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EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

European Journal of Operational Research I 01 (1997) 430-441

ELSEVIER

Theory and Methodology

Spatial organization of an industrial area: Distribution of the environmental cost and equity policies l
John Karkazis a.* Brian Boffey b
a Departmentof OperationsResearch and Marketing,Athens Universityof Economics and Business, Athens, Greece b Departmentof Statistics and Computational Mathematics, The UniuersityofLicerpool, Li~'erpool, UnitedKingdom
Received 1 August 1995; accepted l April 1996

Abstract In this paper we introduce a methodology for a spatial organization of an Industrial Area with environmental criteria. In particular, we analyze in depth the impact of the realism (number of simulated wind directions) of airborne pollution spread models on the accuracy of their results. Based on the above experience, we propose a methodology for the distribution of the economic and environmental burden from the operation of polluting units in Industrial Areas to the firms and public respectively. Finally we introduce and compare appropriate environmental equity policies. 9 1997 Elsevier Science B.V.

Ke)~vords: Airborne pollution; Environmental equity; Spatial planning; Industrial Areas

1. Introduction A lot of incentives, tools and policies for regional development are not functioning properly due, mainly, to the absence o f coordination between private and public initiatives, serious deficiencies in the corresponding legislative framework and above all due to the great problems associated with the process of adjustment of regional planning policies, methodologies and models to a continuously and rapidly changing intemational socio-economic environment (a synopsis o f the above problems can be found in Karkazis, 1993). Of special interest to the present

work are the problems related mainly to the internal organization of Industrial Areas (I.A.'s) with environmental criteria. Karkazis (1993) distinguishes the following two serious gaps in the legislative framework regarding the protection o f environment from organized industrial activity in Greece and abroad: " 1 . Lack of legislation introducing upper limits for the total emission of polhttants in LA.' s. The legislation introducing upper limits to the emission of certain polhttants from individual stacks is not a sufficient measure for areas accommodath~g large industrial activity where the cumulative polhttants' emission rates may exceed the safety lhnits and create serious hazards to the population and its environment. The process o f specifyhzg cumulative upper limits should take into account the following basic factors: the morphology of the ground, the meteorological conditions prevailing in the area ttn-

9 Corresponding author. i This work is part of a research project funded by the General Secretariat of Research and Technology (Athens, Greece) and titled: "Location of investments and regional development in the border regions of Greece".

0377-2217/97/Si7.00 9 1997 Elsevier Science B.V. All rights reserved. PII S0377-2217(96)00210-X

J. Karkazis, B. Boffey / European Journal of Operational Research 101 (1997)430-441

431

der consideration and the distribution of population in it. 2. Lack of 'internal plans' for the location of polluting units inside an LA., mainly concerning environmental criteria".

actual gtaek height

f~ I

height h

wind dir'eetion

Karkazis (1991b) analysed the latter problem with reference to the I.A. of Thessaloniki and proposed an internal organization plan. His main conclusions were: "1. The variation of the total pollution load of the neighboring urban sites as a result of relocations of the polluting unit inside the I.A. is very significant. Note at this point that the LA. of Thessaloniki has roughly the shape of a rectangular 2.5 km 1.5 km (...) hz particular, the variation of the maximum to the minimum value of the total pollution load is approxhnately 1000.
2. For the prevailhzg meteorological conditions and the existing distribution of urban sites around the LA. an average stack height of 20 m (equivalent stack height 40 m) minhnizes the total pollution load. For stack heights greater than 20 m an increment of the total pollution load is recorded".

Fig. 1. Equivalent stack height.

In the next section (Section 2) we give a brief overview of the models concerning the airborne pollution spread and we analyze in depth the impact of their realism (number of simulated wind directions) on the accuracy of their results. In Section 3 we introduce a methodology for a spatial organization of an I.A. with environmental criteria and apply it to the I.A.'s of Ioannina, Thessaloniki and Xanthi, all located in Northern Greece. Finally in Section 4 we propose a methodology for the distribution of the economic and environmental burden from the operation of polluting units in I.A.'s to the firms and public respectively and introduce/compare appropriate environmental equity policies.

