The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Carlo Carraro and Vito Fragnelli
Chapter 6: A Model for Cooperative Inter-Municipal Waste Collection: Cost Evaluation Toward Fair Cost Allocation
6. A model for cooperative intermunicipal waste collection: cost evaluation toward fair cost allocation1 Stefano Moretti 1. INTRODUCTION Some countries in the EU have a very large number of small municipalities with individual responsibility for managing municipal waste. These are frequently too small to be able to develop a waste management system (wms) that meets the high standards demanded by EU legislation at an aﬀordable cost. In this case, as the Handbook on the Implementation of EC Environmental Legislation (European Commission, 2000) suggests, inter-municipal cooperation can be very beneﬁcial in achieving groupings that are large enough to make the wms aﬀordable. Indeed, due to economies of scale, imposed by the need for specialist staﬀ and facilities (Tickner and McDavid, 1986; Antonioli et al., 2000), the size of inter-municipal areas tends to expand (European Commission, 2000). From this follows the usefulness of a tool capable of eﬃciently reorganizing the wms as the intermunicipal area where the service has to be supplied is in the process of enlargement. On the other hand, eﬃciency cannot be the sole criterion which has to be considered in order to make decisions on this topic. In fact the overall supply cost must still be met by single municipalities, which are not interested in paying more than the amount they would have paid if they had been organized in diﬀerent groupings. Roughly speaking, the overall cost must be shared among municipalities in a fair way in order to foster cooperation among...
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