-throw)
spellingShingle Andrey E. Shastitko
Karina A. Ionkina
Olga A. Markova
Anton N. Morozov
Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
Baltic Region
municipal solid waste
recycling
recovery
externalities
circular economy
incentive schemes (pay-as-you-throw)
title Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
title_full Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
title_fullStr Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
title_full_unstemmed Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
title_short Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region
title_sort institutional approach to assessing the transition to a circular economy the case of the kaliningrad region
topic municipal solid waste
recycling
recovery
externalities
circular economy
incentive schemes (pay-as-you-throw)
url https://journals.kantiana.ru/baltic_region/4816/28567/
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AT olgaamarkova institutionalapproachtoassessingthetransitiontoacirculareconomythecaseofthekaliningradregion
AT antonnmorozov institutionalapproachtoassessingthetransitiontoacirculareconomythecaseofthekaliningradregion