2. Modelling airborne pollution spread Pasquil (1961) and Turner (1970) gave an in-depth analysis of the mechanism with which airborne pollution is spread. In the presence of a single wind the basic parameters governing pollution spread are:

- The equivalent stack height, h, of the polluting unit (Fig. 1), which is the altitude reached by the effluent gases after coming out of the chimney with a relatively high speed and temperature. Notice that for a conventional coal-fired power plant gases speed may reach tens of kilometers per hour while their temperature may reach hundreds of degrees Celsius. - High wind speeds, causing enlargement of the pollution plume and the subsequent reduction of the pollutants' concentration in it. Low wind speeds cause the reverse effect. The pollutants' plume exhibits some very interesting characteristics that should be closely viewed when deriving corresponding pollution spread models (Strom, 1976) (see Fig. 2). These are: - Pollution spread is confined to a narrow angle (approximately 20-25 ~) along wind direction. - Pollutants are carded a long distance along the wind direction (frequently 10-30 km). As an example, for the meteorological conditions prevailing in Thessaloniki, Northern Greece, the maximum concentration of pollutants corresponding to an equivalent stack height of 100 m appears between 12500 m and 15000 m (depending on the wind direction) from the site of the polluting unit. Furthermore, pollutants' concentration remains relatively high (within 30% of the maximum value) as far as 25 000-30 000 m from the polluting unit (Fig. 4). - Pollutants' concentration on the ground along any given direction defines a 'quasi-convex' function. This characteristic allows for the derivation of efficient locational algorithms (Karkazis, 1991a; Karkazis and Papadimitriou, 1992). The pollution spread models used in this application (Eqs. (2.1) and (2.2)) have been extensively analysed and applied (Gifford, 1961; Pasquil, 1961; Karkazis et al., 1992). The first model (Eq. (1.1)) gives the pollutants' ground concentration (PGC) in g r / c m 2 at a planar

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J. Karkazis, B. Boffey / European Journal of Operational Research l Ot (1997) 430-441

mflxttnl.li12

Fig. 2. The mechanism of pollution spread.

point P~ and in the presence of a given wind direction j as a function of: the wind speed u./, the equivalent stack height h, the coordinates (x i ,Yi) of P~, the pollutants' emission rate Q of the polluting unit, and the atmospheric stability conditions described by the functions s(x) and q(x):

9 No atmospheric inversions are taking place. When planning the location of obnoxious facilities, the planner may wish to optimise some aggregate measure such as (Fig. 3):

TPL(U) = E w,APe(V,),
i

(2.3)

aa
cap,) =

ujs( xi) q(xl)

Xexp - 0 . 5 y/2 + ~ ,

(2.1)
where a is a constant. For the analytic form of s(x) and q(x) see Karkazis and Papadimitriou (1992). Notice at this point that the coordinates x i, Yl of Pi depend upon the direction of wind, as shown by Fig. 2 (the coordinate system being centered at the polluting unit and the x-axis coinciding with the wind direction). The next model (Eq. (2.2)) gives the average pollutants' concentration (APC) at a point Pi throughout a given period of time (usually a year): APC(V,) -- E f ~ C ~ , ( e , ) , (2.2) J where f/ represents the average % frequency of wind j throughout the period under consideration, j = 1 , 2 , . . . , m . Usually statistical data are given for m = 8 wind directions; if more wind directions are needed, then simulation techniques can be applied. The above models give a realistic representation of the airborne pollution spread under the following conditions (Strom, 1976): 9 The ground should be almost flat, with slopes not exceeding 5 - 7 ~.

where TPL(U) gives the total pollution load (TPL) of a system of n urban sites (i = 1,2 . . . . . n) centered at planar points Pi due to a unit operating at point U, and w~ represents the population of urban site i. APC(P i) gives the average pollutants' concentration at point Pi (Eq. (2.2)). Notice that model (2.3) has been extensively applied in the context of locational algorithms (Boffey and Karkazis, 1993).

2.1. The number of simulated wind directions

Due to the exponential decrease of pollutants concentration (p.c.) along the transverse direction (along a direction parallel to the y-axis, Fig. 2) the number of (simulated) wind directions and consequently the presence of wind gaps in the correspond-

yj : ~ _ "

" ~t~

urban site

xj
lqGlJl~ 3. "Thea~egate pollution model Fig. 3. The aggregatepollutionmodel.

