v>EPA
United States
Environmental Protection
Agency
Municipal Environmental Research
Laboratory
Cincinnati OH 45268
EPA-600/5-7 8-009
July 1978
Research and Development
Tires: Decreasing
Solid Wastes and
Manufacturing
Throughput; Markets,
Profits, and
Resource Recovery
-------
RESEARCH REPORTING SERIES
Research reports of the Office of Research and Development. U.S. Environmental
Protection Agency, have been grouped into nine series. These nine broad cate-
gories were established to facilitate further development and application of en-
vironmental technology. Elimination of traditional grouping was consciously
planned to foster technology transfer and a maximum interface in related fields.
The nine series are.
1. Environmental Health Effects Research
2. Environmental Protection Technology
3. Ecological Research
4. Environmental Monitoring
5. Socioeconomic Environmental Studies
6. Scientific and Technical Assessment Reports (STAR)
7. Interagency Energy-Environment Research and Development
8. "Special" Reports
9. Miscellaneous Reports
This report has been assigned to the SOCIOECONOMIC ENVIRONMENTAL
STUDIES series. This series includes research on environmental management,
economic analysis, ecological impacts, comprehensive planning and fore-
casting, and analysis methodologies. Included are tools for determining varying
impacts of alternative policies; analyses of environmental planning techniques
at the regional, state, and local levels; and approaches to measuring environ-
mental quality perceptions, as wel! as analysis of ecological and economic im-
pacts of environmental protection measures. Such topics as urban form, industrial
mix, growth policies, control, and organizational structure are discussed in terms
of optimal environmental performance. These interdisciplinary studies and sys-
tems analyses are presented in forms varying from quantitative relational analyses
to management and policy-oriented reports.
This document is available to the public through the National Technical Informa-
tion Service, Springfield, Virginia 22161.
-------
EPA-600/5-78-009
July 1978
TIRES:
DECREASING SOLID WASTES AND MANUFACTURING THROUGHPUT
Markets, Profits, and Resource Recovery
by
Robert R. Hesterman
Department of Management
School of Business and Public Administration
California State University Sacramento
Sacramento, California 95819
Contract No. 68-03-2401
Project Officer
Haynes C. Goddard
Solid and Hazardous Waste Research Division
Municipal Environmental Research Laboratory
Cincinnati, Ohio 45268
MUNICIPAL ENVIRONMENTAL RESEARCH LABORATORY
OFFICE OF RESEARCH AND DEVELOPMENT
U.S. ENVIRONMENTAL PROTECTION AGENCY
CINCINNATI, OHIO 45268
—
i>
LJ
b
-------
DISCLAIMER
This report has been reviewed by the Municipal Environmental Research
Laboratory U. S. Environmental Protection Agency, and approved for publica-
tion. Approval does not signify that the contents necessarily reflect the
views and policies of the U. 5. Environmental Protection Agency, nor does
Risiuion of trade names or commercial products constitute endorsement or
recommendation for use.
11
-------
FOREWORD
The Environmental Protection Agency was created because of increasing
public and government concern about the dangers of pollution to the health
and welfare of the American people. Noxious air, foul water, and spoiled
land are tragic testimony to the deterioration of our natural environment.
The complexity of that environment and the interplay between its components
require a concentrated and integrated attack on the problem.
Research and development is that necessary first step in problem solution
and it involves defining the problem, measuring its impact, and searching for
solutions. The Municipal Environmental Research Laboratory develops new and
improved technology and systems for the prevention, treatment, and management
of wastewater and solid and hazardous waste pollutant discharges from municipal
and community sources, for the preservation and treatment of public drinking
water supplies, and to minimize the adverse economic, social, health, and
aesthetic effects of pollution. This publication is one of the products of
that research; a most vital communications link between the researcher and the
user community.
Two hundred million solid waste passenger car tires are generated each
year in the United States; no adequate large scale systems for processing
these tires are in operation, although many have been proposed, and some
implemented on a small scale. Tire solid waste decreasing systems including
(1) product redesign for longer life and (2) retreading have also been pro-
posed. This report investigates the costs and benefits of tire resource
recovery methods, retreading, and a tire design change to a longer service
life of 100,000 miles (160,900 kilometers) in an effort to determine the
best system for the management of solid waste tires.
