For purposes of establishing a benchmark against which performance of municipal solid waste (MSW) collection systems can be evaluated by sector regulators, investors and managers, this study assessed the cost efficiency of MSW collection systems in Ghana, using stochastic frontier analysis
(SFA). Data from seventy municipal solid waste collection systems were used to estimate the parameters of a Cobb-Douglas cost function. The study developed a cost function, estimated the parameters using maximum likelihood, and applied SFA to determine the efficiencies. Four variables (quantity
of waste collected, distance travelled, fuel consumed and number of trips) which affect operating cost were used to estimate the efficiency. Results from the analysis showed that the cost efficiencies ranged from 59.82% to 93.23%, with a mean value of 84.16% and, that fuel consumed was the
significant cost driver at the 5% significant level. Efficiencies for Municipal Assemblies ranged from 71.80% to 90.77%, with a mean value of 84.26% while District Assemblies recorded 59.82% to 93.23%, with a mean value of 83.79%. There was no significant difference in the mean relative efficiency
estimates of the District and Municipal Assemblies. The findings establish a benchmark and methodology, essential for industrial players in performance evaluation. The study also serves as a resource material for further study in performance evaluation of solid waste collection systems, particularly
in developing economies.