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433

ing r o d o g r a m s is a critical factor both for the m o d e l ' s realism as well as for the efficiency of algorithmic schemes. Notice that the term ' r o d o g r a m ' refers to the system of iso-polluting curves around a polluting unit. This issue has been addressed by Karkazis (1991a) and Karkazis and Boffey (1994). The main drawback of the existing models and algorithms is the low level of realism in the representation o f meteorological conditions and the distribution of total pollution load. Actually, the number of possible wind directions is infinite whereas p.c. reduces rapidly as the angle 0 (Fig. 2) between wind direction x-axis and site direction UP increases. When the angle reaches the level 22.5 ~ p.c. becomes practically zero. Karkazis (1991a) considered the accuracy of the n-wind model. He employed simulation techniques to produce a large number of wind directions (simulating specifically the wind pattern conditions o f Athens and Thessaloniki regions). It was found that the number of wind directions required for achieving convergence (at a 10 -6 relative error level) for p.c. is around 20 000. Notice at this point that a 10 -6 relative error in the basic pollution load function C./~ can produce final errors that may well exceed 1% through propagation (e.g. calculations repeated for a large number of protected urban sites times a very large number of wind directions times a very large number o f nodes in branch-and-bound algorithmic s c h e m e s ) . As a consequence o f the extremely large number of wind directions needed to secure convergence, the involvement of simulation techniques in the existing optimal algorithmic structures is prohibitive. Even a moderate number o f wind directions (16 or 32) imposes a huge computational burden on such algorithmic schemes. On the other hand, Karkazis and Boffey (1994), testing an optimal algorithm for locating obnoxious facilities on a network using different number of wind directions, found that the optimal solution of the n = 1600 problem (Thessaloniki region data) was deviating less than 2% from the corresponding solution of the n = 50 problem. They noticed that since a relative error of up to 10% is inherent in most meteorological data a comparable level of error for the value o f total pollution load would be acceptable. In the light o f the tests performed and for the particular meteorological data of Thessaloniki region, they concluded that simulating 4 0 0 - 5 0 0 wind directions and per-

forming at least 7 iterations in the corresponding branch-and-bound scheme would lead to solutions deviating from the global optimal solution, corresponding to n = 20000, by less than 10%. The regions of Ioannina, Thessaloniki and Xanthi (Northern Greece) are presenting three different meteorological patterns and hence their selection allows for the proposed methodologies and techniques to be applied in different environments and, as in the case of Xanthi, in extreme ones. In particular, the meteoTable 1 Meteorological conditions of the areas under consideration loannina Actual wind S SE E NE N NW W SW ~eq. 9.1 17.0 13.1 9.7 10.5 17.3 17.9 5.2 Actual wind S SE E NE N NW W SW freq. 13.2 12.6 12.1 1.3 14.8 27.0 13.6 5.4 Xanthi Actual wind S SE E NE N NW W SW ~eq. 8.7 0 0.1 0 91.16 0.03 0.03 0 speed 0.9 0 1.4 0 1.2 2.2 0.5 0 Simulated n = 100 ~eq. 8.2 0 0 0 91.8 0 0 0 speed 0.6 0 0 0 1.2 0 0 0 Simulated n = 1000 freq. 8.6 0 0.1 0 91.3 0 0 0 speed 0.6 0 0.7 0 1.2 0 0 0 speed 2.6 2.2 2.0 2.4 4.2 3.5 2.4 2.5 speed 1.2 1.3 2.0 2.2 1.1 1.2 1.I 1.2 Simulated n = 100 ~eq. 9.4 17.7 13.5 9.4 10.4 16.7 17.7 5.2 speed 1.24 1.35 1.90 1.90 1.2 1.1 1.1 1.1 Simulated n = 1000 freq. 13.2 12.6 12.0 1.2 14.9 27.0 13.5 5.4 speed 2.5 2.2 2.0 2.6 3.9 3.4 2.5 2.5

Thessaloniki Simulated n = 100 freq. 13.5 12.5 11.5 i.0 14.6 28.1 13.5 5.2 speed 2.4 2.1 1.9 2.1 3.7 3.3 2.5 2.4

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J. Karkazis, B. Boffey / European Journal of Operational Research l O1 (1997) 430-441

rological conditions of Thessaloniki are considered as normal in the sense that the winds are more or less evenly distributed in the 8 main directions. On the other hand, the region of Xanthi exhibits an extremely skewed distribution of wind frequencies with north wind accounting for 91.2%. Ioannina's meteorological conditions, on the other hand, deviate from the normal ones but not significantly. Table 1 gives the wind frequencies and speeds and the distribution of p.c. (for n = 100 and n --- 1000) along the 8 main directions for the three regions under consideration.

