Does public-service performance depend on privatisation policy? In the case of urban hygiene it would appear that firm dimension and inter-firm relationships, alternative technologies and landfill capacity are more important. This study focuses specifically on the Italian case and belongs to a series of comparative international studies. The general aim of the paper is to provide public-sector administrators with clear guidelines. Waste collection should evolve towards a highly capitalised, medium/large-sized waste separation system with a long-term view. At the same time. the landfill-based waste disposal model should develop into a recovery model. In order for this to happen the extension of collection areas should be increased. If these policies are introduced promptly, the system may gradually evolve towards higher environmental standards and lower management costs
