This paper examines the problem of creating public value for services that involve co-production – cooperation between government organizations and citizens. Expanding on a foundational work by M. Moore, published in 1995, we introduce a modification to the public value creation model to incorporate co-produced public services. Further, we apply this modification using the example of a separate waste collection service (SWC) – a service whose effective implementation critically depends on a tight partnership between government authorities and the population, ultimately aiming to improve environmental conditions and foster sustainable development of the area. Utilizing the collected information on 671 respondents, the developed model is estimated using the partial least squares structural equation modeling (PLS-SEM) approach. We demonstrate that there is a set of factors that, in their interconnection, statistically significantly increase the public value of SWC. These results shed light on most effective measures to enhance public participation in waste separation and thus help to prioritize government spending in this domain.