3. Spatial organization of an industrial area with emphasis on Northern Greece. The proposed methodology We consider a grid (set) of 5 x 5 equidistant and evenly dispersed points throughout a square of side length equal to 1 km (Fig. 4). The center of the square coincides with the central point of the I.A. under consideration, whereas its sides are parallel to the main wind directions. Note at this point that the typical I.A. of the region has rough!y the shape of a rectangular 1 km X 1 km. An experimental (obnoxious) unit is then located at the 25 different grid points and the corresponding maximum APC site as well as the TPL of the system of the surrounding urban areas is evaluated. The average TPL (over all 25 grid points) is also evaluated. The experimental unit has an equivalent stack height equal to h = 50m and emits Q = 100 gr of pollutants per sec. These characteristics are typical of the large polluting units operating in the I.A.'s of Greece. Throughout this application 400 simulated wind directions were used in the pollution models employed. As was pointed out in Section 2.1 experimentation showed that 400 wind directions give a realistic representation of the prevailing in the above I.A.'s' meteorological conditions.
3.1. loannina I.A.

loniki which is characterized by relatively normal meteorological conditions. The most frequent winds are the West (18%) and the Northwest (17%) winds. The frequencies of the rest vary from 5% to 13%. Results regarding APC and TPL for the 25 grid points are given in Fig. 4a. The TPLs of the surrounding urban sites vary insignificantly, from a minimum value of 1.31 to a maximum value of 1.5 recorded at a village 15 km northwest of the center of Ioannina. The APC also varies insignificantly from a minimum value of 0.0016 to a maximum value of 0.0020. The average TPL over the 25 grid locations is 1.403. Consequently the TPL caused by the simultaneous emission of 25 experimental units (at the grid points) is 1.403 X 25 = 35.08. On the other hand, if we consider a large experimental unit with the same stack height at the center of I.A. emitting Q = 25 x 100 = 2500, then the corresponding TPL is 35.1. Consequently, the center of the I.A. of Ioannina is highly representative of the corresponding spatial distribution of TPL at the 25 grid points. Hence, the center of the I.A. of Ioannina could be taken as a pilot point in the process of its internal organization with environmental criteria.
3.2. Thessaloniki I.A.

The I.A. of loannina, a city of 57000 inhabitants, is located approximately 20 km northwest of the city's center. The distribution of wind frequencies and speeds is slightly skewed compared to Thessa-

Thessaloniki is the largest city in Northern Greece with a population of approximately 800000 inhabitants. The I.A. of Thessaloniki is located 25 km west-northwest of its center. The prevailing meteorological conditions in this area are normal. The prevailing wind is the Northwest wind with a frequency 27% and speed 3.46 m / s e c . The frequency of the remaining winds varies from 1% to 15%. Results regarding APC and TPL for the 25 grid points are given in Fig. 4b. The TPL varies insignificantly from a minimum value of 2.13 to a maximum value of 2.43 recorded at a site approximately 4 km north of the I.A.'s center. The APC varies also insignificantly from a minimum value of 0.0007 to a maximum value of 0.001 recorded at a village 8 km northwest of its center. The average TPL over the 25 grid locations is 2.3 and thus the TPL caused by the simultaneous emissions of 25 experimental units (located at the grid

J. Karkazis, B. Boffey/ European Journal of Operational Research 101 (1997) 430-441

435

s. Ioanninn

o0o~
IZ41~ 123s0 I 0.93
I 239o

1 8g, II 8.82
D.91

11243~

1 2390

1 0.8'
I [ 2370 [

I~
b. T h c s s a l o n i k i

11 o.8,

1~

-coordinates -total p o l l u t i o n load -max pollutants' concentration

pollution values should be divided by' ] 0 0 0 c o o r d i n a t e s in meters O=ZO0 h=50 w i n d s = l OD c. X a n t h l

2.59

2.84

2.92

Fig. 4. The system (grid) of candidate locations of the experimental unit.