Francis Mayo
Director
Municipal Environmental
Research Laboratory
-------
ABSTRACT
This report studies the economic and social costs and benefits of a pas-
senger car tire design service life of 100,000 miles (160,900 kilometers),
retreading, and four resource recovery methods for solid waste tires:
(1) cryogenics with recovered rubber use, mixed with asphalt, in repairing
roads; (2) incineration of whole tires; (3) pyrolysis; and (4) landfill.
Symbolic models of tire costs and benefits are presented along with a
computer program for their calculation. A shift in new tire design service
life is recommended., along with increased retreading and with solid waste
tire processing by cryogenics for use as tire asphalt rubber in repairing
roads. Three methods of producing 100,000 mile tires are proposed; one, the
TTW 100,000 mile tire, is discussed in some detail.
This report was submitted in fulfillment of Contract Number 68-03-2401
by the California State University Sacramento (CSUS) under the sponsorship of
the U. S. Environmental Protection Agency. This report covers a period from
April 1976 to August 1977, and work was completed as of August 31, 1977.
IV
-------
CONTENTS
Foreword -j-j-j
Abstract iv
Figures vii
Tables !.'.'.! viii
Acknowledgement ix
1. Naste Tires: The Problem and Strategies for Solution 1
Profits and solid waste nanagement alternatives 3
Large scale profit and solid waste management strategies. . . 5
Small scale showcase tire solid waste systems 6
Priority of tires study 7
Previous studies 7
2. Tire Solid Wasta Cost Benefit Analysis Q
Scope of the study, benefit and cost definitions 8
Benefits definitions 10
Product value benefits 10
Decreased waste benefits 10
Consumer and public cost avoided benefits 11
Corporate tax transfer benefits 11
Physical environment aesthetics benefits 11
Conservation benefits 11
Costs definitions 11
Tire collection costs 11
Production, processing, and solid waste costs ... 12
Administrative and marketing costs 12
Corporate profits tax costs 12
Job gains and losses 12
Reference system: 40,000 mile tires 12!
Different viewpoints on value: value definitions 13
Planning horizon and cost benefit rates 14
Data values and parametric analyses 16
3. The Management of Solid Waste Passenger Car Tires:
Analysis and Conclusions 17
Summary of conclusions 17
Values, costs, and benefits 18
100,000 mile tires 21
Technical feasibility 21
Production costs 22
Sales price 22
Marketability 23
Disadvantages 24
Business costs and benefits 26
Social costs and benefits 27
-------
CONTENTS (Continued)
Retreading 34
Advantages and disadvantages 34
Retreading: an interim solution? 37
A retreaders viewpoint on value 38
Retreading: social value 38
Safety of retreaded tires 39
The tire size/shape limit 39
The limit on suitable carcasses 40
Quality control for retreads 40
Marketing retreads 40
Tire asphalt rubber 41
Costs and benefits 41
Parametric analysis: tire asphalt rubber 43
Other resource recovery alternatives 43
Limits on 100,000 mile tires, retreading, and
tire asphalt rubber 47
References 48
Bibliography 51
Appendices
A. Benefits and Costs Symbolic Definitions 73
3. The Tirec Program 91
C. Data Inputs 108
D. Road Repairs: Tire Asphalt Rubber Mix (B-n) Benefits m
E. 100,000 Mile Tires: Profits, Product Service Life,
and Solid Haste Management 120
Glossary of Symbols and Definitions 146
VI
-------
FIGURES
Number page
1 The tires industry system 2
2 Annual solid waste car tires 1962 to 1972 and forecast 4
3 Production cost versus values: 100.,000 mile tires 30
4 100,000 mile tires: costs and benefits versus production costs . . 31
5 100,000 mile tire price versus values and benefits 3?.
