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The Costs of Disposal and Recycling. An Application to Italian Municipal Solid Waste Services

Author

Listed:
  • Graziano Abrate

    () (University of Eastern Piedmont)

  • Fabrizio Erbetta

    () (University of Eastern Piedmont)

  • Giovanni Fraquelli

    () (University of Eastern Piedmont)

  • Davide Vannoni

    () (Department of Economics and Public Finance "G. Prato", University of Torino)

Abstract

The paper investigates the costs of waste disposal and recycling services by using a well-behaved Composite cost function model. Our estimates on a unique sample of more than 500 Italian municipalities highlight that the refuse collection technology exhibits constant returns to scale as well as scope economies between disposal and recycling. As far as the size of the municipality increases, scope economies rise up to 14%, but they are accompanied with overall diseconomies of scale. Our findings suggest that, on the one hand, joint management of disposal and recycling should be encouraged, and, on the other hand, that strategies aimed at increasing the share of waste sent for recycling would not imply a considerable increase in total costs.

Suggested Citation

  • Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2011. "The Costs of Disposal and Recycling. An Application to Italian Municipal Solid Waste Services," Working papers 20, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  • Handle: RePEc:tur:wpaper:20
    as

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    File URL: http://www.biblioecon.unito.it/biblioservizi/RePEc/tur/wpaper/n20.pdf
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    References listed on IDEAS

    as
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    2. Pulley, Lawrence B & Braunstein, Yale M, 1992. "A Composite Cost Function for Multiproduct Firms with an Application to Economies of Scope in Banking," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 221-230, May.
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    Citations

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    Cited by:

    1. Graziano Abrate & Federico Boffa & Fabrizio Erbetta & Davide Vannoni, 2013. "Corruption, Accountability and Efficiency. An Application to Municipal Solid Waste Services," Working papers 022, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    2. Thomas C. Kinnaman & Kenji Takeuchi (ed.), 2014. "Handbook on Waste Management," Books, Edward Elgar Publishing, number 14571.
    3. Graziano Abrate & Federico Boffa & Fabrizio Erbetta & Davide Vannoni, 2016. "Voters' Information, Corruption, and the Efficiency of Local Public Services," Working papers 035, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    4. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2015. "The cost of corruption in the Italian solid waste industry," Industrial and Corporate Change, Oxford University Press, vol. 24(2), pages 439-465.
    5. repec:fan:macoma:v:html10.3280/maco2017-002003 is not listed on IDEAS
    6. repec:tur:wpapnw:4 is not listed on IDEAS
    7. Giuseppe Cinquegrana & Serena Migliardo & Domenico Sarno, 2016. "Comparative analysis of private and public provision of the water and waste services by the Italian municipalities," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 149-176.
    8. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2012. "Size and Density Economies in Refuse Collection," Carlo Alberto Notebooks 274, Collegio Carlo Alberto.
    9. Alessio D'Amato & Massimiliano Mazzanti & Francesco Nicolli & Mariangela Zoli, 2014. "Illegal Waste Disposal, Territorial Enforcement and Policy. Evidence from regional data," SEEDS Working Papers 0314, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Feb 2014.

    More about this item

    Keywords

    Solid waste; recycling; cost functions;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L99 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Other

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