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Cost Savings of Contracting Out Refuse Collection in The Netherlands

In: The Waste Market

Author

Listed:
  • E. Dijkgraaf

    (Erasmus University Rotterdam)

  • R.H.J.M. Gradus

    (VU University Amsterdam)

Abstract

This chapter discusses the possible cost savings of contracting out refuse collection in the Netherlands. Our findings indicate that similar to foreign econometric studies cost savings of approximately 15–20% apply to the Netherlands. Moreover, compared with the existing literature we show that different production technologies apply to internal municipal waste collection units and external refuse collection firms. Different cost functions have to be estimated for the sub-samples. Though significant cost savings exist on contracting out waste collection, households will not experience these cost savings on a one to one basis. Private refuse collection firms must pay VAT while public entities are exempted. Thus, the fiscal system hinders a more pronounced role for private refuse collection firms.

Suggested Citation

  • E. Dijkgraaf & R.H.J.M. Gradus, 2008. "Cost Savings of Contracting Out Refuse Collection in The Netherlands," Springer Books, in: E. Dijkgraaf & R.H.J.M. Gradus (ed.), The Waste Market, chapter 0, pages 9-21, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4020-8711-0_2
    DOI: 10.1007/978-1-4020-8711-0_2
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    Cited by:

    1. Hiroki Baba & Yasushi Asami, 2020. "Estimating the minimal efficient scale and the effect of intermunicipal cooperation on service provision areas for waste treatment in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 4(1), pages 139-158, February.
    2. Hiroki Baba & Yasushi Asami, 2022. "Cost-efficient factors in local public spending: Detecting relationships between local environments, population size and urban area category," Environment and Planning B, , vol. 49(1), pages 241-258, January.

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