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The Organization of Local Solid Waste and Recycling Markets: Public and Private Provision of Services

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  • Walls, Margaret
  • MacAuley, Molly K.
  • Anderson, Soren T.

Abstract

We study determinants of market organization of local public services by an empirical examination of one of the most visible municipal services, residential waste management. Using a multinomial logit model and data for 1,000 U.S. communities, we explore the effect of political influence, voter ideology, environmental constraints, production costs (i.e., "economies of density"), and contracting transaction costs on a community's choice of market arrangement for waste collection and recycling. We find that cost factors are a significant determinant of service delivery method. In contrast, few of the political variables are statistically significant. These results hold for our models of both waste and recycling, lending further evidence to the conclusion that local governments emphasize costs when choosing between private and public provision.

Suggested Citation

  • Walls, Margaret & MacAuley, Molly K. & Anderson, Soren T., 2003. "The Organization of Local Solid Waste and Recycling Markets: Public and Private Provision of Services," Discussion Papers 10892, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10892
    DOI: 10.22004/ag.econ.10892
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    Cited by:

    1. Calcott, Paul & Walls, Margaret, 2005. "Waste, recycling, and "Design for Environment": Roles for markets and policy instruments," Resource and Energy Economics, Elsevier, vol. 27(4), pages 287-305, November.
    2. Massarutto, Antonio, 2007. "Municipal waste management as a local utility: Options for competition in an environmentally-regulated industry," Utilities Policy, Elsevier, vol. 15(1), pages 9-19, March.
    3. Benjamin Dachis, 2010. "Picking up Savings: The Benefits of Competition in Municipal Waste Services," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 308, September.
    4. Cui, Hailong & Sošić, Greys, 2019. "Recycling common materials: Effectiveness, optimal decisions, and coordination mechanisms," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1055-1068.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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