6 Discount rate versus 100,000 mile tire values 33
7 Tire asphalt rubber value versus conventional road
repair frequency 44
8 Tire asphalt rubber value versus conventional road
repair costs 4b
9 Tire asphalt rubber: social value versus cost 46
E-l Tire service life versus treadwear 127
-------
TABLES
Number Page
1 Benefits and Costs Framework: Tires System 9
2 Tire System Benefits and Costs Over 20 Years 15
3 Business and Social Values Per Waste Tire 18
4 Benefits and Costs Per Standard Tire or
Per Four Years 19
5 Gross Profits of Five 40,000 Mile Tires 23
6 Manufacturers Profits: 100,000 Mile Tires 26
7 Social Values (LEGV): 100,000 Mile Tires 28
8 The Benefits and Costs of Retreading 37
9 Tire Asphalt Rubber Benefits and Costs 42
A-l Product Values: Symbolic Definitions 75
A-2 Waste Decreasing Models 77
A-3 Consumer Cost Avoided Models 78
A-4 Consumer Cost Avoided Benefits Models 80
A-5 Corporate Profits Tax Benefit Models 81
A-6 Quality of the Physical Environment Models 82
A-7 Conservation of Materials Benefits 84
A-8 Inventory, Handling, Shredding, and Transportation Costs ... 86
A-9 Recovery, Solid Waste, and Production Processing Costs .... 87
A-10 Administration and Marketing Cost Models 88
A-ll Job Gains and Losses Models 89
B-l Tirec Alternatives Identification 91
D-1 Road Repair and Reconstruction Model Costs 114
D-2 California Road Repair Costs 117
D-3 Road Repair Treatments Versus Reflective Cracking 118
E-l 1977 Tread Rubber Depths 125
E-2 U. S. Passenger Tire Sales (Shipments) in Millions 132
E-3 Simulated Waste Tires and New Replacement Tire
Sales in 100,000s: 1960 Through 1990 134
E-4 Estimated Passenger Tire Sales Data 1981-1990 136
E-5 Costs and Prices of Steel Belted Radial Passenger Tires .... 137
E-6 Percent of Per Tire Manufacturing Costs, By Category 138
E-7 SBR Per Tire Production Costs By Category 138
E-8 Gross Profits of Five 40,000 Mile Tires 143
vm
-------
ACKNOWLEDGEMENT
This report is based upon the author's 1974 doctoral dissertation,
The Management of Waste Passenger Car Tires; it was developed due to the
interest of Dr. Haynes Goddard in the proper management of solid waste
tires.
Several persons contributed time, knowledge, and effort to this
work which have made it substantially better. Dr. Goddard reviewed both
the dissertation and this work and offered valuable comments. Mr. F. Cecil
Brenner of the National Highway Traffic Safety Administration took the
time to respond in detail to questions on the 100,000-mile tire.
Mr. R. W. Eckart of Mohawk Rubber Company and Mr. M. J. King of Oliver
Tire and Rubber Company both assisted with questions on tread rubber
and thickness. Mr. W. W. Curtiss, Director of Tire Development Research,
Goodyear Companymet with the author on two occasions to assist with
questions relating to the research. Many others have provided similar
assistance.
The California Almond Grower's Association provided the computer
time for the running of the TIREC program. Mr. Stanley Deame, Computer
Center Director, Walt McDaniel, and an outstanding crew of programmers
and operators were most considerate and helpful in supporting this work.
Harold Schmidt of the Federal Highway Administration's Sacramento
Office provided insight and information on the tire asphalt rubber
process for repairing roads. Dan Stachura of the California Department
of Highways, District 8 (Riverside), assisted in arranging an inspection
of the process as it was being applied.
Dr. Robert Snyder, Vice President of Tire Technology for Uniroyal
Company, provided insight into the tire industry's viewpoint on 100,000
mile tires.
-------
SECTION 1
WASTE TIRES: THE PROBLEM AND STRATEGIES FOR SOLUTION
Tires play a significant part in the lives of virtually everyone. In
manufacture they create jobs and useful products; in use they are always as
close to us as the wheels beneath our automobiles, vital to occupation, fam-
ily activities, and safety, in tire retreading, splitting, and rubber re-
claiming, worn tire carcasses provide the raw material for secondary manu-
facture of recycled tires, door mats, and used rubber. The jobs and products
of the tire industry comprise a significant segment of the national economic
system. Over two hundred million new tires are sold each year in the United
States; Americans spend about nine billion dollars per year to purchase tires.
The quantitative significance of tires is personally evident when one reflects
upon how many tires he or she sees each day, a number probably in the hun-
dreds, and when one considers that a set of four replacement tires costs
today, on the average, $170. Obviously, the strategic management of the tires
production, distribution, and consumption system involves variables of nation-
al and personal economic significance.
Unfortunately, tires wear out, and - although some small amounts are
retreaded, split, reclaimed, and perhaps sent to relatively small scale pro-
jects such as artificial reefs - seventy percent of the waste tires generated
each year require waste collection, processing, and solid waste disposal.
