The Economies of Scale Context

55. One reason that solid waste management is viewed as a possible arena for private sector participation is that the economies of scale are not pronounced. This is in contrast to the case of water, electricity, and telecommunications that have such significant economies of scale that they are often regarded as natural monopolies (56). In solid waste management, there are economies of scale to a limited extent, as follows:

56. Based on studies of costs for refuse collection in the United States, no economies of scale are thought to exist for communities greater than 50,000 people (56). Only for transfer, disposal, and resource recovery systems are there economies of scale to handle more than 200 tonnes per day, or 150,000 residents based on the United States' higher waste generation rate.