Privatization, cooperation and costs of solid waste services in small towns
AbstractThis paper analyzes the cost implications of privatization and cooperation in the provision of solid waste services for a sample of small municipalities. In conducting this empirical analysis, a survey is first designed and administered to municipalities in the Spanish region of Aragon, and then an estimation of the determinants of service costs is undertaken, considering the possible endogeneity of delivery choices. Our findings indicate that cooperation is more effective than privatization in saving costs. Both production forms can enable small municipalities to cut costs by exploiting scale economies. However, the fact that inter-municipal cooperation involves lower transaction costs and is less likely to be affected by competition problems would seem to account for the fact that it is a more effective way of reducing costs.
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Bibliographic InfoPaper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201111.
Length: 31 pages
Date of creation: Jul 2011
Date of revision: Jul 2011
Privatization; cooperation; costs; solid waste. JEL classification:L33; R51; H72.;
Find related papers by JEL classification:
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- was - - - - - -
- JEL - Labor and Demographic Economics - - - - -
- cla - - - - - -
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-ENV-2011-07-21 (Environmental Economics)
- NEP-REG-2011-07-21 (Regulation)
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