Waste management and household effort: toward an enhanced ADF policy

Advanced Disposal Fees (ADF) are rather popular in waste management policies, but they cease any waste reduction effort at the household level. We propose a waved ADF policy which enhances this system by giving to the households the possibility to sign a waste reduction contract in counterpart of a lower fee. These contracts satisfy an incentive, a budget balancing and a participation constraints. For these feasible contracts, we show that this enriched ADF policy is welfare improving and always induces a waste reduction e¤ort.