pesd2025191001

	PRESENT ENVIRONMENT AND SUSTAINABLE DEVELOPMENT Volume 20, Issue no.1/ 2026

	Title: Financial sustainability of the Municipal waste management system in Bulgaria
	Authors : Venelina TSANEVSKA , Olga MANCHEVA-ALI 1 Faculty of Economics, Department of Finances and Accounting, “St. Cyril and St. Methodius” University of Veliko Tarnovo, Bulgaria 2 Faculty of Economics, Department of Tourism,“St. Cyril and St. Methodius” University of Veliko Tarnovo, Bulgaria E-mail : * Corresponding author: o.mancheva@ts.uni-vt.bg
	https://doi.org/10.47743/pesd2026201018
	VIEW FULL TEXT
	Abstract Municipal waste management in Bulgaria is undergoing a transition toward a circular economy, seeking a balance between environmental goals and financial sustainability. This study analyzes the relationship between the dynamics of waste generation and the financial mechanisms for its management (2019–2024) to assess the effectiveness of the “polluter pays” principle. The assessment is based on official national statistics, using quantitative and comparative analyses, together with an analysis of operational and fiscal efficiency ratios. It has been established that a 'decoupling' effect is absent at the national level, as income growth and economic expansion continue to drive an increase in waste generation, reaching 496 kg per capita in 2024 – an indicator calculated based on the total volume of generated municipal waste, without differentiation by source of generation (households, commercial entities, or institutions). Simultaneously, a positive technological shift is observed, characterized by a persistent reduction in direct landfilling and expanded pre-treatment practices. Financially, the sector has transitioned from a deficit to full self-sufficiency, achieving over 110% cost coverage due to fee revenues growing faster than management expenditures. Despite the stability achieved at the macro level, the current charging model based on property valuation creates a structural imbalance – it generates fiscal surpluses but fails to provide sufficient economic incentives to reduce waste at the source, which necessitates the accelerated implementation of “pay-as-you-throw” (PAYT) systems. The obtained results outline a dual profile of the system – financially stable and infrastructurally modernizing, but still not fully oriented toward the prevention of waste generation. The current financial stability remains structurally incomplete without a parallel shift toward a consumption-based charging model that actively incentivizes waste reduction at the source.

