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

  • 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)

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.

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File URL: http://web.econ.unito.it/prato/papers/n20.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by Former Department of Economics and Public Finance "G. Prato", University of Torino in its series Working papers with number 20.

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Length: 24 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:tur:wpaper:20
Contact details of provider: Postal: Corso Unione Sovietica, 218/bis - 10134 TORINO
Phone: +39 011 670.6129
Fax: +39 011 670.6062
Web page: http://eco83.econ.unito.it/prato/

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  1. Barbara Antonioli & Massimo Filippini, 2002. "Optimal Size in the Waste Collection Sector," Review of Industrial Organization, Springer, vol. 20(3), pages 239-252, May.
  2. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  3. Cambini Carlo & Filippini Massimo & Piacenza Massimiliano & Vannoni Davide, 2011. "Corporatization and Firm Performance: Evidence from Publicly-Provided Local Utilities," Review of Law & Economics, De Gruyter, vol. 7(1), pages 191-213, July.
  4. Piacenza, Massimiliano & Turati, Gilberto & Vannoni, Davide, 2010. "Restructuring hospital industry to control public health care expenditure: The role of input substitutability," Economic Modelling, Elsevier, vol. 27(4), pages 881-890, July.
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