Landfilling, Set-Up Costs and Optimal Capacity

Francisco André and Emilio Cerdá

No E2002/05, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: We study the optimal capacity 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 optimitization problems involve dividing a time horizon of planning into several subintervals of endogenously decided capacity. The results obtained may be useful to address other economic problems such as private and public investments, consumption decisions on durable goods, etc.

Keywords: Landfills; Set-Up costs; Optimization; Optimal Control. (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2002
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