	References Alema1. Abu-Qdais, H.A.; Shatnawi, N.; Al-Shahrabi, R. (2023) Modeling the Impact of Fees and Circular Economy Options on the Financial Sustainability of the Solid Waste Management System in Jordan. Resources, 12(3), 32. https://doi.org/10.3390/resources12030032 Agócsová, Á.; Chodasová, Z. (2021) Innovative Methods in Sustainable Urban Development and Water Management. TEM Journal, 10(2), 757–765. https://doi.org/10.18421/TEM102-33 Akdim, M.; Sabiri, A.; Akdim, H.; Daoud, M.; Laaoaune, M.; Akdim, B. (2025) Eco-sustainability awareness, intellectual capital and education in the Moroccan Oases. Present Environment and Sustainable Development, 19(1). https://doi.org/10.47743/pesd2025191004 Armaki, S.S.M.; Roudi, A.M. (2024) A Strategic model of municipal solid waste minimization based on decision-making and public participation. Present Environment and Sustainable Development, 18(1). https://doi.org/10.47743/pesd2024181011 Awino, F.B.; Apitz, S.E. (2024) Solid waste management in the context of the waste hierarchy and circular economy frameworks: An international critical review. Integrated Environmental Assessment and Management, 20(1), 9–35. https://doi.org/10.1002/ieam.4774 Azis, M.Q. (2026) The social root of technical failure: A bibliometric analysis on research focus shift from RDF quality control to community social capacity in waste management. Waste, Society and Sustainability, 3(1), 57–74. https://doi.org/10.61511/wass.v3i1.2026.2784 Bashir, I.; Lone, F.A.; Bhat, R.A.; Mir, S.A.; Dar, Z.A.; Dar, S.A. (2020) Concerns and Threats of Contamination on Aquatic Ecosystems. In Bioremediation and Biotechnology: Sustainable Approaches to Pollution Degradation; Springer: Cham, Switzerland, 2020; pp. 1–26. https://doi.org/10.1007/978-3-030-35691-0_1 Blagoeva, N.; Georgieva, V.; Dimova, D. (2023) Relationship between GDP and Municipal Waste: Regional Disparities and Implication for Waste Management Policies. Sustainability, 15(21), 15193. https://doi.org/10.3390/su152115193 Braathen, N.A. (2004) Addressing the Economics of Waste: An Introduction. In Addressing the Economics of Waste; OECD Publishing: Paris, France, 2004; pp. 17, 68, 81. https://doi.org/10.1787/9789264106192-2-en Castillo-Giménez, J.; Montañés, A.; Picazo-Tadeo, A.J. (2019) Performance and convergence in municipal waste treatment in the European Union. Waste Management, 85, 222–231. https://doi.org/10.1016/j.wasman.2018.12.025 Chen, D.M.-C.; Bodirsky, B.L.; Krueger, T.; Mishra, A.; Popp, A. (2020) The world's growing municipal solid waste: trends and impacts. Environmental Research Letters, 15, 074021. https://doi.org/10.1088/1748-9326/ab8659 Di Foggia, G.; Beccarello, M. (2023) Designing circular economy-compliant municipal solid waste management charging schemes. Utilities Policy, 81, 101506. https://doi.org/10.1016/j.utlpol.2023.101506 Efeoglu, R. (2025) The Impact of Good Governance on Sustainable Development: Evidence from Balkan Countries. Present Environment and Sustainable Development, 19(2). https://doi.org/10.47743/pesd2025192006 Emmanouil, C.; Papadopoulou, K.; Papamichael, I.; Zorpas, A.A. (2022) Pay-as-You-Throw (PAYT) for Municipal Solid Waste Management in Greece: On Public Opinion and Acceptance. Sustainability, 14(22), 15429. https://doi.org/10.3390/su142215429 Ezeudu, O.B.; Bristow, D. (2024) Financing methods for solid waste management: A review of typology, classifications, and circular economy implications. Sustainable Development, 33(2), 3062–3085. https://doi.org/10.1002/sd.3256 Ferrão, P., Ribeiro, P., & Silva, P. (2008). A management system for end-of-life tyres: A Portuguese case study. Waste Management, 28(3), 604-614. https://doi.org/10.1016/j.wasman.2007.02.033 Gea, M., Spina, F., Revello, R., Fea, E., Gilli, G., Varese, G. C., & Schilirò, T. (2024). Estrogenic activity in wastewater treatment plants through in vitro effect-based assays: Insights into extraction phase. Journal of Environmental Management, 354, 120412. https://doi.org/10.1016/j.jenvman.2024.120412 Gökgöz, F.; Yalçin, E. (2024) Analysing the Circular Economies and Waste Management of European Countries via Decision Models. Present Environment and