Estimation of a function for the production of compost: the european case

Abstract: This paper aims to estimate a compost production function for 31 countries in Europe using the data panel methodology. The motivation of the document was based on the lag that exists in the economic literature, on issues related to the treatment of solid waste and its possible reintegration into the market. It was found that the production function that best fits is translogarithmic. When calculating Allen's elasticities of substitution, it was found that capital is complementary to the other factors of production, represented by the rate of installation of new treatment plants,. The opposite occurred with the work and the municipal waste generated, being substitutes for the group of countries analyzed.