Author: Lloyd S. Dixon

Publisher:

Published: 2001

Total Pages: 0

ISBN-13:

This study addresses the economic impact of Transit Mixed Concrete Company's proposed sand and gravel mining project in Soledad Canyon, Los Angeles County, California. The plan calls for mining 56 million tons of sand and gravel over 20 years to supply the local construction aggregate market. In conducting this study, we assume that the mine operates between 2003 and 2022 and analyze how the mine would affect the costs of transporting aggregate, economic profits in the industry, the price of aggregate, and the reserves of aggregate in the greater Los Angeles metropolitan area through 2027. In deciding whether or not to proceed with the Soledad Canyon Mine, policymakers should compare the costs of proceeding with the mine with the benefits. This analysis uses a simulation model developed for this project to addresses the potential benefits namely the reductions in transportation costs and aggregate prices and the increase in aggregate reserves that might result from proceeding with the mine. It does not consider the costs. Potential costs of proceeding with the mine include a decline in property values, an increase in traffic congestion, damage to the environment, and the loss of recreational and scenic areas near the project. The results of this study should be combined with estimates of other benefits and costs to determine whether or not to proceed with the proposed project.