Recycling and Landfilling in a Dynamic Sraffian Model: Application of the Corn-guano Model to a Waste Treatment problem
Author: Hosoda, Eiji
Source: Metroeconomica, Volume 52, Number 3, August 2001 , pp. 268-281(14)
Abstract:Landfill sites may be regarded as input for a waste treatment process. Considering landfill as an exhaustible resource, we apply a basic corn-guano model to a waste treatment problem. We show how dynamic substitution between landfilling and recycling occurs. Namely, in an early stage, landfill disposal is adopted as waste treatment and a recycling process is not activated. Once an economy faces exhaustion of landfill, a recycling process is activated as a backstop technology. We refer to the possibility that an economy may be unstable after exhaustion of landfill, even if it enjoys stable growth at the early stage.
Document Type: Original article
Publication date: 2001-08-01