In this paper, we use stochastic dynamic programming to model the choice of a municipality which has to design an optimal waste management program under uncertainty about the price of recyclables in the secondary market. The municipality can, by undertaking an irreversible investment, adopt a flexible program which integrates the existing landfill strategy with recycling, keeping the option to switch back to landfilling, if profitable. We determine the optimal share of waste to be recycled and the optimal timing for the investment in such a flexible program. We find that adopting a flexible program rather than a non-flexible one, the municipality: (i) invests in recycling capacity under circumstances where it would not do so otherwise; (ii) invests earlier; and (iii) benefits from a higher expected net present value. © 2013 Elsevier B.V. All rights reserved.

Di Corato, L., Montinari, N. (2014). Flexible waste management under uncertainty. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 234(1), 174-185 [10.1016/j.ejor.2013.09.026].

Flexible waste management under uncertainty

MONTINARI, NATALIA
2014

Abstract

In this paper, we use stochastic dynamic programming to model the choice of a municipality which has to design an optimal waste management program under uncertainty about the price of recyclables in the secondary market. The municipality can, by undertaking an irreversible investment, adopt a flexible program which integrates the existing landfill strategy with recycling, keeping the option to switch back to landfilling, if profitable. We determine the optimal share of waste to be recycled and the optimal timing for the investment in such a flexible program. We find that adopting a flexible program rather than a non-flexible one, the municipality: (i) invests in recycling capacity under circumstances where it would not do so otherwise; (ii) invests earlier; and (iii) benefits from a higher expected net present value. © 2013 Elsevier B.V. All rights reserved.
2014
Di Corato, L., Montinari, N. (2014). Flexible waste management under uncertainty. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 234(1), 174-185 [10.1016/j.ejor.2013.09.026].
Di Corato, Luca; Montinari, Natalia
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/580802
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 14
  • ???jsp.display-item.citation.isi??? 14
social impact