Waste tires can affect society through: solid waste handling costs, litter,
and scenic blight, and through the rapid use (rather than conservative use)
of our limited natural resources. These undesirable aspects of tires shadow
the benefits of the jobs, products, and profits created by the industry.
The system of tire manufacturing, consumption, and wastes affects is
diagrammed in Figure 1. The components of this system are interdependent: a
change in management policy with respect to one component will change the
status of one or more other components. A change in new tire design towards
the use of higher operating pressures, for example, will increase the number
of tires able to be retreaded each year. Any one component segment of the
system might be managed with little regard for costs imposed upon the other
segments.
The focus of this study is upon the solid waste tires segment of the
tires system. We examine and measure a broad range of costs and benefits,
however, including profits, costs to consumers, and jobs affects. The broad
scope of the study, in lieu of myopic environmental management, is appropri-
ate if the tires system is to be managed with equal respect allotted to each
-------
CONSUMER
USE OF
TIRES
QUANTITY OF
NEW TIRES
PRODUCED
PER YEAR
\
QUANTITY OF
RETREADED
TIRES PRODUCED
PER YEAR
QUANTITY OF
TIRE WASTES
PER YEAR
QUANTITY OF
RECOVERED TIRES
PER YEAR
ANNUAL
PRODUCT
VALUE OF
THE TIRE
INDUSTRY
*J
SOCIETAL
WELFARE
ENVIRONMENTAL
QUALITY
USE OF THE
PHYSICAL
ENVIRONMENT
Figure 1. The Tires Industry System.
Note: Arrows indicate interaction between system components; plus and minus
signs indicate increases and decreases in the attributes of the system
components; minus signs imply that the relationship between the attributes is
inverse. For example: as the quantity of new tires increases, the solid
waste quantity increases; as the tire solid waste quantity increases, the use
of the physical environment as a solid waste absorbing sink increases, and
environmental quality decreases; as environmental quality decreases societal
welfare decreases. On the other hand, as the quantity of new tires produced
increases the product value of the tire industry increases and this can be
said to increase societal welfare. Obviously, it is important to include a
wide scope of costs and benefits in a study on tires management.
-------
segment.
Over two hundred minion solid waste tires are generated each year in
the United States (See Figure 2). In this study we provide information and
insight concerning the best set of alternatives for management of these tires.
The alternatives discussed can be highly profitable for selected firms in the
tire industry. They can provide the public with significant cost savings.
They are, however, unconventional, and will require changes in management
attitudes before acceptance.
This report is intended for several audiences: (1) for federal legis-
lators and policymakers and their staffs; (2) for strategic decisionmakers in
tire manufacturing, retreading, and solid waste tire processing; and (3) for
students interested in an interdisciplinary case which synthesizes and quan-
titatively evaluates public and private economic, social, technical, and
environmental costs and benefits of waste reduction (Source Reduction), re-
cycling, and resource recovery alternatives. The technical feasibility,
marketing, and economic analyses of the waste reduction alternative, the
100,000 mile tire, should be of special interest to all intended readers.*
PROFITS AND SOLID WASTE MANAGEMENT ALTERNATIVES
A specific focus of our work is Source Reduction; we examine the meaning
and implementation of the solid waste decreasing Source Reduction alternative
for tires. Both solid waste quantities and new product quantities are deter-
mined by manufacturers' product design service lives. We find that a 100,000
mile design tire service life can provide significantly improved total pro-
fits for a number of tire manufacturers and, at the same time, can reduce
solid waste tires by sixty to seventy-five percent. 100,000 mile tires can
decrease the costs of tire services for consumers, they can conserve re-
sources, and can preserve (not use for disposal) the physical environment.
This can be achieved with the same total product value for the tire industry
as might normally be expected in coming years; 100,000 mile tires can create
additional manufacturing jobs for a few years. Those manufacturers who cap-
ture the market can obtain fantastic profits. The problem with this altern-
ative is, as with the current shift to steel belted radial tires, which man-
ufacturers will realize these profits? This is an income distribution problem.
Also of concern is how and when will those, displaced by change, adapt.
Another focus of the study is upon retreading. Retreading is recycling.
Retreading provides the same profits, solid waste reduction, consumer cost,
conservation, and environmental quality benefits as 100,000 mile tires. In-
creased retreading creates jobs. Yet retreading has been limited by manufact-
uring practices and by public perceptions of retreaded tires. We demonstrate,
and measure, the prominent potential of retreading as a tire systems manage-
ment alternative.
