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Intertemporal and Spatial Depletion of Landfills

Author

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  • Gaudet, G.
  • Moreaux, M.
  • Salant, S.W.

Abstract

This paper generalizes Hotellings (1931) theory of nonrenewable resources to situations where resource pools and their users are distributed spatially. Extraction and transport costs are assumed to be linear in the rate of extraction, but utilization of each deposit may require a setup cost. While Herndahls (1967) analysis of the socially optimal utilization of multi- ple deposits by a single user can be given a spatial reinterpretation, our contribution is to generalize his results further to the case where there are multiple users who are themselves spatially distributed. While our spatial generalization is important in many resource ap- plications, it is essential to an understanding of solid waste problems. Landll space may be regarded as a depletable resource, since space extracted today is unavailable tomorrow. But since cities and landlls are dispersed geographically, transshipment ofwaste commonly occurs within and between countries. Our analysis characterizes socially optimal waste ows over time and space and will facilitate the evaluation of the many government interventions designed to regulate such shipments of solid waste.

Suggested Citation

  • Gaudet, G. & Moreaux, M. & Salant, S.W., 1997. "Intertemporal and Spatial Depletion of Landfills," Papers 97-07, Michigan - Center for Research on Economic & Social Theory.
  • Handle: RePEc:fth:michet:97-07
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    References listed on IDEAS

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    2. Poyago-Theotoky, Joanna, 1995. "Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 209-226, June.
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    Cited by:

    1. Zhao, Xiaobing & Fletcher, Jerald J., 2004. "An Optimal Control Approach To Water Quality Trading: Cost-Effective Point/Nonpoint Management In A Watershed Framework," 2004 Annual meeting, August 1-4, Denver, CO 20195, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Francisco André & Francisco Velasco & Luis Gonzalez-Abril, 2009. "Intertemporal and spatial location of disposal facilities," Spanish Economic Review, Springer;Spanish Economic Association, pages 23-49.
    3. Francisco J. André & Emilio Cerdá, 2005. "Gestión de residuos sólidos urbanos: Análisis económico y políticas públicas," Economic Working Papers at Centro de Estudios Andaluces E2005/23, Centro de Estudios Andaluces.

    More about this item

    Keywords

    NATURAL RESOURCES ; ECONOMIC MODELS ; COSTS ; EXTRACTION;

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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