Economies of Scale, Transport Costs and Location

In: Studies in Applied Regional Science 16

Abstract

1 Introduction -- 1.1 Introduction -- 1.2 Least Cost Theory -- 1.3 Central Place and Interdependence Theories -- 1.4 Other Approaches -- 1.5 Conclusion -- 2 Objectives of the Study -- 2.1 Introduction -- 2.2 Description of the Theoretical Model -- 2.3 Comparison with Planning Models -- 2.4 Objectives of the Study -- 3 Static Model Assuming Constant Returns to Scale -- 3.1 Introduction -- 3.2 Locational Framework, Production and Transport Activities -- 3.3 Disposal Activities -- 3.4 Constraints Imposed by Market Conditions -- 3.5 Costs -- 3.6 Specification of the Programming Problem -- 4 The Static Model with Increasing Returns -- 4.1 Introduction -- 4.2 Economies of Scale -- 4.3 Respecification of the Programming Problem: Part I -- 4.4 Quasi Production Activities -- 4.5 Total Production Costs for the Production Unit -- 4.6 Respecification of the Programming Problem: Part II -- 4.7 Combination of Production Activities -- 4.8 Computational Problems -- 5 Case Study—The Cement Industry -- 5.1 Introduction -- 5.2 Structure of the UK Industry -- 5.3 Cost Structure of the Industry -- 5.4 Spatial Characteristics of the Market Area -- 6 Solution of the Static Cement Study -- 6.1 Introduction -- 6.2 The Calculated Optimum for the Static Study -- 6.3 Sensitivity Analysis -- 6.4 Comparison of Actual and Calculated Distributions -- 6.5 Conclusion -- 7 The Multiperiod Version of the Model -- 7.1 Introduction -- 7.2 Restatement of the Objective -- 7.3 Decision Variables -- 7.4 Cost Parameters -- 7.5 Edge Effects Associated with Capital Costs -- 7.6 The Multiperiod Programming Problem -- 7.7 Case Study: Introduction -- 7.8 Market Area -- 7.9 Cost Estimates -- 7.10 Solution of the Multiperiod Model -- 8 A Competitive Model Assuming Free Entry -- 8.1 Introduction -- 8.2 The Model -- 8.3 Application to the Cement Study -- 8.4 Solution of the Model -- 8.5 The Model Assuming Elastic Demand -- 8.6 Solution Assuming Elastic Demand -- 8.7 Conclusions -- 9 Conclusions -- 9.1 Introduction -- 9.2 Programming Models and Planning -- 9.3 The Nature of Economies of Scale -- 9.4 Locational Influences: The Static Model -- 9.5 Locational Influences: The Multiperiod Model -- 9.6 The Competitive Model -- 9.7 The Importance of Transport Costs -- Appendices -- A Additional Notation for Chapter 3 -- B Summary of United Nations (1963) Study Data -- C General Data for the U.K. and U.S. Cement Industries -- D Regional and County Analysis of Cement Deliveries (1965) -- E Estimated Road Distances -- Notes.