Conservation and Economic Efficiency: An Approach to Materials Policy

By Talbot Page; African Diaspora Studies Institute | Go to book overview

selected. For each of these 35 shipments, Moshman traced out the route and computed the mileage in each cost territory. The cost factors were then averaged with weights proportioned to the distances in each cost territory.

To find the cost of a particular shipment, these averaged cost factors were added over the shipment's route. For each car type and each cost territory, there were just four cost factors. For example, in the New England cost area, the cost factors for a gondola are as follows:

line cost factor per ton mile 0.0037
line cost factor per car mile 0.3620
terminal cost factor per carload 42.76
terminal cost factor per ton 0.0028

To compute the cost of a single car shipment inside this cost region Moshman used the formula

Cost = [0.0037 (tons) + 0.3620] · (miles) + 2 [0.0028 (tons) + 42.76]

In order to compute the cost of a shipment inside a single cost area, all that is needed from the waybill is the number of tons shipped and the distance. An n car shipment would have a computed cost of n times the single car shipment. While there are some differences between Moshman's results and those of the burden study, the results are much the same because both approaches fundamentally rely on the ICC's cost factors.


Notes
1.
John Meyer, Merton Pack, John Stenason, and Charles Zwick, The Economics of Competition in the Transportation Industries ( Cambridge, Mass., Harvard University Press, 1960) appendix A, pp. 274-276; and Ann Friedlaender, The Dilemma of Freight Transport Regulation ( Washington, D.C., The Brookings Institution, 1969) appendix A, pp. 191-194.
2.
Cost formulas allow different empty return ratios on aggregate bases.
3.
Herschel Cutler, "Role of Transportation in Disposal of Obsolete Metallic Waste," Waste Age vol. 1, no. 4 ( July-August 1970).
4.
Moshman Associates, Transportation Rates and Costs for Selected Virgin and Secondary Commodities, a study for the U.S. Environmental Protection Agency, 1973.

-225-

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Conservation and Economic Efficiency: An Approach to Materials Policy
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Foreword xi
  • Preface xv
  • Title Page xix
  • 1 - Introduction: Toward A Materials Policy 15
  • Part One - Material Flows and Uses 17
  • 2 - Virgin Material Intensity and Waste Management 33
  • 3 - Competition Between Primary and Secondary Industries 34
  • Part Two - Intratemporal Efficiency 59
  • 4 - Discriminatory Pricing 61
  • 5 - Disposal 105
  • 6 - Taxes on VIrgin Materials 139
  • Part Three - Intertemporal Equity 143
  • 7 - The Present Value Criterion 170
  • 8 - The Conservation Criterion 188
  • 9 - The Criteria Reconciled 206
  • 10 - Conclusion 208
  • Appendixes 215
  • Notes 221
  • Notes 225
  • Notes 234
  • Notes 251
  • Index 253
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