Spatial cost efficiency in waste paper handling: the case of corrugated board in Sweden

This paper analyzes the spatial cost efficiency of the Swedish legislation regarding waste disposal handling. We focus on the case of corrugated board and recognize that the different counties in Sweden possess different economic prerequisites in terms of waste paper recovery and utilization potential. We employ data for six corrugated board mills and 20 counties and a non-linear programming model to identify the least cost strategy for reaching the politically specified recycling target of a 65% recovery rate for corrugated board. That is, the total costs of recovering a minimum of 65% in each county are calculated and compared with the case when the country as a whole recovers 65% of all old corrugated board is collected but there exist no uniform target for each county. The conclusion is that from an efficiency point of view the recovery efforts should be concentrated to the highly populated and urbanized counties, and not be uniformly divided throughout the country. In the base case, the results suggest that the cost efficient county-specific recovery rates should range from 51 to 72%.