Publication details

The Effect of Waste Management Company Change on Municipal Solid Waste Expenditures


STRUK Michal

Year of publication 2017
Type Appeared in Conference without Proceedings
MU Faculty or unit

Faculty of Economics and Administration

Description The debate about public vs. private provision of municipal solid waste management has been going on for already several decades with no clear evidence in favor of either. More important seems to be the presence of relevant competition on the market. In this study we extend this topic and use the empirical evidence to show that what matters the most is the willingness of the municipality to change the waste management company. We compare the municipal solid waste expenditure of more than 60 municipalities in Czechia that changed their waste management company in 2008-2014 before and after the change. The results show that such change can on average reduce the expenditure by several percent and should be preferred by the municipalities instead of perpetually extending contracts with the current provider. In addition we show that it does not matter much whether the new waste management company is public or private, as cost reductions are present if switching either way.
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