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Landfill Construction and Capacity Expansion

  • Francisco André
  • Emilio Cerdá

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. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000036781.00132.87
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 28 (2004)
Issue (Month): 4 (August)
Pages: 409-434

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Handle: RePEc:kap:enreec:v:28:y:2004:i:4:p:409-434
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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  1. Hartwick, John M, 1978. "Exploitation of Many Deposits of an Exhaustible Resource," Econometrica, Econometric Society, vol. 46(1), pages 201-17, January.
  2. M. L. Weitzman, 1975. "The Optimal Development of Resource Pools," Working papers 147, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. 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.
  4. John Hartwick & Murray Kemp & Ngo van Long, 1980. "Set-up Costs and Theory of Exhaustible Resources," Working Papers 412, Queen's University, Department of Economics.
  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. 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.
  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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