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Landfill Construction and Capacity Expansion

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Author Info

  • Andre, F.J.
  • Cerda, E.

    (Tilburg University, Center for Economic Research)

Abstract

We study the optimal capacity and lifetime of landfills taking into account their sequential nature.Such an optimal capacity is characterized by the so-called Optimal Capacity Condition.Particular versions of this condition are obtained for two alternative settings: first, if all the landfills are to have the same capacity, and second, if each of them is allowed to have a different capacity.In the second case we obtain an Optimal Control problem, with mixed elements of both continuous and discrete time.The resulting optimization problems involve dividing a time horizon of planning into several subintervals of endogenously decided length.The results obtained may be useful to address other economic problems such as private and public investments, consumption decisions on durable goods, etc.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-115.

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Date of creation: 2003
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Handle: RePEc:dgr:kubcen:2003115

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Web page: http://center.uvt.nl

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Keywords: investements; resources; capacity; costs;

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  1. Hartwick, John M. & Kemp, Murray C. & Van Long, Ngo, 1986. "Set-up costs and theory of exhaustible resources," Journal of Environmental Economics and Management, Elsevier, vol. 13(3), pages 212-224, September.
  2. John Hartwick, 1975. "Exploitation of Many Deposits of an Exhaustible Resource," Working Papers 182, Queen's University, Department of Economics.
  3. Weitzman, Martin L., 1976. "The optimal development of resource pools," Journal of Economic Theory, Elsevier, vol. 12(3), pages 351-364, June.
  4. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
  5. Nickell, Stephen J, 1977. "Uncertainty and Lags in the Investment Decisions of Firms," Review of Economic Studies, Wiley Blackwell, vol. 44(2), pages 249-63, June.
  6. David N. Beede & David E. Bloom, 1995. "Economics of the Generation and Management of Municipal Solid Waste," NBER Working Papers 5116, National Bureau of Economic Research, Inc.
  7. Gerard Gaudet & Michel Moreaux & Stephen W. Salant, 2001. "Intertemporal Depletion of Resource Sites by Spatially Distributed Users," American Economic Review, American Economic Association, vol. 91(4), pages 1149-1159, September.
  8. Ready Mark J. & Ready Richard C., 1995. "Optimal Pricing of Depletable, Replaceable Resources: The Case of Landfill Tipping Fees," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 307-323, May.
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Cited by:
  1. Francisco J. André & Francisco Velasco & Luis González, 2004. "Intertemporal and Spatial Location of Disposal Facilities," Economic Working Papers at Centro de Estudios Andaluces E2004/74, Centro de Estudios Andaluces.
  2. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.
  3. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2010. "Waste Generation and Landfill Diversion Dynamics: Decentralised Management and Spatial Effects," Working Papers 2010.27, Fondazione Eni Enrico Mattei.
  4. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2011. "Embedding landfill diversion in economic, geographical and policy settings," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3299-3311.

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