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

  • Vitor Miguel Ribeiro
  • Mario Pezzino
Original Article

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 

JEL Classification

D43 L13 Q53 

Notes

Acknowledgements

This research started through a working paper entitled “Anticipating the Long-Term Ideology of a Policymaker”. The authors declare no conflict of interest and appreciate the valuable suggestions provided by two anonymous referees and Co-Editor Steffen Hoernig, which substantially improved the quality of the study.

Supplementary material

10258_2018_146_MOESM1_ESM.pdf (771 kb)
(PDF 770 KB).

References

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Copyright information

© ISEG 2018

Authors and Affiliations

  1. 1.Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT)University of Aveiro and Autoridade Nacional de Comunicações (ANACOM)AveiroPortugal
  2. 2.Department of Economics, School of Social SciencesUniversity of ManchesterManchesterUK

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