Efficient scale and scope of business models used in municipal solid waste management

Abstract

Purpose – The paper aims to compare the efficiency of alternative municipal solid waste (MSW) management business models: a single provider against multiple providers. Design/methodology/approach – In this paper the drivers of MSW management costs are analysed to test the impact of the scale and scope of MSW management services on the average cost. While the business-as-usual scenario foresees a single provider, the alternative scenario foresees multiple providers. Findings – Based on the empirical data on municipal waste management costs, on average, the size and the average cost of the service are inversely related. This trend is supported using sub-sets defined by the quantity of waste managed. Multiple factors aid in explaining this result, and among others, due to scale and scope, factors such as transition costs increase with the number of players running different services. Practical implications – The provision of public services of economic interest should favour the participation of more companies wherever possible to the extent that social surplus is produced. However, pursuing this principle to the detriment of efficient service delivery is not ideal. This paper demonstrated that a single-provider waste management business model is efficient under specific conditions, as in this article. Originality/value – This paper presents an original research methodology for comparatively analysing waste management service efficiency in urban areas and provides adequate evidence using alternative measures of costs according to the phase of the waste management chain, the scale and ultimately the scope of MSW management services. 研究目的 – 本學術論文擬比較另類的都市固體廢物管理模式的效率, 比較的對像是:單一服務提供者和多個提供服務者。 研究設計/方法/理念 – 研究人員分析都市固體廢物管理成本和價格的動因, 以測試有關的管理服務之規模和範圍對平均成本的影響。若在一切照常的情況下, 我們會預見單一服務提供者, 唯在不尋常的情況下, 我們則會預見多個提供服務者。 研究結果 – 根據都市廢物管理價格和成本上的實證數據, 平均而言, 服務的規模與其平均成本是成反比的。我們使用了以所處理之廢物量來界定的子集來支持這趨勢。多重因素會幫助解釋和說明這研究結果, 其中包括:因規模和範圍的關係, 諸如過度成本等的因素, 會按著提供各種不同服務的主要參與者的數目而增加。 實務方面的啟示 – 在能達創造社會剩餘的前題下, 會帶來經濟效益之公共服務的提供, 應有利於在可行範圍內有更多公司的參與; 但如果實行這原則而因此有損於服務提供的效率的話, 則這是不理想的。本文展示了在特定的情況下, 單一服務提供者的廢物管理商業模式是高效率的, 本文已說明這些特定情況。 研究的原創性/價值 – 本文為以比較分析法去探討城市地區廢物管理服務的效率、提出了一個新穎的研究方法, 並根據廢物管理鏈的階段、都市固體廢物管理服務的規模、以及最終其範圍, 考慮了成本和價格的另類測量方法, 繼而提供充分的證據, 以支持這些測量方法。

Keywords

• Waste management
• Business model
• Economies of scale
• Public procurement
• Waste management chain
• Circular economy