The economic effects of urbanization on the crushed stone industry in the rural municipality of Rockwood, Manitoba

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Jones, Charles William
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Economically, a quarry operation has a greater competitive advantage over its rival firms the closer it locates to the urban market. However, an active quarry operation typically generates environmental disamenities and when placed in an urban-suburban setting, it causes serious land use conflicts. The residents' desire for a clean environment and peaceful surroundings comes into conflict with quarry activity. Over time, the residents demand the local municipal government to control active quarry operations, who in turn may establish zoning ordinances. This action restricts the productive capacity of the industry, which causes an increase in production costs. As the conflict escalates, the quarry operator, for economic reasons, is encouraged to locate further from the urban-suburban setting. This practicum has analyzed this type of land use conflict between the local residents of Rockwood Municipality, Manitoba and the quarry industry, and has estimated the relocation costs at selected deposits near Winnipeg. In June, 1979, Clean Environment Commission public hearings, under the authority of the Clean Environment Act, were held to prescribe limits on discharge of contaminants into the environment from crushed stone quarries located in Rockwood Municipality. As a result of these hearings, emission standards on all phases of production were established on all active quarries in Rockwood Municipality. As land use competition increases and land use conflicts escalate between active quarry operations and residents, there will be an increased pressure for the crushed stone industry to relocate outside the urban setting causing an increased delivered price. If mining is unduly restricted before depletion of the mineral resource due to local environmental concerns, there will be a cost to society. The focus of the research was to estimate the increased delivered price that would occur if the crushed stone industry were forced to relocate at the next closest deposit outside the urban fringe.