Unfair competition and its impact on the level of municipal expenditure on waste management

Abstract

The paper deals with the effect of competition on municipal public expenditure. The impact of competition on municipal waste management expenditure is ambiguous. The purpose of this paper is to analyse the nature of competition in the waste management market and its impact on municipal waste management expenditure in the four regions in the Czech Republic (1962 municipalities) in year 2014. In the past, between years 2008 and 2011, cartel of four companies was proven in the waste management market in the Czech Republic. We suppose that the existence of an unfair competition can lead to higher municipal waste management expenditure. The results confirm our assumption and show that impact of unfair competition is still visible after four years and it could have a notable impact on municipal waste management expenditure.