Efficiency Effects of Unit-based Pricing Systems and Institutional Choices of Waste Collection

Arbeitspapier

Much attention has been paid to the influence of the institutional form of waste collection on costs. We extend this literature in three directions by including the unit-based pricing system. First, we show that unit-based pricing systems are more important from a cost-minimizing point of view than the institutional mode of waste collection. In particular, the bag-based and frequency-based pricing systems are preferred. Second, dividing the cost effects between price and quantity effects, we illustrate that lower administrative costs and a smaller waste quantity are the most important drivers of cost decreases. It also shows that a disadvantage of the bag-based system is that it is not easy to price compostable waste. Third, if more general cost functions are analyzed, these estimations suggest that there are economies of scale for small municipalities.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 14-003/VI

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Household ; State and Local Taxation, Subsidies, and Revenue ; Nonrenewable Resources and Conservation: Government Policy
• Subject: waste collection ; cost functions ; efficiency ; unit-based pricing ; contracting out

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dijkgraaf, Elbert ; Gradus, Raymond
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/89257
• Last update: 10.03.2025, 11:44 AM CET