Effects of Scale and Market Structure on the Costs of Residential Solid Waste Collection in Canadian Cities

The effects of scale of operation and market structure upon the unit costs of residential solid waste collection are simultaneously estimated for a sample of 100 Canadian cities. The findings point to substantial unit cost differences between public and private (contract) producers of solid waste collection. Private producers are 28% less expensive than their public counterparts. Scale economies were found for the producers in the sample. This finding is generally consistent with research published on American cities, but contradicts earlier research in Canada reported by Kitchen (1976). Important differences in costs attributable to service levels were also discovered. Frequency of collection was a key predictor of costs. Changing the frequency of collection from once per week to once every two weeks reduced unit costs by 34%.