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Intermunicipal cooperation and privatization of solid waste services among small municipalities in Spain

Author

Listed:
  • Germà Bel

    (Faculty of Economics, University of Barcelona)

  • Melania Mur

    (Universidad de Zaragoza)

Abstract

The aim of this paper is to analyze the effects of intermunicipal cooperation and privatization on the delivery costs of urban solid waste services. The results of our empirical analysis, which we conducted among a sample of very small municipalities, indicate that small towns that cooperate incur lower costs for their waste collection service. Cooperation also raises collection frequency and improves the quality of the service in small towns. By contrast, the form of production, whether it is public or private, does not result in systematic differences in costs. Interestingly, the degree of population dispersion has a significant positive relation with service costs.No evidence of scale economies is found because, it would seem, small municipalities exploit them by means of intermunicipal cooperation.

Suggested Citation

  • Germà Bel & Melania Mur, 2008. "Intermunicipal cooperation and privatization of solid waste services among small municipalities in Spain," IREA Working Papers 200816, University of Barcelona, Research Institute of Applied Economics, revised Dec 2008.
    • Handle: RePEc:ira:wpaper:200816
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    File URL: http://www.ub.edu/irea/working_papers/2008/200816.pdf
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    References listed on IDEAS

    as
    1. Germà Bel & Elbert Dijkgraaf & Xavier Fageda & Raymond Gradus, 2008. "Similar problems, different solutions: Comparing refuse collection in the Netherlands and Spain," IREA Working Papers 200815, University of Barcelona, Research Institute of Applied Economics, revised Nov 2008.
    2. Eoin Reeves & Michael Barrow, 2000. "The Impact of Contracting Out on the Costs of Refuse Collection Services - The Case of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 129-150.
    3. E. Dijkgraaf & R.H.J.M. Gradus (ed.), 2008. "The Waste Market," Springer Books, Springer, number 978-1-4020-8711-0, April.
    4. Dubin, Jeffrey A & Navarro, Peter, 1988. "How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(2), pages 217-241, Fall.
    5. 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.
    6. Henry Ohlsson, 2003. "Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection," Fiscal Studies, Institute for Fiscal Studies, vol. 24(4), pages 451-476, December.
    7. 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.
    8. E. Dijkgraaf & R. Gradus, 2003. "Cost Savings of Contracting Out Refuse Collection," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 149-161, June.
    9. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    10. E. Dijkgraaf & R. H. J. M. Gradus, 2005. "Collusion in the Dutch waste collection market," Industrial Organization 0502006, University Library of Munich, Germany.
    11. E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
    12. Domberger, S & Meadowcroft, S & Thompson, D J, 1986. "Competitive tendering and efficiency: the case of refuse collection," Fiscal Studies, Institute for Fiscal Studies, vol. 7(4), pages 69-87, November.
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    Cited by:

    1. Germà Bel & Marianna Sebo, 2018. "“Does inter-municipal cooperation really reduce delivery costs? An empirical evaluation of the role of scale economies, transaction costs, and governance arrangements”," IREA Working Papers 201816, University of Barcelona, Research Institute of Applied Economics, revised Jul 2018.

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    Keywords

    local government; intermunicipal cooperation; privatization; contracting-out; solid waste collection.;
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