Title: A landfill tax refund scheme: analysis and simulation for local governments in the UK

Authors: Yoko Nagase; Wolfram Berger

Addresses: Business School, Oxford Brookes University, Headington Campus, Oxford, OX3 0BP, UK ' Brandenburg University of Technology, Erich-Weinert-Strasse 1, 03046 Cottbus, Germany

Abstract: Taxes on waste such as a conventional landfill tax belong to a policymakers standard arsenal to reduce pollution, encourage recycling and reuse of materials, and promote the circular economy. Yet introducing or tightening such taxes typically causes political resistance from the regulated parties. We propose a tax refund scheme that can mitigate this problem. Under the scheme, waste management authorities would be required to pay a tax on landfill waste before the resulting tax revenue is rebated to them. Waste-reducing efforts would be stimulated because the refund structure rewards authorities that outperform others in reducing landfilled waste. Using the 2019–2020 data on municipal solid waste we present a simulation of our policy proposal for the UK that can serve as a policy design blueprint for other countries. The information requirements for the policy scheme are low, and its design and administration are simple.

Keywords: waste management; municipal solid waste; MSW; landfill waste; landfill tax; LT; refundable disposal tax; local government finance; UK; circular economy; economic analysis and simulation; revenue-neutral policy scheme.

DOI: 10.1504/IJEWM.2025.148043

International Journal of Environment and Waste Management, 2025 Vol.38 No.1, pp.1 - 23

Received: 28 May 2023
Accepted: 03 Jun 2024
Published online: 15 Aug 2025 *

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