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Several studies show that logistics facilities have spread spatially from relatively concentrated clusters in the 1970s to geographically more decentralized patterns away from urban areas. The literature indicates that logistics costs are one of the major influences on changes in distribution structures, or locations and usage of logistics facilities. Quantitative modelling studies that aim to describe or predict these phenomena in relation to logistics costs are lacking, however. This is relevant to design more effective policies concerning spatial development, transport and infrastructure investments as well as for understanding environmental consequences of freight transport. The objective of this paper is to gain an understanding of the responsiveness of spatial logistics patterns to changes in these costs, using a quantitative model that links production and consumption points via distribution centers. The model is estimated to reproduce observed use of logistics facilities as well as related transport flows, for the case of the Netherlands. We apply the model to estimate the impacts of a number of scenarios on the spatial spreading of regional distribution activity, interregional vehicle movements and commodity flows. We estimate new cost elasticities, of the demand for trade and transport together, as well as specifically for the demand for the distribution facility services. The relatively low cost elasticity of transport services and high cost elasticity for the distribution services provide new insights for policy makers, relevant to understand the possible impacts of their policies on land use and freight flows.
This report has been established within the Flexiheat project. Flexiheat has focused on increasing flexibility in district heating systems. The intelligent district heating network is a dynamic network: an open network where different waste heat and renewable energy sources are connected, that has multiple producers and groups of consumers and facilitates the connection between different energy infrastructures (gas, heat and electricity). Eventually this will lead to an optimal deployment of the available heat sources and an increased cost-efficiency of district heating. Flexiheat aims to develop new concepts for these intelligent, flexible district heating networks. One of the strategies is to allow third party access to the network. A smart control system is developed to manage the heat flows across the network. This system makes use of dynamic pricing. In this exploration the concept of third party access in relation to the Flexiheat project will be discussed. The development of new business and price models based on the Flexiheat approach has led to an analysis of possible alternative price models for consumers.
This paper reviews how economic modelling provides a deeper understanding of drug markets. The exercise focuses on ‘soft drugs’ (cannabinoids) in the Netherlands and outlines the effects of prohibition and legalisation. The purpose is to present an overview of analytical tools to non-economists. Based on a basic supply and demand framework the impact of enforcement, externalities, producer incentives and demand elasticity are highlighted. Results indicate that social welfare is maximized under legalisation given limited externalities associated with consumption and price inelastic demand. We recommend a liberalized soft drugs market that requires inter alia taxation, complemented with various health measures like quality controls and public campaigns. The Dutch case is exemplary, as this economic perspective offers universal building blocks relevant to the legalisation debate in other countries, and potentially to other substances