Sustainable Development, 18(1). https://doi.org/10.47743/pesd2024181003 Laureti, L.; Costantiello, A.; Anobile, F.; Leogrande, A.; Magazzino, C. (2024) Waste Management and Innovation: Insights from Europe. Recycling, 9(5), 82. https://doi.org/10.3390/recycling9050082 Lenkauskaite, J.; Colomer, J.; Bubnys, R. (2020) Students' Social Construction of Knowledge through Cooperative Learning. Sustainability, 12(22), 9606. https://doi.org/10.3390/su12229606 Liçaj, B.; Dauti, M.B.; Tase, M.; Dauti, R. (2025) Green business and sustainability practices in hospitality: an employee perspective. Present Environment and Sustainable Development, 19(1). https://doi.org/10.47743/pesd2025191015 Malindžáková, M.; Puškaš, D.; Culková, K. (2018) Strategic Life Cycle Assessment in Individual Phase of Waste Production. TEM Journal, 7(2), 372–380. https://doi.org/10.18421/TEM72-19 Mihaliková, E.; Lachytová, L. (2020) Analysis of Municipal Waste Separation in Slovakia and Possible Alternatives. TEM Journal, 9(3), 1108–1115. https://doi.org/10.18421/TEM93-36 Ministry of Environment and Water (MoEW). (2021) National Waste Management Plan 2021–2028. Adopted by Decision No. 459 of the Council of Ministers of 17 June 2021; MoEW: Sofia, Bulgaria, 2021; pp. 7, 60, 65–66, 134, 147. Available online: https://www.moew.government.bg/static/media/ups/tiny/????/????-2021-2028/NPUO_2021-2028.pdf (accessed on 11/03/2026) National Statistical Institute (NSI). (2024) Municipal waste – metadata. Euro SDMX Metadata Structure (ESMS). Environment and Energy Accounts Department, last updated on 15 February 2024. Available online: https://dev.nsi.bg/bg/content/2563/?????????/??????-???????? (accessed on 04/03/2026) National Statistical Institute (NSI). (2024, 2025) Statistical Reference Book 2024, 2025; NSI: Sofia, Bulgaria, Available online: https://www.nsi.bg (accessed on 24/02/2026) National Statistical Institute (NSI). (n.d.) Municipal Solid Waste – Statistical Data [dataset]. Available online: https://www.nsi.bg/statistical-data/70/263 (accessed on 04/03/2026) Osinska, M. (2024) The determinants of municipal solid waste management efficiency in EU countries. Economics and Environment, 88(1), 637, p. 2. https://doi.org/10.34659/eis.2024.88.1.637 Pouikli, K. (2020) Concretising the role of extended producer responsibility in European Union waste law and policy through the lens of the circular economy. ERA Forum, 20, 491–508. https://doi.org/10.1007/s12027-020-00596-9 Reis, W.F.; Barreto, C.G.; Capelari, M.G.M. (2023) Circular Economy and Solid Waste Management: Connections from a Bibliometric Analysis. Sustainability, 15(22), 15715. https://doi.org/10.3390/su152215715 Romano, G.; Masserini, L. (2023) Pay-as-you-throw tariff and sustainable urban waste management: An empirical analysis of relevant effects. Journal of Environmental Management, 347, 119211. https://doi.org/10.1016/j.jenvman.2023.119211 Tietenberg, T.; Lewis, L. (2012) Environmental & Natural Resource Economics, 9th ed.; Pearson Education: Boston, MA, USA, 2012; pp. 17, 181, 184, 191, 193. ISBN 978-0-13-139257-1. Todorova, E.; Yunussova, G.; Formazyuk, X.; Kostadinova-Slaveva, A.; Kazkenova, G.; Jetpysbai, G. (2025) Advancing Plastic Waste Management for a Circular Economy: Comparative Insights from Plovdiv (Bulgaria) and Kostanay (Kazakhstan). Processes, 13(888). https://doi.org/10.3390/pr13030888 Vrachovska, M. (2026) Taxation as a Policy Instrument for Environmental Transformation: Evaluations of Bulgarian Practice. In: Busu, M. (ed) ICBE 2025, SPBE, pp. 714–726. Springer. https://doi.org/10.1007/978-3-032-19276-9_46 Local Taxes and Fees Act (LTFA). Prom. SG 117/10.12.1997, last amend. and suppl. SG 30/27.03.2026, Art. 62, Art. 66. Available online: https://www.lex.bg/laws/ldoc/2134174720 (accessed on 27/02/2026) Waste Management Act (WMA). Prom. SG 53/13.07.2012, last amend. and suppl. SG 81/24.09.2024, Art. 31, Additional Provisions. Available online: https://lex.bg/bg/laws/ldoc/2135802037 (accessed on 27/02/2026)

© 2007 Present Environment and Sustainable Development
ISSN 1843-5971 (Printed version) ISSN 2284 – 7820 (online version)

Home Editorial Board

Webdesign Adrian Ursu ©2008 UAIC