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Waste management alternatives: (Dis)economies of scale in recovery and decoupling

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  • Swart, Julia
  • Groot, Loek

Abstract

This paper formulates a theoretical model which allows different waste management strategies in equilibrium, depending on the technology of waste recovery and the utility functional specification. In the model there are two waste treatment alternatives: ‘not-recovered waste’, composed of landfill and incineration without recovery and ‘recovered waste’, which is the aggregate of recycling, composting and incineration with recovery. We show that if recovery activities present constant or economies of scale then it is optimal to have zero not-recovered waste. The presence of diseconomies of scale in recovery of waste can either result in an equilibrium with zero or positive not-recovered waste, but recovery of waste is necessarily positive. We test for the presence of an EKC, and find that it is only compatible in our model when we assume decreasing marginal utility of consumption, and diseconomies of scale are limited. However, in the presence of (constant) economies of scale in recovery, we observe complete decoupling.

Suggested Citation

  • Swart, Julia & Groot, Loek, 2015. "Waste management alternatives: (Dis)economies of scale in recovery and decoupling," Resources, Conservation & Recycling, Elsevier, vol. 94(C), pages 43-55.
  • Handle: RePEc:eee:recore:v:94:y:2015:i:c:p:43-55
    DOI: 10.1016/j.resconrec.2014.11.005
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    4. Massimiliano Mazzanti & Anna Montini & Roberto Zoboli, 2007. "Economic Dynamics, Emission Trends and the EKC Hypothesis New Evidence Using NAMEA and Provincial Panel Data for Italy," Working Papers 2007.24, Fondazione Eni Enrico Mattei.
    5. Kinnaman, Thomas C. & Shinkuma, Takayoshi & Yamamoto, Masashi, 2014. "The socially optimal recycling rate: Evidence from Japan," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 54-70.
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    8. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.
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    2. Di Foggia, Giacomo & Beccarello, Massimo, 2023. "Designing circular economy-compliant municipal solid waste management charging schemes," Utilities Policy, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Waste disposal; Recycling; Landfill; Decoupling; Environmental Kuznets Curve; Economies of scale;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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