*100,000 miles is equal to 160,935 Kilometers. Conventional 40,000 mile steel
belted radial tires are 64,374 Kilometer tires. The 100,000 and 40,000 mile
labels are used, in this report, as names rather than as numerical values.
The Kilometric equivalents are repeated whenever the actual measurement of
length is of importance.
-------
200
175
o
3
in
OJ
(D
to
(D
-s
o>
O)
-s
150
125
100
75
99.2
O)
-5
II
X
CTl
ffl
CO
VO
CO
O
Figure 2. Annual solid waste car tires 1962 to 1972 and forecast.
-------
The longer service life design and retreading alternatives lack the pro-
motion and glamour of the tire resource recovery technologies. Many persons
do not regard these as serious solid waste management alternatives. Increased
service life and retreading are feasible, important, and viable waste manage-
ment alternatives, however. It is technically feasible, today, to manufacture
passenger car tires that will last, on the average, 100,000 miles (160,935
Kilometers). Retreading can be carried out in such a quality controlled fash-
ion so as to make retreaded tires desirable to the public. Both of these
waste decreasing alternatives can be considered akin to providing solid waste
disposal capacity through avoiding the need for it. The waste reducing man-
agement strategies are alternatives to resource recovery.
This is not a generally accepted conclusion and, accordingly, we attempt
to demonstrate this relationship in this study. If we decrease the quantity
of solid waste tires generated each year by seventy-five percent then we will
need seventy-five percent less investment and annual operating costs for
Pyrolysis, incineration, or other engineering oriented tire resource recovery
facilities. The investment costs avoided through the use of 100,000 mile
tires will amount to hundreds of millions of dollars; the operating costs
avoided through this Source Reduction alternative will, in steady state,
amount to at least 150 million dollars annually. Solid waste decreasing
alternatives can, in this time of increasing inflation and cost consciousness,
be of some economic and political value.
The Source Reduction and recycling methods, on the other hand, do not
represent, by themselves, complete solutions; each year-some quantity of tire
solid waste remains. Consequently, at least one waste tire resource recovery
method is needed along with Source Reduction and retreading. Resource recov-
ery alternatives for solid waste tires have been studied for a period of over
five years. These include Pyrolysis, incineration with heat recovery, and
mixing scrap rubber with asphalt for use in repairing roads. We examine the
relative economics of these processes in this study.
A final focus of this report is upon the desirability of tire resource
recovery, recycling, and Source Reduction alternatives when conservation,
environmental quality, and general public values are taken into consideration.
We examine the economic worth of conservation and environmental quality.
LARGE SCALE PROFIT AND SOLID WASTE MANAGEMENT STRATEGIES
We study four major recovery alternatives for handling the tire solid
waste stream in addition to the two waste decreasing alternatives:
1. Road Repairs - In this process scrap tires are processed by Cryogenics,
shredding, and classification to obtain vulcanized rubber particles
which can be mixed with asphalt for use in repairing roads. A thin
layer of asphalt rubber prevents reflection cracking and prevents the
need for some road repairs.
2. Landfill - This process involves shredding tires and burying the shreds
-------
in the earth. Tires produce an inert non-polluting fill material. The
tire rubber land-filled can be mined at a later date.
3. Incineration with energy recovery- Incinerators specially designed to
handle whole tires are now in operation. Tires have a heat value
similar to coal and exhibit promise in heat recovery and use as energy.
4. Pyrolysis/Destructive Distillation- In this process tires are subjected
to heat in the absence of oxygen; they break down into oils, chars, and
gasses which can be marketable.
5. Retreading- Worn tire carcasses, in good condition, are buffed to be
round and uniform, and a new tread rubber is applied and cured. This
enables the use of the carcass for a second life time and avoids tire
solid wastes.
6. 100,000 mile tires- Passenger car tires that will last, on the average
under normal conditions, 100,000 miles can be manufactured by varying
operating pressure, tire size and width, and the quality of the tread
rubber used in tire manufacture.
There are, in addition to these, other tire waste management alterna-
tives. The alternatives chosen were selected because they seemed to promise
large scale solutions rather than showcase demonstrations on a small scale.
