Political and Institutional Explanations for Increasing Re-municipalization

This article analyzes shifts in the delivery mode of waste collection in Dutch municipalities between 1999 and 2014. In approximately half of these entities, shifts took place, with 60% toward outside production and 40% toward inside production. In recent years, the number of shifts dropped remarkably, and re-municipalization has become more important. In addition, the amount of municipalities with reverse privatization is larger than that of privatization. Based on a logit model, some evidence of an ideological motivation for changing the mode of production is found. Conservative liberals are in favor of changing, particularly toward the market and privatization, whereas social democrats, in particular, are against change. These results provide some evidence for the unemployment or scale argument for changing the mode as well. In addition, there is an indication that political fragmentation increases the ability to privatize.