Panel Paper: Political Explanations for Increasing Dutch Re-Municipalisation

Thursday, November 3, 2016 : 3:20 PM
Holmead East (Washington Hilton)

*Names in bold indicate Presenter

Raymond H.J.M. Gradus, Vrije Universiteit


This paper analyses shifts in the delivery mode of waste collection in Dutch municipalities. In approximately half of these entities, the mode of production was stable between 1999 and 2014. In the other half, shifts took place, with sixty percent towards outside production and forty percent towards inside production. In recent years, the number of shifts dropped remarkably and re-municipalisation has become more important. In addition, the number of reverse privatization is larger than the number of privatization. Based on a regression model and a dataset for all Dutch municipalities between 1999 and 2014, we find some evidence of an ideological motivation for changing the mode of production. Conservative liberals are in favor of change, particularly towards the market and privatization, whereas social democrats are against change. Furthermore, as on daily basis Dutch aldermen form the executive board of a municipality, we include the share of aldermen and their political affiliation as an explanatory variable as well. Conservative aldermen are in favor of change to the market and are against change from the market and reverse privatization. Social democrat aldermen are against change (in general) and privatization. In addition, we also found evidence for interest group effects as in most estimations, especially to market or to privatize, municipalities with a high level of unemployment are less willing to change.

Abstract: (re)municipalisation, local government, waste collection, empirical ideological motivation

JEL codes: H25, H32, L33