What should be recycled: An integrated model for product recycling desirability

This research was focused on developing a new scientific approach for prioritising recycling of end-of-life products in a circular economy. To date, product complexity based on the mixture of materials has been used as a predictor of what gets recycled. While the separation of materials that make up a product has been modelled as a measure of product complexity, this does not taken into account the benefits and considerations in recycling products. In this paper, a new agenda and approach to prioritise the recycling of products was developed based on a recycling desirability index. The material mixing complexity measure was inverted into a simplicity index and then extended by modelling the security index for the mix of materials and the technological readiness level of recycling technologies. The extended model is proposed as an integrated measure of the desirability of recycling end-of-life products. From this analysis, an apparent recycling desirability boundary, enabling products to be prioritised for recycling, was developed. This model and analysis can be used as an information source in developing policies and product recycling priorities

Nonparametric Estimation of Risk-Neutral Densities

This chapter deals with nonparametric estimation of the risk neutral density. We present three different approaches which do not require parametric functional assumptions on the underlying asset price dynamics nor on the distributional form of the risk neutral density. The first estimator is a kernel smoother of the second derivative of call prices, while the second procedure applies kernel type smoothing in the implied volatility domain. In the conceptually different third approach we assume the existence of a stochastic discount factor (pricing kernel) which establishes the risk neutral density conditional on the physical measure of the underlying asset. Via direct series type estimation of the pricing kernel we can derive an estimate of the risk neutral density by solving a constrained optimization problem. The methods are compared using European call option prices. The focus of the presentation is on practical aspects such as appropriate choice of smoothing parameters in order to facilitate the application of the techniques