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The effects of market concentration on costs of local public services

Empirical evidence from Dutch waste collection

Bibliographic Data

ID6301786
AuthorsR H J M Gradus (0000-0002-4519-4633, Vrije Universiteit Amsterdam, corresponding author), Martijn Schoute (0000-0003-1799-4761, Vrije Universiteit Amsterdam), Elbert Dijkgraaf (0000-0003-3568-1558, Erasmus University Rotterdam)
Year2018
Volume44
Issue1
Pages86-104
Publication date2018-01-02
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueLocal Government Studies (JOURNAL)
Journal identifiersISSN: 0300-3930 • E-ISSN: 1743-9388
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/03003930.2017.1380629
OpenAlexW2758936924
LanguageEN
Citations received1
References cited19

Different concentration indexes are calculated for the Dutch waste collection market and all show that this market was highly concentrated in 2002, 2006, 2010 and 2014. The estimation results in 2002 show that private collection is cheaper but high concentration increases costs of private collection and therefore (partly) offsets the advantage of contracting out. In 2006, the savings gained from privatisation and also the effect of concentration disappear, probably due to the introduction of a VAT-compensation fund. In 2010, for an area with a radius of 30 km, high concentration increases costs, but for larger areas, this effect mostly disappears. For 2014, in most estimations, this concentration effect disappears. If we include fixed effects for a panel, the cost advantage of inter-municipal cooperation is larger than that of private production and concentration effects also disappear. Overall, these estimation results are rather independent of the concentration indexes used, if we investigate several indexes as an alternative for the Herfindahl–Hirschman index

Business · Econometrics · Economics · Estimation · Herfindahl index · Index (typography · Market concentration · Market structure · Microeconomics · Monetary economics · Municipal solid waste · Panel data · Waste collection · Fiscal Policy and Economic Growth · Public Procurement and Policy · Public-Private Partnership Projects

  • Privatisation, contracting-out and inter-municipal cooperation

    Open Access•Germà Bel, R H J M Gradus•Local Government Studies•2018

  • Do Public Sector Reforms Get Rusty? Local Privatization in Spain

    Germà Bel, Antón Costas•The Journal of Policy Reform•2006

  • Contracting out by the public sector

    Simon Domberger•Oxford Review of Economic Policy•1997

  • A Cost-effectiveness Analysis for Incineration or Recycling of Dutch Household Plastic Waste

    Open Access•R H J M Gradus, Paul Nillesen et al.•Ecological Economics•2017

  • Collusion in the Dutch waste collection market

    Elbert Dijkgraaf, R H J M Gradus•Local Government Studies•2007

  • Contracting Out

    M C Wassenaar, Mattheus Wassenaar et al.•Local Government Studies•2010

  • Is there still collusion in the Dutch waste collection market

    Open Access•R H J M Gradus, Elbert Dijkgraaf et al.•Local Government Studies•2016

Unique citing works1
Citations per year0.13
Citation span2018 - 2018 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1

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Open DOISci-HubOpen Access
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