Port Econ J https://doi.org/10.1007/s10258-018-0146-4 ORIGINAL ARTICLE Anticipating the location of a waste collection point: an application based on Portugal 1 2 Vitor Miguel Ribeiro · Mario Pezzino Received: 21 September 2017 / Accepted: 29 May 2018 © ISEG 2018 Abstract We study the optimal location of a waste facility in a horizontally differen- tiated 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 cen- ter. 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 Electronic supplementary material The online version of this article
Portuguese Economic Journal – Springer Journals
Published: Jun 7, 2018
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