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J. Karkazis, B. Boffey / European Journal of Operational Research 101 (1997) 430-441

intersections) will be 2.3 25 = 57.5. On the other hand, a large experimental-unit emitting Q = 2500 g r / s e c from the center of the I.A. causes a TPL equal to 57. Consequently the center of the I.A. is quite representative of the spatial distribution of TPL at the 25 grid locations and thus it can be taken, as with the previous case, as a pilot in decisions regarding environmental issues.
3.3. Xanthi I.A.

The I.A. of Xanthi, a city of 35 000 inhabitants, is located approximately 7.5 km southwest of the city's center. The prevailing wind in this area wind is the North with frequency 91.2% and speed 1.2 m / s e c . Results regarding APC and TPL for the 25 grid points are given in Fig. 4c. The TPL of the surrounding population varies significantly, from a maximum value of 0.074 (unit at position {0,250}) to a minimum value of 0.003 (unit at position { - 5 0 0 , 500}). Subsequently, a relocation of a unit from position {0, 500} by only 500 m to the west can reduce total pollution load by a factor of almost 25. The APC also varies significantly from 0.001 to 0.004. The maximum pollutants' concentration (corresponding to a unit at {0,500}) occurs at a small village 3 km westwards from the center of the city. The average TPL is 0.044. From the above it is apparent that the TPL of the surrounding urban areas due to the simultaneous emission of 25 experimental units (at the grid points) will be 0.044 25 = 1.1. On the other hand, if we consider a large experimental unit, with Q = 25 I00 = 2500 gr/sec and the same equivalent stack height, emitting from the center of the grid, then the total pollution load is 1.3, that is the central point of the industrial area under consideration is quite representative of the distribution of the pollution loads at the 25 grid points. Consequently, some first conclusions regarding the future development of the Industrial Area from an environmental point of view could be based on the examination of its central point.
3.4. Conclusions

- The key factor in the variation of the TPL and APC (as a result of relocations of the experimental unit among the 25 grid points) is the degree of skewness of the wind frequencies and speeds distribution with the population density distribution playing a secondary role. Significant variations can only be caused by extremely skewed wind frequency distributions, as with the case of Xanthi. - The central point of the grid is highly representative of the spatial distribution of TPL among the 25 grid locations and hence it can be taken as a pilot in the process of internal organization of an I.A. with environmental criteria.

4. The distribution of environmental cost: Envi-

ronmental equity policies

As mentioned in Section 1, there is a lack of legislation at an international level regarding the imposition of upper limits to the collective emission of pollutants from polluting units operating in an I.A. Thus, we may have the case where all individual polluting units in an I.A. are complying with the environmental standards governing the emission of pollutants from a stack, but they would create collectively p.o. loads (TPL or APC levels) exceeding safety levels. In this case measures should be taken by the administration of the I.A. so that the collective p.o. levels be brought down to acceptable levels. This could be done by asking the firms operating in the I.A. to increase appropriately their stack heights. This measure will impose a cost, sometimes very significant, on the polluting units operating in the I.A. Alternatively, a priori measures could be taken during the phase of internal organization of the I.A. so that the corresponding cost (which we call enviromnental cost) can be incorporated in the price the firms are paying to acquire land in it. Note at this point that the stack height is an efficient tool for controlling p.c. levels, since both TPL and APC reduce rapidly as the stack height increases. The problem of evaluation of the environmental cost, and of its distribution to those involved in polluting activities, although a highly difficult and complex one, is of particular importance for the rationalization of the process of access and consump-

The main conclusions that can be drawn from a comparative analysis of the three I.A.'s under consideration are:

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437

tion of environmental resources from polluting activities (Kneese and Schultze, 1975). A prerequisite for the development of an environmental cost distributing process is the construction of an efficient algorithm that will evaluate the appropriate stack height for an individual unit to secure compliance with safety limits. Section 4.1 deals with this problem.

f(h)

MODBIN method m,~=blnary method N.

