Towards Sustainable Waste Management through Cautious Design of Environmental Taxes: The Case of Ethiopia

This research examines the viability of the design of environmental taxes in the achievement of sustainable waste management in the Addis Ababa Administration (AAA) of Ethiopia. It has employed an empirical qualitative method. It first shows the mutual contribution of the achievement of waste management to the progress of sustainable sanitation and water resource management. Secondly, it displays the distributive and incentive roles of environmental taxes in the achievement of sustainable waste management. Thirdly, it indicates that a cautious design of the source, base, scope and rate of environmental taxes is a critical determinant for environmental taxes’ overall success in addressing the prevalent waste mismanagement in Ethiopia. Fourthly, it demonstrates that in the AAA: (1) The sources of solid waste collection, landfill, sewerage service and effluent charges are subject to the principle of legality; (2) the scope of solid waste collection, landfill, sewerage service and effluent charges is appropriate; (3) while the base of sewerage service and effluent charges is efficient, the base of solid waste and landfill charges is not at all efficient; and (4) while the rates of solid waste, landfill and sewerage service charges are slightly optimal, the rate of the effluent charge has not yet developed. Fifthly, it reveals that, having a somewhat viable design, solid waste, landfill and sewerage service charges are marginally reinforcing the aspiration of Ethiopia to achieve sustainable sanitation. Sixthly, it uncovers that because Ethiopia has not yet developed the rate of effluent charge, effluent charge is neither internalizing the cost of water resource degradation nor incentivizing sustainable water resource management. Finally, it implies that the aspiration of Ethiopia to achieve sustainable sanitation and water resource management by 2030 is contingent on the cautious design of its waste management taxes.