What is it about?

In our analysis of the waste management service's business model, we sought to challenge the common notion that larger services inevitably result in increased costs for citizens. Contrary to popular belief, our findings demonstrated that a bigger waste management service can actually bring about cost advantages. By leveraging economies of scale, larger services can optimize their operations, streamline processes, and negotiate better deals for waste disposal and recycling. These efficiencies ultimately translate into lower costs for citizens, making waste management services more affordable and accessible. Our research challenges the prevailing perception and highlights the potential benefits of scaling up waste management services for both the environment and the community.

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Why is it important?

We suggests that a single operator can outperform multiple operators in certain cases, depending on the city. This is primarily due to the concept of economies of specialization and scope. A single operator can focus on developing expertise in waste management practices, investing in specialized equipment, and implementing efficient processes across the entire system. A single operator can achieve economies of scope by coordinating different aspects of waste management, such as collection, sorting, and disposal, leading to increased efficiency and reduced costs.


Ad hoc analysis is essential for analyzing waste management businesses in cities since typical economic scale analyses often fall short due to the unique complexities and variables involved in this sector

Giacomo Di Foggia
Universita degli Studi di Milano-Bicocca

Read the Original

This page is a summary of: Efficient scale and scope of business models used in municipal solid waste management, European Journal of Management and Business Economics, April 2023, Emerald,
DOI: 10.1108/ejmbe-09-2022-0271.
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