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Anticipating the location of a waste collection point: an application based on Portugal

Vitor Miguel Ribeiro () and Mario Pezzino ()
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Vitor Miguel Ribeiro: University of Aveiro and Autoridade Nacional de Comunicações (ANACOM)

Portuguese Economic Journal, 2019, vol. 18, issue 2, No 2, 87-106

Abstract: Abstract We study the optimal location of a waste facility in a horizontally differentiated duopoly where firms choose their location and price. The policymaker decides the location of a waste facility targeting social welfare maximization. Consistent with the observation of the location decisions of waste facilities in Portugal, we show that the optimal location of a waste facility is never in the city center under partial ex-post regulation. Ex-ante regulation ensures the highest level of social welfare, but from a theoretical point of view, it requires a waste facility located in the city center. A robustness check is then provided to justify that, in actual regulatory practice, a first-mover regulator maximizes social welfare without necessarily imposing the installation of a waste facility in the city center.

Keywords: Waste management; Spatial competition; Location; Waste collection point; Price competition (search for similar items in EconPapers)
JEL-codes: D43 L13 Q53 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s10258-018-0146-4

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