Economic Effects Of Urbanization On Mineral Aggregate Use

The construction mineral aggregates industry--the largest industry on a tonnage basis--is threatened with large shortages in the near future. Ironically, these common minerals which include sand, gravel, and stone are among the most plentiful in the earth's crust. However, as these minerals are low in value and used in large volumes, they are extremely sensitive to transport cost, e.g., a haul of 20 miles doubled the delivered cost of mineral aggregates. Consequently, these minerals must be located close to points of demand to have economic usefulness. But the development of new deposits is virtually impossible near many urban areas for legal, sociological and economic reasons. The spector of unfinished urban transport systems, curtailed residential construction, and a general deterioration of the physical urban plant, looms as a direct consequent of future mineral aggregate shortages in the U. S. metropolitan areas. The shortages of mineral aggregates in the Greater New York Metropolitan Area (G.N.Y.M.A.) are prototypical of the shortages faced by the U. S. Metropolitan areas. This paper presents an economic analysis of the consequences of not considering the broad aspects of conservation economics as a major component of resource management. The needless annual cost for the G.N.Y.M.A. is shown to be $30 million.