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Co-Production in Local Public Service Delivery: The Case of Waste Management

Author

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  • Di Liddo Giuseppe

    (Department of Economics, Management and Business Law, University of Bari "Aldo Moro", Bari, Italy)

  • Vinella Annalisa

    (Department of Economics and Finance, University of Bari "Aldo Moro", Bari, Italy)

Abstract

In a simple model of waste management, we analyse the basic aspects of co-production in local public service delivery. Our results suggest that citizen involvement may lead to an expansion of the production possibility frontier, if waste sorting is made sufficiently convenient, relative to work, through an appropriate tax policy. However, by diverting time away from work, this policy may trigger a tax base erosion phenomenon. We find that the incentive power of the tax should be high (low) when local preferences for the service are very high (low) relative to local incomes. In the intermediate situation, two cases arise. First, when preferences are (not very) low relative to incomes, taxation should pursue resource collection purposes and be deprived of its incentive effects. Second, when preferences are middle-to-high relative to incomes, the trade-off between incentive provision and tax base erosion causes the optimal tax rate to first increase, then decrease.

Suggested Citation

  • Di Liddo Giuseppe & Vinella Annalisa, 2020. "Co-Production in Local Public Service Delivery: The Case of Waste Management," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(4), pages 1-27, October.
    • Handle: RePEc:bpj:bejeap:v:20:y:2020:i:4:p:27:n:2
    DOI: 10.1515/bejeap-2019-0403
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    References listed on IDEAS

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    1. Stephen P Osborne & Zoe Radnor & Kirsty Strokosch, 2016. "Co-Production and the Co-Creation of Value in Public Services: A suitable case for treatment?," Public Management Review, Taylor & Francis Journals, vol. 18(5), pages 639-653, May.
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    Cited by:

    1. Giuseppe Di Liddo & Annalisa Vinella, 2021. "Centralized standards and local taxation in municipal waste management," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 603-619, December.

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    More about this item

    Keywords

    co-production; local public services; waste management; waste sorting; local taxation; H40; H71; H76;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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