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Pallet+Paper+Final - 0 The Externalities of Wood Pallets: A...

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Unformatted text preview: 0 The Externalities of Wood Pallets: A Study of Lumber Use and Waste Management Brian J. Gross Abstract This paper will examine the externalities associated with wood pallets and the cost-benefit analysis of alternative solutions/technologies. My perspective shall be two- fold: of the pallet industry at the national level and of the waste management programs at the management level for a vendee who receives palletized cargo. I will first discuss the pallet industry and systematically uncover multiple externalities occurring from the resource extraction stage to the disposal stage. The second part of my paper will deal with the waste management decisions facing firms with pallets. I will look at alternative technologies and address adoption decisions while looking at a case study involving Home Depots switch to slip-sheets. In the third part of this paper, I will address the economics and politics of third party pallet management systems as a model for economic efficiency and waste reduction. Finally, I will include information and insights gleamed from a professional in the Waste Management field that I interviewed. 1 Table of Contents Pallet Context.......................................................................................................................2 Logging: Externalities Associated with loss in Biodiversity and Carbon Sinks ..........2 Biodiversity Considerations.....................................................................................3 Carbon Sequestration...............................................................................................4 Waste Management of Pallets ...........................................................................................6 Landfill Externality..................................................................................................6 Quality Externality...................................................................................................7 Decision Analysis for Companies Receiving Pallets .......................................................8 Storage Costs ...........................................................................................................9 The Alternatives.....................................................................................................10 Plastic Slip-Sheets..................................................................................................11 Case Study .............................................................................................................12 Third Party Pallet Management Systems ......................................................................13 Summary and Advice on Market and Public Policy Solutions by Ruth Abbe ...........15 References .........................................................................................................................16 2 Pallet Context Transport technology, such as pallets and containers, revolutionized the packaging and distribution industry by cutting the cost, time, and inefficiency of goods...
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Pallet+Paper+Final - 0 The Externalities of Wood Pallets: A...

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