Rmi)

4.1. Determination o f the bounding stack height

The need to comply with environmental legislation (e.g. limits imposed on the emission of pollutants or to TPL, APC) with the least possible cost to the firm gives rise to the multi-objective problem of determining the location and the stack height of the unit so that the above objectives (compliance with environmental legislation and minimization of cost) are satisfied. Assume for the moment that the firm has already selected, independently of the stack height, a site inside the I.A. to establish the polluting unit and that TPL is the pollution measure under control. Function Cii (of Eq. (2.1)) is apparently a strictly decreasing function of h. Consequently TPL(h) is also strictly decreasing function of h. Due to this characteristic of the above aggregate pollution function, the problem of cost minimisation reduces to the problem of finding a value h* for the equivalent stack height that satisfies the following relation: TPL(h* ) = a, (4.1)

T-Fig. 5. The Binary and MODBIN search methods.

hand, the current iteration step in the Binary method is: if [a i, b i] is the current interval containing the root and m i is the its midpoint: if f ( m i) > 0 then ai+ I = mi, bi+ I = hi, if f ( m i) < 0 then hi+ I = m i and a,+ ~ = ai, otherwise if f ( m i) = 0 then m; is the root. The absolute value of the derivative of the function TPL(h), and consequently of f(h), decreases rapidly (exponentially) with h. As a result the mid point m i of the current interval [a i, b;] in the binary search (Fig. 5) is not always a good approximation to the root h* of f. The smaller the value of the ratio

where a is the limit imposed on TPL. Hence, the original problem reduces to the one of finding the roots of the function

f ( mi) - f ( bl) r= f(ai ) _f(bi) ,

r<<0.5,

(4.4)

f ( h ) = TPL(h) - a,

(4.2)

which is a particularly complex one. Since the evaluation of the values of f is usually an extremely time consuming process, we have employed both the Newton and Binary metlmd in order to explore the possibility of marginal savings in the required computational effort. Recall that the Newton method employs the following iterative scheme:

the greater the overestimation of the approximation m i is. On the other hand, if r >> 0.5, then the greater the ratio r is, the greater the underestimation of the approximation is. To counter this problem we introduce the following modification in the current step: Instead of taking each time the midpoint m i of interval [a i, bi], the point

"4 =

+ r ( b i - a,)

hi+ ~ = h i - f ( hi) / f ' ( h~) ,

(4.3)

where h i is the approximation of the root at the i-th iteration and f ' is the derivative of f. On the other

is taken. If the adjusting factor r is equal to 0.5, then we get the ordinary step of the binary search method. We call the method of search based on the above

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J. Karkazis, B. Boffey / European Journal of Operational Research 101 (1997) 430-441

INDUSTRIALAREA 6 9 ]4 9 e (~) : centre of ].A.

,I.. !1
2km Scheme l.

The establishment of an efficient method for the determination of the bounding stack height is of great importance for the development of equity policies regarding the distribution of environmental cost since these policies require the evaluation of a large number of bounding stack heights (for different sites inside an I.A.). This problem will be analyzed in the following subsection.

4.2. Equity policies

modification the MODBIN (Modified Binary) method. Comparative numerical results, at 0.25% relative accuracy level, with the above three methods for the case of Thessaloniki I.A. are given in Table 2; a diagram of the 9 sites involved is shown in Scheme 1. From Table 2 it is apparent that the MODBIN method provides the best performance. Notice at this point that 'Newton' search requires at each step the calculation of two values of function f : f ( h i ) and an approximation to its derivative, The problem of equity in decisions involving location of obnoxious facilities and routing of hazardous materials is addressed in a survey by Erkut and Verter (1994). He primarily considered the notion of environmental equity by distributing the hazardous impacts in a fair manner among the members of the public. In this subsection we will consider the notion of environmental equity in the following manner: We consider an I.A. divided into a number n of sites and a global (upper) limit a" for the nuisance effects suffered by the surrounding population with relation to a specific type of pollutant and a specific type of nuisance effect measure M (e.g. TPL or APC). By global limit we mean a limit that will apply to the combined rate of pollutant emission by all units operating in the I.A. In the context of the environmental equity policy considered here the general problem for a firm operating a polluting unit at site i is the following: Min s.t.
Table 2 Performance of bounding stack height evaluation methods (see Scheme I for a diagram of the 9 sites) Number of function values' evaluations Site
1 2 3 4 5 6 7 8 9

f'(hi) =

f ( h i + Ah) - f ( hl) Ah '

where Ah is a very small number. Since the evaluation of the values of f is by far the most time consuming part of the search method we have to double the number of iterations in 'Newton' search in order to get a comparable number (actual number) of iterations to other methods.