SMALL SCALE SHOWCASE TIRE SOLID WASTE SYSTEMS
The manufacture of artificial ocean reefs is one current showcase
solution for waste tires. The idea is good, the technology is simple, and
reefs provide significant benefits for fish and for fishermen. The demand
for tire reefs , however, is not likely to require even five million worn
tires per year, while two hundred million solid waste passenger car tires
are generated each year. From the perspective of scale then, artificial
reefs are not a solution to the tire waste problem.
Many smallscale alternatives for handling waste tires exist. It seems
probable that several of these will be important, in small scale, in tire
waste management. These alternatives include:
- Artificial reefs
- Tire splitting and manufacture of doormats, gaskets, etc.
- Grinding for use as a soil conditioner
- Re-use intact for swings, bumpers for docks, etc.
- Shredding and manufacture of resilient surfacing
- Protein manufacture
- Chemical modification
Still a solution is needed for handling the preponderant portion of the
annual solid waste tires stream which will not be processed by the combined
capacities of these relatively small scale alternatives.
-------
PRIORITY OF TIRES STUDY
The focus of our study upon tires seems to be so highly specialized as
to be of little interest or importance as compared to the many problems of
business and society. Quite the opposite is true. The consequences of im-
plementation of ideas presented here impact on every consumer, on the tire
industry, and on the physical environment. These consequences, no matter
what the alternatives chosen, will involve millions to billions of dollars
to process solid waste tires. The conservation aspects of tires management
are significant: Each tire, in manufacture, consumes about seven gallons of
oil. Four replacement tires cost the consumer $170 to $320 every few years.
Tires should be an area of priority concern for government planners. Tire
service life and retreading should be areas of increased profit oriented
study for manufacturers.
PREVIOUS STUDIES
There has been quite a bit of study on solid waste tires carried out in
recent years throughout the world; an extensive bibliography on solid waste
tires, tire resource recovery, retreading, tire production, tire profits, and
tire markets is included with this report. This study and its predecessor,
however, are unique in that they combine all of the above listed factors,
in comparable terms, and define and provide quantitative measures of the
costs and benefits of various alternatives; these measures include measure-
ment of environmental quality, conservation, and effects on employment.
-------
SECTION 2
TIRE SOLID WASTE COST BENEFIT ANALYSIS
Choice from among competing solid waste management strategies should,
to the extent possible, be based upon quantitative analysis of the costs and
benefits associated with the strategies. The alternative is satisficing,
judgemental decision based upon incomplete information.
Some guidelines for Cost/Benefit Analysis are:
1. Establish a framework matrix of cost and benefit
categories, and inductively search the matrix for
potential costs and benefits with respect to each
alternative studied.
2. Specify the system of reference and measure inc-
remental costs and benefits with respect to this
system.
3. Define value. From whose viewpoint are we looking
at value? Which costs and benefits are to be
included in which definition of value?
4. Measure the costs and benefits over a common time
period so that the numbers are comparable as rates.
Cost/Benefits Analysis usually enumerates the costs and benefits of each
alternative, establishes the periodic timing of the costs and benefits, and
calculates the net present value of the periodic costs and benefits. Our
Cost/Benefit Analysis is slightly different in that we measure cost and
benefit rates over a common short time period. Our present value calculations
are slightly different from the conventional. We examine, below, the imple-
mentation of our guidelines for Cost/Benefit Analysis in the management of the
tires system.
SCOPE OF THE STUDY: BENEFIT AND COST DEFINITIONS
The cost and benefit categories that we studied for tires are given in
Table 1. This Table identifies the broad scope of the study and provides a
framework for the analysis. Brief definitions of the costs and benefits are
given in the Table; more detailed definitions are given in the paragraphs
that follow. Explicit symbolic definitions are given in Appendix A. We found
values for forty-eight of the sixty benefit and cost rates indicated in Table
one. All costs and benefits were measured as incremental effects per tire
per four years.
-------
TABLE 1. BENEFITS AND COSTS FRAMEWORK: TIRES SYSTEM.
f-.anagement Alt.
alternative #
Resource recovery
Road repairs 1
Landfill 2
Incin. energy 3
Pyrolysis 4
Recycl ing
Retreading 5
Source reduction
100,000 Mile 6
Note: a negative
benefit will also be
treated as a cost,
and a negative cost
will be treated as
a benefit.
