Regensburg 2007 – scientific programme

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AKSOE: Arbeitskreis Physik sozio-ökonomischer Systeme

AKSOE 4: Poster Session (posters are expected to be displayed the full day (9:00-18:00)

AKSOE 4.10: Poster

Monday, March 26, 2007, 16:30–18:00, Poster D

Dynamics of Spatial Networks with Application to Gas and Forest Industries — •Yuri Yegorov — Institute for Advanced Studies, Stumpergasse 56, A-1060, Vienna, Austria

For the industries that deal with products that have low price/weight ratio spatial structure is important, and space-less economic models can be misleading. Both exploitation of land-located natural resource and distribution of product across consumers have this property. Here a mathematical model is proposed for the growth of spatial networks. It can be equally applied for forest exploitation over large territory and for building gas distribution networks after construction of a pipeline. The use of forest in Russia is not sustainable. Large regions near country borders and ports have lost its forest, while large areas in Central Siberia are practically not exploited, due to high cost of access and underdevelopment of transport network After liberalization, transportation in Russia became relatively more expensive, and this changed the pattern of forest use. Economic forces drive this production to non-sustainability, and some government control is necessary. If the prices for wood exploitation would become prohibitively expensive when it is scarce (i.e. near the border) and transport subsidies would be given for remote regions, then wood production could grow without deforestation. When a strategic gas pipeline is constructed, gas supply infrastructure around it grows. Consumers shift from other energy to gas changing demand function. The model captures these spatial effects that modify demand function. Here spatial model allows for understanding how investment in supply can lead to demand growth.