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Quality splitting in waste incineration due to non-convex production possibilities

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Using a real case study of waste incineration, we show a new form of non-convexity in the transformation process of the inputs into the outputs. Its consequence is quality splitting,… Click to show full abstract

Using a real case study of waste incineration, we show a new form of non-convexity in the transformation process of the inputs into the outputs. Its consequence is quality splitting, i.e. the separate use of different input qualities, yielding a better result than a homogeneous mix. For waste incineration plants (WIP), this leads to surprising practical implications for strategies of waste collection and supply, as well as for the control of a WIP. The insights are based on the evaluation of a basic model of waste incineration developed for the case study. Thus, the paper also contributes to production research by modelling waste incineration as a central process for the “reduction” of waste from manufacturing and consumption.

Keywords: production; waste; waste incineration; quality splitting

Journal Title: Journal of Business Economics
Year Published: 2017

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