hi, Pi

C( h i, Pi) -- Cl( hi) -t- C2(Pi) M ( h i, Q ( p i ) ) < a * / n ,

(4.5)

Binary search
11 8 10 II 11 10 10 l0 11

MODBIN search
7 7 7 7 7 7 10 7 7

'Newton' search 14 14 16 14 14 16 14 14 14

where h i and Pi are respectively the stack height and production capacity of the unit at site i, Q(pi ) is the pollutant emission rate corresponding to capacity Pi and C(hi, p~) is the total cost for building a stack height h i and a unit of capacity p~, which is the sum of the above two costs. It is assumed here that the administration of the I.A. plans the above policy with the prospect of a full capacity for its operations (all n sites will be sold). For the polluting unit firm the problem primarily concerns the determination of a trade-off between capacity level and stack height that will minimize total building up costs in the context of constraints (4.5).

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439

In the case in which the capacity of the unit is fixed (given), and consequently emission rate Q(p;) is considered constant, problem (4.5) reduces to the following: Min
hi

Cl( hi)
M(hi) < a ' / n .
(4.6)

s.t.

Since Cl(h i) is monotonically increasing with hi, if M(hi) is monotonically decreasing with h i (as is the case with TPL and APC), then problem (4.6) has the following unique solution h ' :
a*

Due to the variation of the bounding stack height with the site, it imposes a non-equally distributed economic burden on the firms entering the I.A. A more flexible policy would be to relax the local upper limit and retain the global upper limit as a means of protection of the surrounding populations. This global limit policy leads to the following problem:

Min
hs 9Pk
s.t.

C(hk,pk )

h; : M( h; ) = - n

(M=TPLorAPC).

(4.7)

Thus the problem of environmental equity for the firm in the case of fixed production capacity reduces to that of finding the bounding stack height with regard to what we call local (nuisance effects) upper limit, which is equal to a'/n. It is immediate that the above 'fixed capacity' environmental equity policy, or local lhnit policy, has certain advantages and disadvantages.

k-I

M(hk,Q(pk) ) < a * -

E M(hi,Q(Pi)).
i =1

(4.8)
The above model formulates the decision making process for the current (k-th) firm to enter the I.A. and establishes itself at site k when sites i = 1,2 . . . . . k - 1 are already occupied by polluting units. The flexibility of the above policy relates to the fact that the I.A. firm currently entering can 'absorb' all remaining capacity of the global pollution limit a ' . Highly polluting units can benefit from the global limit policy. On the other hand, this policy could sometimes lead to a fierce competition among highly polluting units wishing to enter the I.A. to 'buy' the remainder global pollution limit capacity. This competition may bring profits to the I.A. but on the other hand may relax the degree of protection enjoyed by the surrounding population. In the remainder of this section we consider the application of the local limit (environmental equity) policy on the three I.A.'s being studied. The results are presented in Fig. 6. The central site on the grids coincides with the centre of I.A. For the evaluation of the bounding stack height the MODBIN method was used with relative e r r o r < 0.025%. The global pollution limit a" is equal to 10 - 3 g r / c m 2, and regards the total pollution load (M = TPL). In the case of Thessaloniki, which has the most 'normal' meteorological conditions (the frequency/speed ratios exhibit the least standard deviation ( = 2.180)) the maximum deviation in the equivalent stack heights reaches 6 m or 2.2% (maximum = 277

4.3. Advantages
- The policy is technically easy for the administration of the I.A. It requires to assign to each site a local upper limit (a"/n) and for the firm to evaluate the appropriate cost minimizing stack height complying with the local upper limit on nuisance effects. - This policy offers a high level of protection to the public (surrounding populations) since the rules both for the polluting unit and the administration will be clear cut from the beginning, leaving no room for bargaining. Another safeguard for the public is that this policy allows only small and medium polluting units to enter the I.A. excluding the highly polluting ones (e.g., petrochemical or paper plants).

4.4. Disadvantages
- The policy lacks flexibility since it imposes, in some cases, a prohibitive cost burden on the firms wishing to enter the I.A. Polluting units with high emission rates (like petrochemical plants) may not be in a position (due to technical limitations or cost considerations) to build stacks of the appropriate height.

