The privatization effect of MSW incineration services by using data envelopment analysis

Area of Science:

• Environmental Engineering
• Operations Research
• Public Policy

Background:

• Municipal solid waste (MSW) incineration is a key waste management strategy.
• Understanding operational efficiency variations in incineration facilities is crucial for optimizing resource allocation and environmental impact.
• Different operating models (GOO, GOPO, POPO) may influence facility performance.

Purpose of the Study:

• To compare the relative technical efficiency of MSW incineration facilities across three distinct operating modes: government-owned government-operated (GOO), government-owned private-operated (GOPO), and private-owned private-operated (POPO).
• To identify factors influencing efficiency variations among these operating modes.
• To analyze the role of operating contracts in the performance of GOPO facilities.

Main Methods:

• Data Envelopment Analysis (DEA) was employed to measure and compare the technical efficiencies of the facilities.
• Analysis of Variance (ANOVA) was used to statistically assess the impact of operating mode on efficiency scores.
• Further qualitative analysis of operating contracts for GOPO facilities was conducted.

Main Results:

• Technical efficiency scores were found to be 0.7538 for GOO, 0.9046 for GOPO, and 0.9917 for POPO facilities.
• ANOVA confirmed that the operating mode has a statistically significant impact on technical efficiencies.
• For GOPO facilities, operating contract elements such as price and quantity protection were identified as significant factors influencing efficiency.

Conclusions:

• Private operation (POPO) demonstrates the highest technical efficiency in MSW incineration.
• The operating model is a critical determinant of incineration facility performance.
• Contractual terms in public-private partnerships (GOPO) significantly affect operational efficiency and warrant careful consideration.