Year: 2025
Type: article
Abstract: Driven by the path of ecological transition, municipal solid waste management is now more than ever at the center of debates on the most efficient delivery methods. Although competition policy advocates subdivision into lots to facilitate medium-sized enterprise participation, in some cases-notably when substantial investments are required to achieve circular economy and sustainable development goals-a single-operator model may prove more efficient. Using a mixed research approach that integrates empirical evidence and market analysis, this study examines the relevance of cost curves, transaction costs, and market structure in determining the optimal service delivery model. The findings indicate that for large cities, consolidating MSW management services under a single contract yields significant cost advantages due to economies of scale and scope and is better suited to supporting the investments necessary for circular economy objectives. Practical implications for local policymakers highlight the need to assess utility sector policies carefully. Decisions at the local level should account for the interplay between the economic environment and the role of industrialization and economies of scale in fostering sustainable development. We suggest policymakers design policies that balance market efficiency with equitable access to services while also considering the scale of service provision, as it influences sustainability and economic resilience.
Source: Urban Science
Institution: University of Milano-Bicocca
Language: English
Subfield: Waste Management and Disposal
Field: Environmental Science
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $1,930
OpenAlex ID: W4409894643