Evaluating municipal solid waste management efficiency in Iceland: A data envelopment analysis of socioeconomic and geographic influences

This study aims to evaluate the efficiency of municipal solid waste management in Iceland, focusing on the factors influencing waste generation and recycling rates. Utilizing Data Envelopment Analysis (DEA) and regression techniques, the research seeks to provide insights into the challenges that municipalities face in managing waste effectively, particularly regarding their unique socioeconomic and geographic characteristics. The analysis covers 48 of Iceland's 69 municipalities from 2019 to 2021, employing input- and output-oriented DEA models. It explores the relationship between waste management costs, solid waste per capita, recycling rates, and socioeconomic factors such as age, population size, disposable income, and rural-urban ratios. The results reveal significant disparities in efficiency among municipalities. Larger population sizes and smaller geographical areas positively correlate with waste management efficiency, while older populations and higher waste management costs negatively impact performance. The relationship between rural populations and efficiency is complex, highlighting the influence of both population density and socioeconomic characteristics on waste management outcomes. This research provides valuable insights into waste management efficiency in rural and Arctic regions. It emphasises the necessity for tailored strategies that consider each municipality's unique characteristics and resource limitations, advocating for targeted policies and government support to improve waste management practices and promote sustainability in Arctic and rural communities. Additionally, the findings enhance the current literature by addressing a gap in understanding waste management efficiency in remote and lesser-studied regions, thus informing both academic discussions and practical applications in policy formation. • Waste management efficiency varies significantly among Iceland's municipalities. • Socioeconomic factors significantly influence waste generation and recycling rates. • Geographic size impacts efficiency; larger municipalities tend to be less efficient. • There exists a complex relationship between rurality and waste management efficiency. • Tailored strategies are vital to improve waste management in rural municipalities.