Chapter 7 Environmental economics, industrial process models, and regional-residuals management models

Abstract

Sufficient experience has now been gained in the industrial process/REQM area for a number of conclusions to be drawn, and for various challenges to be identified in future research. The most important fact to emerge is that if requirements management (REQM) modeling is to have practical relevance—in terms of analyzing alternative industrial process technologies, assessing their effects on ambient environmental quality, and indicating guidelines for environmental managers to follow economists need access to detailed physical and engineering models and data. The chapter reviews that the relationship between modelers and users is crucial. Modelers must realize that the object of analysis is not the construction of theoretically elaborate mathematical systems, but the solution of specific problems. For future research on industrial activities, physical measures of inputs, commodity outputs and residuals discharges associated with specific process technologies are clearly superior to monetary measures. Compilations of commonly used industrial technologies and residuals modification processes are extremely useful to REQM modelers. Nonreactive dispersion modeling appears to have reached a satisfactory stage of development, especially for steady-state calculations. Finally, the chapter concludes that mathematical programming and simple tradeoff models can make important contributions. When more experience in environmental systems modeling has been gained, full benefit-cost analyses of regional industrial development programs and environmental quality management may evolve.