Efficiency Effects of Privatising Refuse Collection: Be careful and Alternatives present
AbstractFor refuse collection, we estimate the cost effects of different institutional modes using panel data for almost all Dutch municipalities between 1998 and 2010. The modes we consider are private contracts, intermunicipal cooperation, public provision and own collection. For private companies, the cost advantage is substantially smaller and non-significant if municipal fixed effects are included. The cost advantage of intermunicipal cooperation is larger in this case than that of privatisation. Moreover, if yearly mode dummies and mode duration are also included, we show that for 2004, 2005 and 2006 a large cost increase is visible for privatisation. Which mode offers the most cost-saving opportunity depends strongly on the year and the mode duration. For private contracts, the duration effects lead to lower costs; for municipal cooperation and public provision, there are extra costs to begin with, which disappear after 5 or 6 years.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-156/3.
Date of creation: 07 Nov 2011
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
Waste collection; private firms; contracting out; fixed effects;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-14 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Domberger, Simon & Jensen, Paul, 1997. "Contracting Out by the Public Sector: Theory, Evidence, Prospects," Oxford Review of Economic Policy, Oxford University Press, vol. 13(4), pages 67-78, Winter.
- 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.
- E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
- Elbert Dijkgraaf & Raymond H J M Gradus, 2008. "Institutional developments in the Dutch waste-collection market," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(1), pages 110-126, February.
- Bernardino Benito & Francisco Bastida & Jose Garcia, 2010. "Explaining differences in efficiency: an application to Spanish municipalities," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 515-528.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.