440

J. Karkazis, B. Boffey / European Journal of Operational Research 101 (1997) 430-441

221

21B

Iterations: G-g Maximum deviation In slack heights:

4.29~

a. loannlna

274
Iterations: 5-10 Maximum dcviat|on in stack heights: Z.2~

274

I 273

272

b. Thessaloniki

I
Iterations: 2-G
Maximum deviation in stack heights: 9.59~

c-~oo.~oo~.I J(-~so..sr I I{o~oo~

I I4g

Vo.o, I o.o,

Vo.o,

o.o, I
I 141

c. Xanthl

I 14N

Fig. 6, Environmental equity policies. The numbers in squares represent stack heights in meters. For their derivation a binary search was performed. Plants create the same total pollution load = a / 2 5 (a = 10 -3 gr/cmZ).

J. Karkazis, B. Boffey / European Journal of Operational Research 101 (1997) 430-441

441

m, m i n i m u m = 271 m). The number of iterations required to evaluate equivalent stack heights within the 0.025% level of accuracy varies from 5 to 10 (Fig. 6b). In the case of Ioannina, with the f r e q u e n c y / s p e e d ratios exhibiting the second highest standard deviation equal to 4.299, the maximum deviation in the equivalent stack heights reaches 9 m or 4.2% (maximum = 222 m, minimum = 213 m). The number of iterations required varies from 6 to 9 (Fig. 6a). Finally, in the case of Xanthi, with the least normal meteorological conditions characterized by a very high standard deviation equal to 27.704 for the f r e q u e n c y / s p e e d ratios, the m a x i m u m deviation in the equivalent stack heights reaches 13 m or 9.5% ( m a x i m u m - - 150 m, minimum = 137 m). The number of iterations required varies from 2 to 6 (Fig. 6c).

of variation of f r e q u e n c y / s p e e d ratios along the 8 main wind directions. Finally, the rate of increment seems to be exponentially decreasing.

References Boffey, B., and Karkazis, J. (1993), "'Models and methods for location and routing decisions relating to hazardous materials", Studies in Locational Analysis 5, 149-166. Erkut, E., and Verter, V. (1994), "ttazardous materials logistics: A review", Research Report No. 94-3, Research Papers in Management Science, University of Alberta. Gifford, F.A. (1961), "Diffusion around buildings", Nuclear Safety 47, 364-369. Karkazis, J. (1991a), "The problem of locating facilities causing airborne pollution revisited", OR Spektrum 13, 159-166. Karkazis, J. (1991b), "Internal organization of the Industrial Area of Thessaloniki with environmental criteria" (in Greek), Stud. ies in Locational Analysis 2, 67-86. Karkazis, J. (1993), "Industrial Areas: problems and perspectives", in: Proceedings 1st International Symposium on Industrial Areas, University of the Aegean, Chios, Greece. Karkazis,J., and Boffey, B. (1994), "Modelling pollution spread' ', Studies in Locational Analysis 7, 91-104. Karkazis, J., and Papadimitriou, C. (1992), "Optimal location of facilities causing atmospheric pollution", European Journal of Operational Research 58, 363-373. Karkazis, J., Boffey, B., and Malevris, N. (1992), "Location of facilities producing airborne pollution", Journal of the Operational Research Society 43, 313-320. Kneese, A., and Schultze, C. (1975), "Pollution, prices and public policy", The Brookings Institution, Washington, DC. Pasquil, F. (1961), "Atmospheric dispersion modelling", Meteorology Magazine 90, 33-49. Strom, M. (1976), "Atmospheric dispersion", in: A. Stem (ed.), Air Pollution, Vol. 1, McGraw-Hill, New York. Turner, D.B. (1970), Workbook of Atmospheric Dispersion Estimates, publication AP-26, Office of Air Program, US EPA.

5, Conclusions The main conclusions that can be drawn from the previous analysis are: - The variation of the environmental cost, which is in our case the cost o f building a stack of bounding height, is significant even for small relocations o f the polluting units. In the case of Thessaloniki I.A. a small relocation of the polluting unit 750 m to the west (from min to max stack height site) causes an increment of the equivalent stack height by 6 m. - The distribution o f urban population around the I.A. exercises little influence on the variation o f environmental cost. On the contrary, the variation of environmental cost is increasing with the increment