Organized crime and waste management costs

The paper investigates the link between organized crime and municipal solid waste management costs. Using a panel dataset of 7069 Italian municipalities in the 2015-19 period, we find that organized crime operating in the environmental sector is associated with an increase in waste management costs. The effect of organized crime is stronger in macro-regions where organized crime is historically rooted. These results are established after controlling for municipality fixed effects as well as national and regional trends in the total cost of service delivery. This paper contributes to a deeper understanding of local service costs and provides implications for policymakers.