Intertemporal and Spatial Depletion of Landfills

Fondazione Eni Enrico Mattei Working Paper No. 14.98

36 Pages Posted: 17 Sep 1998

See all articles by Gérard Gaudet

Gérard Gaudet

University of Montreal - Department of Economics; Centre Interuniversitaire de Recherche en Economie Quantitative (CIREQ)

Michel Moreaux

University of Toulouse 1 - Groupe de Recherche en Economie Mathématique et Quantitative (GREMAQ)

Stephen W. Salant

University of Michigan; Resources for the Future

Date Written: November 1997

Abstract

This paper generalizes Hotelling?s (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 Herfindahl?s (1967) analysis of the socially optimal utilization of multiple 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 applications, it is essential to an understanding of solid waste problems. Landfill space may be regarded as a depletable resource, since space extracted today is unavailable tomorrow. But since cities and landfills are dispersed geographically, transshipment of waste commonly occurs within and between countries. Our analysis characterizes socially optimal waste flows over time and space and will facilitate the evaluation of the many government interventions designed to regulate such shipments of solid waste.

JEL Classification: Q32, Q38

Suggested Citation

Gaudet, Gérard and Moreaux, Michel and Salant, Stephen W., Intertemporal and Spatial Depletion of Landfills (November 1997). Fondazione Eni Enrico Mattei Working Paper No. 14.98, Available at SSRN: https://ssrn.com/abstract=124410 or http://dx.doi.org/10.2139/ssrn.124410

Gérard Gaudet

University of Montreal - Department of Economics ( email )

C.P. 6128, succursale Centre-Ville
Montreal, Quebec H3C 3J7
Canada

HOME PAGE: http://sceco.umontreal.ca/repertoire-departement/vue/gaudet-gerard-1/

Centre Interuniversitaire de Recherche en Economie Quantitative (CIREQ) ( email )

C.P. 6128, Succursale Centre-ville
Montreal, Quebec H3C 3J7
Canada

HOME PAGE: http://www.cireqmontreal.com

Michel Moreaux

University of Toulouse 1 - Groupe de Recherche en Economie Mathématique et Quantitative (GREMAQ) ( email )

Manufacture des Tabacs
21 Allees de Brienne
Toulouse, 31000
France

Stephen W. Salant (Contact Author)

University of Michigan ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States
313-764-2370 (Phone)
313-764-2769 (Fax)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

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