Outsourcing through intermunicipal co-operation: Waste collection and treatment services in Brazil

Abstract

An important empirical question centres on whether intermunicipal co-operation between local governments can reduce service provision costs and increase revenue. This paper reports on an investigation into the impact of intermunicipal co-operation on waste collection and treatment in the institutional context of southeast Brazilian local government. Intermunicipal co-operation resulted in local governments improving their negotiation and monitoring skills, increasing their revenue-generating service area and enhancing their financial sustainability.