Economically Complementary, Ecologically Balanced, On-Shore/Off-Shore Industrial Clustering

Robert Tanenhaus

DOI: 10.2190/3GAW-093K-78WP-HVXB


The paper discusses the benefits of maximizing interindustry cooperation based on input-output analysis. Output is composed of product and waste. Assuming product is fully utilized by the market, maximization occurs when input use is maximized and waste is reduced. By matching industries that use each other's inputs and wastes, the industries reduce private economic and public ecologic costs. The matching reduces and shares input costs, creates products from wastes, and creates a more closed ecologic system with less external effect.

Some industries' ecologic costs are so high that they have investigated off-shore sites, but the economic cost for one industry is usually too great and the ecologic cost may still be too high. However, industrial clustering may reduce these costs enough to make off-shore sites practical.

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