Fragmentation Versus Consolidation: Investigating Efficiency and Equity in Solid Waste Collection at the City Level in the Cities of Colorado Springs, Denver, and Indianapolis

Abstract

Federalist systems of government are commonly characterized by multiple and overlapping governmental jurisdictions. 'New Urbanism' literature often argues that this arrangement is inefficient and favors a consolidated government model. By contrast 'Local Public Economy' literature favors the polycentric arrangements noting that multiple overlapping governmental jurisdictions instill competition, leading to more efficient programs. This paper explores the fragmentation versus consolidation debate from a public service industry perspective exploring the production of city-level solid waste (trash and recyclables) collection services in three cities. These solid waste collection services fall into one of three categories: a monocentric system- consolidated and no overlap (case study: Denver, CO), franchise zones - fragmentation but no overlap (case study: Indianapolis, IN), and a polycentric system - fragmentation and overlap (case study: Colorado Springs, CO). This paper explores if one form of these solid waste collection methods is more fiscally efficient (providing the most service at the lowest cost), environmentally efficient (providing the most service with the smallest environmental footprint), and/or equitable (fairness, impartiality, and equality in service production) than the other production models at the city level. The finding is that the cost-for-service falls within a similar range for the monocentric and the franchise zone models, but that the polycentric model ranges from 50% to 100% greater in cost than these other two production models making it the least fiscally efficient. Likewise the monocentric and franchise zone models are found to be more environmentally efficient than the polycentric model. In terms of equity there is no clear 'best method' with all models producing relatively equal levels of service both within-city and across cities. In addition to these findings, this paper makes two additional contributions to the 'New Urbanism' and the 'Local Public Economy' literatures: the addition of the franchise zone model and the addition of the environmental efficiency measure.