Cost savings of contracting out refuse collection in The Netherlands

E. Dijkgraaf*, R. H.J.M. Gradus

*Corresponding author for this work

Research output: Chapter/Conference proceedingChapterAcademic

3 Citations (Scopus)


This chapter discusses the possible cost savings of contracting out refuse collection in the Netherlands. Our findings indicate that similar to foreign econometric studies cost savings of approximately 15-20% apply to the Netherlands. Moreover, compared with the existing literature we show that different production technologies apply to internal municipal waste collection units and external refuse collection firms. Different cost functions have to be estimated for the sub-samples. Though significant cost savings exist on contracting out waste collection, households will not experience these cost savings on a one to one basis. Private refuse collection firms must pay VAT while public entities are exempted. Thus, the fiscal system hinders a more pronounced role for private refuse collection firms.

Original languageEnglish
Title of host publicationThe Waste Market
Subtitle of host publicationInstitutional Developments in Europe
PublisherSpringer Netherlands
Number of pages13
ISBN (Print)9781402087103
Publication statusPublished - 2008


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