Solid Waste Facilities Privatization: Pros & Cons

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Table of Contents

Introduction
Advantages and disadvantages of privatization
Utility and cost
The factors impacting the communitys choice
Competitiveness
Conclusion
References

Introduction

The significant deterioration of the environment is one of the major concerns of the modern world. Such aspects as the blistering development of industry, growth of cities, and the increase in the number of people has given rise to several problems related to the negative effects of waste products. A number of scientists seek to determine the current state of the problem and find the most efficient solution.

In this regard, the question of solid waste management obtains the special significance as the tendency towards urbanization conditions the further increase of the amount of waste. The efficient solution to this problem could be taken as a guarantee of the further development of society and industry. Being responsible for the further evolution of a state, the government tries to create new tools and methods to improve the situation. Yet, there is also the tendency towards the privatization of solid waste management by private companies.

Advantages and disadvantages of privatization

The significance of the new practice is proved by some investigations devoted to the efficiency of the approach and the possible aftermath of the adherence to the given pattern. Zafra-Gomes et al. (2015) state that the given strategy could be taken as the ideal solution in terms of the financial crisis. Delving into the precise investigation of the question, they are sure that the transfer of the ownership of the government to private companies might have a great positive effect on solid waste management and contribute to the general improvement of the situation (Zafra-Gomes et al., 2015).

However, there are also opponents of the given strategy who tend to prove the idea that it might result in the deterioration of the waste management and loss of control over it. Besides, numerous studies show that the usage of private companies to monitor the situation and recycle waste could be less cost-based and might help to improve the situation in the sphere (Bel & Warner, 2008).

Utility and cost

Revolving around the advantages and disadvantages of privatization, it is vital to mention several important aspects. First, despite some benefits, it could not be taken as an ideal solution to the problem. Studies evidence that the service quality did not vary significantly after the privatization (NSWMA, n.d.), though there could be some slight improvements. Moreover, in case the choice of the company is determined by the community, the practice could be even less efficient (Zafra-Gomes et al., 2015). Yet, scientists are still sure that the analysis of the potential owner might help to achieve significant progress in the given sphere.

Another concern related to the privatization of solid waste management is related to the reduction of costs. Bel and Warner (2008) state that even though cost reduction is the key benefit claimed by privatization, there are still numerous factors that impact the financial side of the problem. Cost savings are not systematic in the sphere of solid waste management, but it is still possible to achieve a significant improvement. For this reason, the usage of the given practice could be accepted to save funds.

The factors impacting the communitys choice

One should also admit the great role community plays when it determines whether to privatize the solid waste management facility or keep it public. Zafra-Gomes et al. (2015) are sure that the strategy could even harm the public interest in case the factors impacting the efficiency of the new owner are not taken into account. Collection cost is one of the major concerns impacting the choice.

The fact is that any community is interested in the efficient and cost-saving solid waste management that will be able to improve the situation in the sphere. For this reason, the members of the community analyze the main aspects of the would-be owner of facilities and makes choice resting on the benefits provided by it. However, there are still numerous cases that evidence the lack of investigation of the terms of partnership which results in the deterioration of the situation.

Competitiveness

Finally, there is another positive effect of the usage of privatization in the sphere of solid waste management. Regarding some peculiarities of the modern market environment, the new entry into the market will obviously increase the level of rivalry and promote the development of competitive bidding market in communities. Several companies interested in the issue could try to win the rivalry and privatize the waste management facilities to obtain benefits. However, to attract the attention of customers, a company should suggest some obvious advantages. In its turn, it might result in a significant improvement of the general state of the issue.

Conclusion

In conclusion, the privatization of solid waste facilities could be taken as one of the major concerns of modern social services. Trying to find an efficient solution to the nagging problem, the government and communities involve numerous companies in the process. However, this ambivalent character of this strategy introduces the need for the further investigation of the given sphere to determine whether the privatization could be accepted as the ideal perspective for the whole sector.

References

Bel, G., & Warner, M. (2008). Does privatization of solid waste and water services reduce costs? A review of empirical studies. Resources, Conservation and Recycling, 52, 1337-1348. Web.

NSWMA. (n.d.). Privatization: saving money, maximizing efficiency & achieving other benefits in solid waste collection, disposal, recycling. Web.

Zafra-Gomez, J., Plata-Diaz, M., Perez-Lopez, G., & Lopez-Hernandez, A. (2015). Privatisation of waste collection services in response to fiscal stress in times of crisis. Urban Studies, n. pag. Web.

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