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Measuring and explaining the cost efficiency of municipal solid waste collection and processing services

  • Rogge, Nicky
  • De Jaeger, Simon
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    This paper proposes an adjusted version of the popular efficiency measurement technique data envelopment analysis (DEA) that makes it possible (1) to evaluate the cost efficiency of municipalities in the collection and processing of multiple household waste fractions, (2) robustifying the cost efficiency evaluations for the impact of measurement errors in the data or municipalities with outlying and atypical performances (if present in the sample set), and (3) to correct the evaluations for differences in the operating environments of municipalities (e.g., factors such as demography and median income of the municipality population). The paper illustrates the usefulness of the methodology by carrying out and analyzing a cost efficiency evaluation using data on 293 municipalities in Flanders, Belgium, for the year 2008.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0305048312001867
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    Article provided by Elsevier in its journal Omega.

    Volume (Year): 41 (2013)
    Issue (Month): 4 ()
    Pages: 653-664

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    Handle: RePEc:eee:jomega:v:41:y:2013:i:4:p:653-664
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    1. Elbert Dijkgraaf & Raymond Gradus, 2004. "Cost savings of contracting out refuse collection," Public Economics 0409002, EconWPA.
    2. Ruggiero, John, 1996. "On the measurement of technical efficiency in the public sector," European Journal of Operational Research, Elsevier, vol. 90(3), pages 553-565, May.
    3. Wade Cook & Moez Hababou & Hans Tuenter, 2000. "Multicomponent Efficiency Measurement and Shared Inputs in Data Envelopment Analysis: An Application to Sales and Service Performance in Bank Branches," Journal of Productivity Analysis, Springer, vol. 14(3), pages 209-224, November.
    4. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
    5. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, 09.
    6. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    7. Cook, Wade D. & Green, Rodney H., 2004. "Multicomponent efficiency measurement and core business identification in multiplant firms: A DEA model," European Journal of Operational Research, Elsevier, vol. 157(3), pages 540-551, September.
    8. Nuria Bosch Roca & Francisco Pedraja & Javier Suarez Pandiello, 1999. "Measuring the efficiency in spanish municipal refuse collection services," Working Papers in Economics 46, Universitat de Barcelona. Espai de Recerca en Economia.
    9. Cinzia Daraio & Leopold Simar, 2005. "Conditional Nonparametric Frontier Models for Convex and Non Convex Technologies: a Unifying Approach," LEM Papers Series 2005/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "Data envelopment analysis 1978–2010: A citation-based literature survey," Omega, Elsevier, vol. 41(1), pages 3-15.
    11. Scott J. Callan & Janet M. Thomas, 2001. "Economies of Scale and Scope: A Cost Analysis of Municipal Solid Waste Services," Land Economics, University of Wisconsin Press, vol. 77(4), pages 548-560.
    12. Daraio, Cinzia & Simar, Leopold, 2006. "A robust nonparametric approach to evaluate and explain the performance of mutual funds," European Journal of Operational Research, Elsevier, vol. 175(1), pages 516-542, November.
    13. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    14. Ray, Subhash C., 1988. "Data envelopment analysis, nondiscretionary inputs and efficiency: an alternative interpretation," Socio-Economic Planning Sciences, Elsevier, vol. 22(4), pages 167-176.
    15. Stevens, Barbara J, 1978. "Scale, Market Structure, and the Cost of Refuse Collection," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 438-48, August.
    16. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    17. Ruggiero, John, 1998. "Non-discretionary inputs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 111(3), pages 461-469, December.
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