?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4872%2F&rft.title=The+Resource+Economics+of+Environmental+Absorption+Capacity&rft.creator=Hertwich%2C+E.&rft.description=This+paper+uses+an+economic+framework+to+investigate+the+depletion+of+heavy+metal+absorption+capacity+of+soil.+Specifically%2C+the+Hotelling+model+for+the+allocation+of+exhaustible+resources+across+time+is+applied+to+Cadium+deposition+onto+agricultural+soil+in+the+Rhine+basin.+The+Hotelling+model+requires+a+knowledge+of+the+resource+as+well+as+the+demand+function+for+the+resource.+The+resource+of+absorption+capacity+is+limited+because+above+a+certain+Cd+concentration+in+soil+agriculture+is+not+allowed%3B+accumulation+of+Cd+above+this+maximum+acceptable+soil+concentration+is+not+allowed.+The+demand+function+for+absorption+capacity+corresponds+to+the+cost+function+of+avoiding+deposition+of+heavy+metals.+According+to+the+Hotelling+model+calculations%2C+0.2+DM+should+be+spent+to+avoid+the+deposition+of+1+kg+Cd+at+a+discount+rate+of+5%25+and+600+DM+at+1+%25.+The+optimal+level+of+Cd+control+expenditure+increases+at+the+discount+rate.+The+paper+also+presents+a+modified+Hotelling+model+that+takes+the+replenishment+of+the+resource+by+removal+of+heavy+metals+from+the+soil+(leaching+and+plant+uptake)+into+account.+Using+a+simple+donor-controlled+outflow+model+of+Cd+behavior+in+soil+and+a+residence+time+of+1000+years%2C+the+optimal+initial+expenditure+level+for+Cd+control+in+the+Rhine+basin+is+determined+to+be+0.0006+DM%2Fkg+(3%25+discount+rate).+For+the+Katowice+district%2C+the+optimal+level+is+20+DM%2Fkg.+A+net+input+of+Cd+into+the+soil+of+the+Rhine+basin+is+allowed+for+400+years+in+the+Rhine+basin+and+for+200+years+in+Katowice.+This+paper+finds+the+modified+Hotelling+model+to+be+a+useful+heuristic+for+understanding+the+time+dimension+of+absorption+capacity%3B+specific+recommendations+cannot+be+derived%2C+however%2C+because+they+depend+on+tenuous+inputs+such+as+the+cost+curve+for+pollution+control%2C+the+discount+rate%2C+and+the+maximum+acceptable+soil+concentration.&rft.publisher=WP-96-156&rft.date=1996-12&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4872%2F1%2FWP-96-156.pdf&rft.identifier=++Hertwich%2C+E.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F1321.html%3E++(1996).++The+Resource+Economics+of+Environmental+Absorption+Capacity.+++IIASA+Working+Paper.+IIASA%2C+Laxenburg%2C+Austria%3A+WP-96-156+++++