OPTIMALITY OF RECYCLING AND THE LOCATION OF A RECYCLING CENTER

ABSTRACT. Consider a community investigating the integration of recycling into its waste management program. Even if (1) the county's citizens do not gain utility from recycling, (2) landfill space is plentiful, and (3) the market price for recyclables is zero, recycling can still be optimal for a local government. By determining the relationship between the amount of recycling and the location of a recycling center, conditions are identified under which recycling will reduce total waste management costs enough that municipal recycling will be optimal. In addition, it is shown that the likelihood of municipal recycling increases with the size of the city.