This paper presents two optimization models for hazardous waste capacity planning and treatment facility locations. The complex behavior of firms in the presence of central planning decisions and price signals is investigated and it is shown that such behavior can best be captured by a hierarchical model. In particular, a central planning model, where the government is assumed to control all location/allocation decisions and a bilevel model, where the government is the leader with the goal of maximizing the social welfare via taxation is presented. Detailed formulations of both models are developed, solved, and the computational results are presented.
This report is part of the RAND Corporation External publication series. Many RAND studies are published in peer-reviewed scholarly journals, as chapters in commercial books, or as documents published by other organizations.
Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/research-integrity.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.