The economic efficiency of waste management companies: a study on the business models, processes and cost analysis in the circular economy.

In recent years, many Countries were forced to assess their solid waste management programs, with emphasis given to the need to improve efficiency and to control the costs of collecting, transporting and processing urban solid waste. Prior literature highlights that process efficiency and cost and management accounting have become a critical issue for every waste management company in several Countries. Prior research investigated from an engineering perspective and little research has been dedicated to accounting and management-related issues. We propose a more integrated study on management and accounting, whose literature still lacks. Another gap this project fills in, is the consideration of all the processes of the Municipal Solid Waste management (MSW) system, studying not only the collection process but also the transport, selection, treatment, recycling or reuse and disposal of waste. We adopt a constructive research methodology and using the Life Cycle Costing we assess the efficiency and economic viability of the waste treatment options. We will use various methods, including qualitative and quantitative research approaches. The main target is to evaluate the efficiency in MSW companies and to identify the best practices. The specific results to be achieved are: A) The identification of the best business models to achieve efficiency in waste management companies; B) The measurement of the costs of each processes of collection, selection, treatment, recycling, reuse and disposals of MSW (from the selection it should be considered also the transport costs); C) The cost-benefit analysis of separated waste management versus undifferentiated waste management; D) The analysis of the determinants of the waste treatment costs (geographic area, population, tourism). The project lasts 36 months, divided in 5 phases. In the first 6 months the two research units review the regulation and the literature. In the second phase they conduct the survey (12 months) and in the third they build the databases for the analysis (6 months). In the fourth phase the units make the statistical analysis and the case studies investigation. The results are presented to academic and public sector conferences (phase 5). This project provides a twofold contribution to the literature on waste management. Firstly, it studies the waste management companies under an accounting and management perspective, which is key to develop more efficient and effective business models. Secondly, unlike prior studies focusing on specific process, we investigate the entire processes involved in the waste management system from collection to disposal. The results are relevant at the national and international level. The findings can help in the creation of business models able to improve the efficiency of waste management companies. The findings can help the policy makers and local governments to develop regulation and prepare tender offer for the waste management services.