1
Bn
B
21
B
31
B41
3
51
B
61
Benef i t
2
B
12
B
22
B
32
V
B
52
B
62
categories
3
B,3
B
23
B
33
843
D
o
53
B
63
(j)
4
B!4
B
24
B
34
644
B
54
B
64
5
B,5
B
25
B
35
B
45
B
55
B
65
Benefit definitions
-o
Q- -5
fD o
O Q.
-5 C
ro o
Cu rt
to
ro <
Q. Cu
S c"
CU O
CO
rt cu
fD 3
Q-
— ' O
-•• o
0 3
CO
0 C=
0 3
CO 0)
rt -5
(/i
Cu
CU 3
< CL
O
Q- c:
fD GT
0. 1
rt O
OJ O
X -i
T3
«-t O
Cu cu
3 rt
to fD
~h
fD ~O
1 1
co o
-h
CO
~3 "^
fb zr
3 ^
cu o
rt> cu
to — i
3" ro
fD 3
rt <
o -s
to o
I
o
o
3 3
ro -i
-5 <
_i. cu
Cu rt
— i — r.
CO O
O
-h
1
cn
C
21
C
31
C41
C
51
C
61
cu —4
3 ->•
0- -S
ro
to
zr o
-s o
ro — i
Q- — i
Q- ro
-•• o
3 rt
o
3
Cost
2
C12
C
22
C
32
C42
C
52
C
62
Cost
r> -a
ro -*;
to O
co o_
-•• c:
£30
Cu CO rt
rt cu o
ro 3 3
Q-o
o -5
— • 0
— '• 1
CL
categories
3
C,3
C
23
C
33
C43
C
53
C
63
(k)
4
°14
C
24
C
34
C44
C
54
C
64
5
C15
C
25
C
35
C
45
C
55
C
65
definitions
Cu 3>
3 O.
Cu 3
3 3
"7^* C*"
ro -5
rt cu
rs ->•
CO <
(_)
o
-5
o
-5
rt CU
Cu r!-
x ro
ro
CO TD
-s
o
-••
to
r .
Q
QT
'CO
o cy
CO — '.
co rs
fD co
CO
Cu
rj
a.
-------
A narrative description of each benefit category definition, detailed;
when appropriate, for each of the six alternatives studied is provided below.
Product Value Benefits
fcoau I7.epairs-the value of rubber recovered from a solid waste tire when
sold in uags for use mixed as asphalt rubber; the value of recovered steel was
added to this.
Landfill-the sales value for otherwise unusable land which has been re-
covered by landfill ing with shredded tfres.
Incineration/tnergy-the sales revenues of the energy recovered per tire
as expressed in British Thermal Units and related to conventional fuels.
Pyrolysis-the sales revenues per tire from the Carbon, oil, and steel
recovered.
Retreading-the difference between the sales revenues on a retreaded tire
and the sales revenues on a new tire for which the retread is a substitute,
the salvage value of the worn carcass after its retreaded life was added to
the revenue difference. The salvage value was valued as in Road Repairs
above. An alternative definition was also studied, this modified definition
eliminated the revenues of the new tire; only the revenues obtained from the
retreaded tire., plus the salvage value, were treated as a benefit. The first
definition is appropriate when viewing the entire tire industry as an inte-
grated whole:, the second is appropriate when the business merits of retreading
are taken alone from an independent retreader's viewpoint.
100,000 iiile Tires-the discounted sales revenues from two 100,000 mile
tires (one sold at present and the other at year ten) plus the discounted sal-
vage values of the two tires (as in Road Repairs above); from this is sub-
tracted the discounted sales revenues of the five current 40,000 mile worn
carcasses replaced by the 100,000 mile tires and the discounted sales revenues
from the rubber and steel salvaged from the five solid waste tires processed
for Road Repair. The sum of these affects is multiplied by a fraction repre-
senting the ratio of the planning period of the study (4 Years in this study)
to the number of years included in the comparison of the 100,000 and 40,000
mile tires (20 Years in this study). This converts the quantity to be a rate
per four years. Finally, the result of the calculations is multiplied times
a term which adds the average interest earnable or able to be lost by this
tradeoff each four years.
Decreased Waste Benefits
The landfill and administrative costs avoided by resource recovery were
included as benefits for these alternatives. The worn tire storage, grading,
10
-------
batcii collection, haul, handling, chopping, landfill, and administrative
costs avoided by recycling and by Source Reduction are benefits.
