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Hazardous waste transportation: a cost allocation analysis

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  • Kevin Techer

    (UJM - Université Jean Monnet - Saint-Étienne, GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies hazardous waste transportation problems. Due to their dangerous nature, the transportation of these waste implies a risk of incident having irreversible consequences on the environment. This problem has lead to a body of legal statutes that monitor the generation, storage and transportation of hazardous waste. Assuming that the transport of hazardous waste is done in a cooperative manner on a transport network, this paper investigates how to share the cost of maintaining and operating such network among the involved agents. We analyze the hazardous transportation problem from the viewpoint of axiomatic analysis. We consider several axioms that are derived from different environmental law principles and provide a characterization of a new allocation rule: the responsibility rule. Then we show that the responsibility rule coincides with the multi-choice Shapley value of an appropriate multi-choice game.

Suggested Citation

  • Kevin Techer, 2023. "Hazardous waste transportation: a cost allocation analysis," Working Papers hal-04099139, HAL.
    • Handle: RePEc:hal:wpaper:hal-04099139
    Note: View the original document on HAL open archive server: https://hal.science/hal-04099139v2
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    References listed on IDEAS

    as
    1. Shapley, Lloyd S & Shubik, Martin, 1969. "On the Core of an Economic System with Externalities," American Economic Review, American Economic Association, vol. 59(4), pages 678-684, Part I Se.
    2. David Lowing & Kevin Techer, 2022. "Marginalism, egalitarianism and efficiency in multi-choice games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(4), pages 815-861, November.
    3. Stefan Ambec & Yann Kervinio, 2016. "Cooperative decision-making for the provision of a locally undesirable facility," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(1), pages 119-155, January.
    4. Alcalde-Unzu, Jorge & Gómez-Rúa, María & Molis, Elena, 2015. "Sharing the costs of cleaning a river: the Upstream Responsibility rule," Games and Economic Behavior, Elsevier, vol. 90(C), pages 134-150.
    5. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 499-521, June.
    6. Samuel Ferey & Pierre Dehez, 2016. "Multiple Causation, Apportionment, and the Shapley Value," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 143-171.
    7. van den Brink, René & He, Simin & Huang, Jia-Ping, 2018. "Polluted river problems and games with a permission structure," Games and Economic Behavior, Elsevier, vol. 108(C), pages 182-205.
    8. Sudhölter, Peter & Zarzuelo, José M., 2017. "Characterizations of highway toll pricing methods," European Journal of Operational Research, Elsevier, vol. 260(1), pages 161-170.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Hazardous waste Transportation network Cost allocation Multi-choice games. JEL Codes: C71 Q53 R42; Hazardous waste; Transportation network; Cost allocation; Multi-choice games. JEL Codes: C71; Q53; R42;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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