Waste services' performance assessment: The case of Tuscany, Italy

Abstract

This paper assesses the performance of waste services in the region of Tuscany in Italy. It adopts non-parametric techniques for this purpose. Furthermore, it investigates the influence of the operational environment on the estimated performance by using the robust order-m technique. Meaningful levels of inefficiency were found in the Italian waste services. A specification of the ownership of the operator entrusted with waste management by municipalities and the formal adoption of the zero-waste strategy are included as environmental variables.The study concludes that the influence of the operational environment is a determinant of performance. The income per capita is negatively associated with efficiency, while population density is positively associated. Furthermore, efficiency levels are lower for municipalities with higher mixed waste per capita produced. Improving good pro-environmental behaviours is likely to improve efficiency and, thus, tariffs. The empirical results support the idea that it is necessary to make relevant organizational decisions that imply higher costs to increase the refuse collection rate. An increase in the separate collection rate beyond 50% is associated with the reduction of the efficiency level reached. Efficiency analysis does not consider the additional costs and the opportunities for municipalities to get revenues by selling them as secondary raw materials. Besides, the adoption of a zero-waste strategy is related to higher efficiency in MSW service provision. Finally, results about the ownership issue support the idea that privatization is not necessarily associated with the performance improvement of the waste services.