Abstract
This paper proposes a method of utilizing auction data toward recycling-oriented regional planning and examines an efficient resource allocation to maximize Japanese municipalities' revenues from wasted bottle recycling auctions. First, we developed models to explain observed winning bids by using multiple linear regression models and found that the distances between recycling firms and the municipalities have negative impact on the winning bids. Second, we estimated potential winning bids by using the developed model in each year and formulate an optimal resource allocation problem. We derived efficient allocations by using the estimated potential winning bids and found that optimal allocations improve the municipalities' revenues, especially in Kanto region. We also found that the combination in the optimal allocation distribute in smaller area compared to the observed combination.
