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Optimal Investment Policies for Pollution Control in the Copper Industry

Author

Listed:
  • Susana V. Mondschein

    (Department of Industrial Engineering, University of Chile, PO Box 2777, Santiago, Chile)

  • Ariel Schilkrut

    (Department of Industrial Engineering, University of Chile, PO Box 2777, Santiago, Chile)

Abstract

We developed a decision-support system for investment projects in pollution abatement plants at state-owned copper smelters in Chile. We formulated a mixed-integer linear model to determine the optimal investment policy for this interrelated production-environmental problem. Because of the significant differences between the model's solutions and the initial clean-up plans the smelters submitted to the environmental authorities, the government has revised the smelters' clean-up plans, initially working to obtain more complete and reliable information. Furthermore, it has put some of the projects presented in the original clean-up plans on hold until it has a refined version of the model. The Chilean budget director has approved other clean-up plans because, as the director of policy planning at Cochilco said, they are consistent with the model's recommendations.

Suggested Citation

  • Susana V. Mondschein & Ariel Schilkrut, 1997. "Optimal Investment Policies for Pollution Control in the Copper Industry," Interfaces, INFORMS, vol. 27(6), pages 69-87, December.
    • Handle: RePEc:inm:orinte:v:27:y:1997:i:6:p:69-87
    DOI: 10.1287/inte.27.6.69
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    Cited by:

    1. Jianzhong Xiao & Xiaolin Wang & Ran Wang, 2016. "Research on Factors Affecting the Optimal Exploitation of Natural Gas Resources in China," Sustainability, MDPI, vol. 8(5), pages 1-13, May.
    2. Abdelkader Sbihi & Richard Eglese, 2010. "Combinatorial optimization and Green Logistics," Annals of Operations Research, Springer, vol. 175(1), pages 159-175, March.
    3. Foo, Nam & Bloch, Harry & Salim, Ruhul, 2018. "The optimisation rule for investment in mining projects," Resources Policy, Elsevier, vol. 55(C), pages 123-132.
    4. Fenfen Shi & Rijia Ding & Heqing Li & Suli Hao, 2022. "Environmental Regulation, Digital Financial Inclusion, and Environmental Pollution: An Empirical Study Based on the Spatial Spillover Effect and Panel Threshold Effect," Sustainability, MDPI, vol. 14(11), pages 1-28, June.
    5. René Caldentey & Susana Mondschein, 2003. "Policy Model for Pollution Control in the Copper Industry, Including a Model for the Sulfuric Acid Market," Operations Research, INFORMS, vol. 51(1), pages 1-16, February.
    6. Chunguang Bai & Joseph Sarkis, 2013. "Green information technology strategic justification and evaluation," Information Systems Frontiers, Springer, vol. 15(5), pages 831-847, November.

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