Performance and its determinants in the Portuguese municipal solid waste utilities

Area of Science:

• Environmental Science and Policy
• Public Administration
• Operations Research

Background:

• Global population increase drives urbanization and municipal solid waste (MSW) production, projected to reach 3.4 billion tons annually by 2050.
• Efficient management of MSW utilities is crucial for environmental sustainability and economic viability.

Purpose of the Study:

• To measure the efficiency of MSW collection utilities in Portuguese municipalities.
• To identify factors influencing MSW utility efficiency, including performance indicators and council characteristics.

Main Methods:

• Data Envelopment Analysis (DEA) was employed to assess MSW collection efficiency, using costs, staff, and vehicles as inputs, and waste collected as output.
• The order-m model was utilized to evaluate the relationship between fifteen regulatory performance indicators and utility efficiency.

Main Results:

• An average inefficiency of 35% was found in MSW collection, indicating potential annual cost savings exceeding €96 million.
• The rural/urban nature of municipalities, rather than solely management models, significantly explains part of the observed inefficiency.
• Key performance indicators like service accessibility, recycling rate, fleet monetization, and greenhouse gas emissions from collection vehicles were influential.

Conclusions:

• Portuguese MSW utilities exhibit substantial room for efficiency improvements and cost reduction.
• Performance indicators and contextual factors (e.g., rural/urban setting) are critical for understanding and improving MSW management efficiency.
• Future performance analyses should incorporate these identified indicators and factors to better benchmark and guide MSW utility operations.