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Similar problems, different solutions: Comparing refuse collection in the Netherlands and Spain

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Author Info
Germà Bel () (Faculty of Economics, University of Barcelona)
Elbert Dijkgraaf () (Erasmus University Rotterdam)
Xavier Fageda () (Faculty of Economics, University of Barcelona)
Raymond Gradus () (Vrije Universiteit Amsterdam)

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Abstract

Local public service provision can vary greatly because of differences in institutional arrangements, public service markets, and national traditions regarding government intervention. In this paper we compare the procedures adopted by the local governments of the Netherlands and Spain in arranging for the provision of solid waste collection. We find that Spain faces a consolidation problem, opting more frequently to implement policies of privatization and cooperation, at the expense of competition. By contrast, the Netherlands has, on average, larger municipalities, resorting somewhat less to privatization and cooperation, and more to competition. The two options - cooperation and competition - have their merits when striving to strike a balance between transaction costs and scale economies. The choices made in organizational reform seem to be related to several factors, among which the nature of the political system and the size of municipalities appear to be relevant.

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File URL: http://www.ub.edu/irea/working_papers/2008/200815.pdf
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Publisher Info
Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200815.

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Length: 27 pages
Date of creation: Nov 2008
Date of revision: Nov 2008
Handle: RePEc:ira:wpaper:200815

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Web page: http://www.ub.edu/irea/
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Related research
Keywords: Local governments; contracting-out; privatization; inter-municipal cooperation.;

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  1. 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. [Downloadable!]
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This page was last updated on 2009-11-25.


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