Money Laundering and Illegal Trafficking of Waste: Evidence From Italian Provinces

ABSTRACT Money laundering and waste‐related crimes are widely studied by the literature. However, little attention has been paid to the connection between the latter and the former. Using Italian data at the provincial level, the analysis presented here shows that waste‐related crimes also generate illegal proceeds that increase the flows of dirty money that need laundering. Moreover, evidence about cross‐provincial spillovers is provided. Fighting money laundering and following the trail of dirty money (perhaps also internationally) may help decrease illegal waste disposals and trafficking, thereby reducing the yields generated by these crimes.