Cost efficiency in the management of solid urban waste

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Abstract

Does public-service performance depend on privatisation policy? In the case of urban hygiene it would appear that firm dimension and inter-firm relationships, alternative technologies and landfill capacity are more important. This study focuses specifically on the Italian case and belongs to a series of comparative international studies. The general aim of the paper is to provide public-sector administrators with clear guidelines. Waste collection should evolve towards a highly capitalised, medium/large-sized waste separation system with a long-term view. At the same time, the landfill-based waste disposal model should develop into a recovery model. In order for this to happen the extension of collection areas should be increased. If these policies are introduced promptly, the system may gradually evolve towards higher environmental standards and lower management costs.

Section snippets

Topic framework and research hypothesis

Western governments often link competitiveness in public-service management to the opening-up of markets and privatisation. Actually, if we analyse what international literature has to say, as well as the results of some empirical studies, the problem seems to be more complex; so much so that at the present time it is almost impossible to take the side of supporters of market supremacy, or conversely those who hold faith in various forms of State intervention. In reality there appear to be more

Background theories

The first works on waste cost go back to the end of the 70s. At that time waste management was still seen in terms of collection and disposal in a landfill. From then on, studies began to examine the relationship between costs and certain variables, especially market types and size of catchment area.

Savas (1977) was the first to reveal a correlation between collection costs and population size. In order to exploit economies of scale, he considered 50,000 inhabitants to be the optimal number. In

Empirical study

This section compares the potential determinants of costs of waste management and includes facts and figures for each one. In particular, Section 3.1 analyses the relevance of technology in determining waste management costs; Section 3.2 focuses on population related issues (population density and area extension) as potential explanatory factors. Finally, Section 3.3 considers service delivery arrangements as a cost determinant.

There is evidence to show that costs are mainly determined by

Conclusion

The results of this study would appear to confirm that there is a clear correlation between waste management technique and overall financial-environmental performance. Generally speaking, the choice should fall on the more “industrial” and integrated systems, based on large-capacity recovery plants dedicated to separated waste. On the contrary, systems in which a number of waste firms continue to exploit the “collection-landfill” model need to be phased out.

On the other hand, no correlation was

Alessandro Lombrano obtained a PhD in “Business Economics and Management” at the Bocconi University in Milan, Italy. He is currently a senior researcher in business economics at the University of Udine, Italy and lectures in “Planning and Control in Public Administration”. He is carrying out pure and applied research on public-sector governance, especially performance measurement and control systems and public services’ arrangement. Between 1998 and 2002 was general manager at the Municipality

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    Alessandro Lombrano obtained a PhD in “Business Economics and Management” at the Bocconi University in Milan, Italy. He is currently a senior researcher in business economics at the University of Udine, Italy and lectures in “Planning and Control in Public Administration”. He is carrying out pure and applied research on public-sector governance, especially performance measurement and control systems and public services’ arrangement. Between 1998 and 2002 was general manager at the Municipality of Carrara, Italy.

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