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Cost savings of contracting out refuse collection Author info | Abstract | Publisher info | Download info | Related research | Statistics Elbert Dijkgraaf (Erasmus University Rotterdam)
Raymond Gradus (Erasmus University Rotterdam & Min. of Social Affairs)
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registered author(s):
The article discusses the possible cost savings of contracting out refuse collection in the Netherlands. According to foreign econometric studies, contracting out refuse collection leads to cost savings of approximately 20%. Our findings indicate that similar cost savings apply to the Netherlands. However, different production technologies apply to internal or external refuse collection. The Chow test, which examines whether the estimated coefficients on the explanatory variables are the same, reveals that different cost functions have to be estimated for the sub-samples. We show that the postulated cost savings can even be larger, when taking account of effects of different production technologies. Though significant cost savings exist on contracting out waste collection, households will not experience these cost savings on a one to one basis. Private refuse collection firms must pay VAT while public firms are exempted. At present the Dutch fiscal system hinders a more pronounced role for private refuse collection firms.
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Paper provided by EconWPA in its series Public Economics with number
0409002.
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Length: 19 pages
Date of creation: 01 Sep 2004Date of revision:
Handle: RePEc:wpa:wuwppe:0409002Note: Type of Document - pdf; pages: 19Contact details of provider: Web page: http://129.3.20.41
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Keywords: Refuse collection ; cost estimation ; Chow stability test ; pooling ; VAT ; Other versions of this item:
Find related papers by JEL classification: D21 - Microeconomics - - Production and Organizations - - - Firm Behavior H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
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References listed on IDEAS 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.
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references Cited by : (explanations , 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.)
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"The diffusion of differentiated waste disposal taxes in the Netherlands ,"
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Paul H. Jensen & Robin E. Stonecash, 2004.
"The Efficiency of Public Sector Outsourcing Contracts: A Literature Review ,"
Melbourne Institute Working Paper Series
wp2004n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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Germà Bel & Antón Costas, 2006.
"Do Public Sector Reforms Get Rusty? Local Privatization in Spain ,"
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Pierre-Pascal Gendron, 2005.
"Value-Added Tax Treatment of Public Sector Bodies and Non-Profit Organizations: A Developing Country Perspective ,"
International Tax Program Papers
0514, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
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Germà Bel & Melania Mur, 2008.
"Intermunicipal cooperation and privatization of solid waste services among small municipalities in Spain ,"
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200816, University of Barcelona, Research Institute of Applied Economics, revised Dec 2008.
[Downloadable!]
Germa Bel & Anton Costas, 2004.
"Do public sector reforms get rusty? An empirical analysis on privatization of solid waste collection ,"
Public Economics
0409014, EconWPA.
[Downloadable!]
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