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Economies of Scale and Scope: A Cost Analysis of Municipal Solid Waste Services

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  • Scott J. Callan
  • Janet M. Thomas

Abstract

The economics literature in municipal solid waste (MSW)markets is concerned primarily with demand-side issues and the associated policy implications. Few have studied the cost structure of this market, and none model the multiple product nature of MSWservices. We argue that the production of MSWservices has two major components Ð disposal and recycling, and that cost complementarities between the two activities may exist. Hence, we specify a multipleoutput cost structure, which models the relationship between recycling and disposal activity and investigates the extent of product-speci® c scale economies and overall scope economies in this market.

Suggested Citation

  • Scott J. Callan & Janet M. Thomas, 2001. "Economies of Scale and Scope: A Cost Analysis of Municipal Solid Waste Services," Land Economics, University of Wisconsin Press, vol. 77(4), pages 548-560.
    • Handle: RePEc:uwp:landec:v:77:y:2001:i:4:p:548-560
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    References listed on IDEAS

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    4. Stevens, Barbara J, 1978. "Scale, Market Structure, and the Cost of Refuse Collection," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 438-448, August.
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    6. Scott J. Callan & Janet M. Thomas, 1997. "The Impact of State and Local Policies on the Recycling Effort," Eastern Economic Journal, Eastern Economic Association, vol. 23(4), pages 411-423, Fall.
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    More about this item

    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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