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Scientific Article details

Title Efficiency in waste management companies: A proposal to assess scale economies
ID_Doc 18894
Authors Bartolacci, F; Del Gobbo, R; Paolini, A; Soverchia, M
Title Efficiency in waste management companies: A proposal to assess scale economies
Year 2019
Published
DOI 10.1016/j.resconrec.2019.05.019
Abstract This article analyzes the economic efficiency of waste management companies with the aim of verifying the existence of scale economies with respect to separate waste collection preceding reuse, recycling, and recovery. For this purpose, an approach based on partial elasticity is used for a group of companies providing waste management services throughout Italy. Results show that the greater the separate waste collection rate, the higher the total costs incurred by the analyzed companies; this relationship is non-linear since a rise in the separate waste collection rate increases total costs less than proportionally, which gives evidence for the existence of scale economies. The findings also reveal that such a cost advantage is strengthened by a positive interaction effect with population density. These results show that a significant increase in separate waste collection rate could be realized in an efficient way and, thus, without jeopardizing companies' economic sustainability, which is essential to continue ensuring such important services for the community. One of the main implications of these results concerns policy makers: considering the population density impact, working in certain territories can be more economically convenient for companies; thus, policy makers should support those firms that could be penalized by the contextual conditions.
Author Keywords Efficiency; Elasticity coefficient; Scale economies; Interaction effect; Separate waste collection; Waste management companies
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:000472242800011
WoS Category Engineering, Environmental; Environmental Sciences
Research Area Engineering; Environmental Sciences & Ecology
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