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Landfill Construction and Capacity Expansion

Listed author(s):
  • Andre, F.J.
  • Cerda, E.

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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File URL: https://pure.uvt.nl/portal/files/599225/115.pdf
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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
Handle: RePEc:tiu:tiucen:812d24f5-7962-4dac-989e-1c99c7285c4c
Contact details of provider: Web page: http://center.uvt.nl

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  1. 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.
  2. Hartwick, John M, 1978. "Exploitation of Many Deposits of an Exhaustible Resource," Econometrica, Econometric Society, vol. 46(1), pages 201-217, January.
  3. 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.
  4. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
  5. Stephen Nickell, 1977. "Uncertainty and Lags in the Investment Decisions of Firms," Review of Economic Studies, Oxford University Press, vol. 44(2), pages 249-263.
  6. Weitzman, Martin L., 1976. "The optimal development of resource pools," Journal of Economic Theory, Elsevier, vol. 12(3), pages 351-364, June.
  7. 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.
  8. 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.
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