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Effects of Scale and Market Structure on the Costs of Residential Solid Waste Collection in Canadian Cities

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  • Glen Tickner
  • James C. Mcdavid

Abstract

The effects of scale of operation and market structure upon the unit costs of residential solid waste collection are simultaneously estimated for a sample of 100 Canadian cities. The findings point to substantial unit cost differences between public and private (contract) producers of solid waste collection. Private producers are 28% less expensive than their public counterparts. Scale economies were found for the producers in the sample. This finding is generally consistent with research published on American cities, but contradicts earlier research in Canada reported by Kitchen (1976). Important differences in costs attributable to service levels were also discovered. Frequency of collection was a key predictor of costs. Changing the frequency of collection from once per week to once every two weeks reduced unit costs by 34%.

Suggested Citation

  • Glen Tickner & James C. Mcdavid, 1986. "Effects of Scale and Market Structure on the Costs of Residential Solid Waste Collection in Canadian Cities," Public Finance Review, , vol. 14(4), pages 371-393, October.
    • Handle: RePEc:sae:pubfin:v:14:y:1986:i:4:p:371-393
    DOI: 10.1177/109114218601400401
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    References listed on IDEAS

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    1. James Bennett & Manuel Johnson, 1979. "Public versus private provision of collective goods and services: garbage collection revisited," Public Choice, Springer, vol. 34(1), pages 55-63, March.
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    1. Núria Bosch & Francisco Pedraja & Javier Suárez-Pandiello, 2001. "The efficiency of refuse collection services in Spanish municipalities: do non-controllable variables matter?," Working Papers 2001/4, Institut d'Economia de Barcelona (IEB).
    2. Germa Bel & Anton Costas, 2004. "Do public sector reforms get rusty? An empirical analysis on privatization of solid waste collection," Public Economics 0409014, University Library of Munich, Germany.

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