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IR11-011_Bel-Fageda-Mur.pdf (627.44 KB)

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Working paper

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2011

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cc-by-nc-nd, (c) Bel i Queralt et al., 2011
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/58517

Privatization, cooperation and costs of solid waste services in small towns

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Abstract

This paper analyzes the cost implications of privatization and cooperation in the provision of solid waste services for a sample of small municipalities. In conducting this empirical analysis, a survey is first designed and administered to municipalities in the Spanish region of Aragon, and then an estimation of the determinants of service costs is undertaken, considering the possible endogeneity of delivery choices. Our findings indicate that cooperation is more effective than privatization in saving costs. Both production forms can enable small municipalities to cut costs by exploiting scale economies. However, the fact that inter-municipal cooperation involves lower transaction costs and is less likely to be affected by competition problems would seem to account for the fact that it is a more effective way of reducing costs.

Subject

Privatització, Ajuda econòmica, Empirisme, Control de costos, Municipis

Subject (English)

Privatization, Economic assistance, Empiricism, Cost control, Municipal corporations

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

Citation

BEL I QUERALT, Germà, FAGEDA, Xavier and MUR SANGRÁ, Melania. Privatization, cooperation and costs of solid waste services in small towns. IREA – Working Papers. 2011. Vol.  IR11/11. ISSN 2014-1254. [consulted: 8 of August of 2026]. Available at: https://hdl.handle.net/2445/58517

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