The Economic Organization of Refuse Collection

Abstract

Under the influence of two important developments–major deterioration of public refuse collection in some large cities and growth of a vigorous private solid waste management sector–important changes in the organization of urban refuse collection appear imminent. Since refuse collection has some economic characteristics of public utilities, and because it is a service bearing importantly on public health and safety, a regulated monopoly structure has been advocated for providing this service under private management. This paper analyzes several different modes of organizing refuse collection and concludes that a competitive economic framework is both feasible and desirable. The suggested competitive arrangement, involving direct competition for accounts in high-density areas and competition for contracts in low-density areas, provides for both private profit-making and public nonprofit participation.