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An optimal strategy to control mining and recycling of non-renewable resources

Author

Listed:
  • Silvia Bertarelli

    (Department of Economics and Management, Università di Ferrara)

  • Chiara Lodi

    (Department of Economics, Society & Politics, Università di Urbino Carlo Bo)

  • Stefania Ragni

    (Department of Economics and Management, Università di Ferrara)

Abstract

The current debate on non-renewable resources has been increasingly recognizing their critical role over time, since natural reserves are dramatically decreasing. We aim at studying non-renewable resource management when extraction from natural reserves and recycling are considered, as well as the impact of technological progress on consumption and welfare in the short-run term. Mathematical modelling may provide significant help to policymakers in devising suitable strategies for social welfare optimization and environmental conservation. In this direction, we introduce an optimal control model for allocating labor between mining and recycling over a finite time horizon; specifically, we aim at optimally manage virgin resource depletion and waste accumulation. Actually, a suitable scrap value function is involved in the optimization process, in order to account for the issue of reducing waste accumulation and preserving natural stock in the forthcoming future. We analyze the problem and provide the necessary optimality conditions.

Suggested Citation

  • Silvia Bertarelli & Chiara Lodi & Stefania Ragni, 2022. "An optimal strategy to control mining and recycling of non-renewable resources," Working Papers 2202, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2022.
    • Handle: RePEc:urb:wpaper:22_02
    as

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    File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_22_02.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Non-renewable resource; Recycling; Optimal control; Waste disposal;
    All these keywords.

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