Consumer and Public Cost Avoided Benefits
The consumer costs avoided include cost savings obtainable by tire users
with retreaded tires as opposed to new tires, and the cost savings obtainable
with lOCKOOO Nile tires as opposed to current steel belted radials. The lat-
ter, of course, is dependent upon the costs and prices of 100,000 mile tires.
The public costs avoided benefits are peculiar to the Road Repair altern-
ative. Tire Asphalt Rubber road repairs enable public highway agencies to re-
pair roads less frequently; Asphalt Rubber avoids some road repairs completely
thus saving money. This money could be invested to earn interest. The timing
of these benefits is such that they must be calculated over a relatively long
period of time, as with the 100,000 mile tire benefits. Consequently these
benefits have to be adjusted to be a rate per four years so as to be compar-
able to the resource recovery alternatives.
Corporate Tax Transfer Benefits
The corporate taxes paid by profitable recovery, recycling, and 100,000
mile tire operations are available to society for whatever beneficial use
they may be put to.
Physical Environment Aesthetics Benefits
Resource recovery, retreading, and 1005000 mile tires avoid the use of
tiie land as a disposal sink; they preserve and conserve the physical environ-
ment. These benefits can be conservatively valued at the cost value of
properly disposing of tires by sanitary landfill.
Conservation benefits
Retreaded and 100,000 mile tires get more use out of the carcass of the
tire; they require fewer carcasses per unit of time, and this conserves mat-
erial resources and energy. Tire incineration conserves on the use of energy
from conventional sources.
Costs Definitions
A narrative description of each cost category definition, detailed, when
appropriate, for each of the six alternatives studied, is provided below.
Tire Collection Costs
Horn tires must be stored, handled, graded, shredded, collected and
hauled; each of these operations involves some costs. He aggregate these
as, "Collection" costs.
11
-------
Production, Processing, and Solid Waste Costs
These costs include investment and overhead cost allocations together
with the operational costs of labor, energy, and materials for each process.
For 100,000 mile tires incremental production costs with respect to the cost
of production of a 40,000 mile steel belted radial tire are system costs.
For retreading, the difference in production costs for a new and a retread
tire are included as negative costs. The solid waste tires disposal costs
for the portions of the solid waste stream that remain under the waste de-
creasing alternative are included in this cost category.
Administrative and Marketing Costs
The resource recovery and recycling strategies involve additional
administrative and marketing cost; the products produced must be managed.
100,000 mile tires, on the contrary, decrease production and sales through-
put and, consequently, decrease administrative and marketing costs. A
negative cost for 100,000 mile tires, a benefit in reality, accrues in
this category.
Corporate Profits Tax Costs
When the recovery, recycling, and 100,000 mile tire operations are run
on a profitable basis, they are accountable for corporate profits taxes;
these are costs to the operating or production firms.
Job Gains and Losses
Resource recovery creates jobs; retreading creates jobs at the expense
of new tire production jobs. 100,000 mile tires eliminate jobs after an
initial period of years of higher employment. We valued these at the value
of the increases or decreases in labor or personnel oriented costs associated
with each alternative. We did not include the benefit of increased employ-
ment for 100,000 mile tires in the short run.
REFERENCE SYSTEM: 40,000 MILE TIRES
The system of reference which we used in measuring incremental benefits
and costs was an all steel belted radial, 40,000 mile tire, system. Steel
belted radial tires are the largest selling replacement tire; recently, radial
tires dominated original equipment tire sales for the first time. This dom-
inance will further increase replacement radial tire sales in a few years
since radial tires should not be mixed in use with bias type tires.
The system of reference defines the numeric values of the costs and
benefits. In our analyses, for example, the cost of retreading is the cost
of retreading a steel belted radial tire rather than a belted bias tire.
For the 100,000 mile tire, costs and benefits are measured as increments, or
decrements, as compared to the costs and benefits of producing and disposing
of a current steel belted radial tire. The values assigned to these costs
12
-------
and benefits would be different if we used the belted bias tire as our refer-
ence. Steel belted radial tires are the proper system of reference for the
present and corning years.
DIFFERENT VIEWPOINTS ON VALUE: VALUE DEFINITIONS
Value, tiie sum of tne present value of the benefits of an alternative
minus the present value of the costs, varies according to the dccisionnaker
carrying out the analysis. One measure of value is the standard business
value (S3V) "revenues minus costs". A rate of value (reference Table 1),
according to this definition, would be, for the tire manufacturers as an
industry and for the "itlv1 recovery or reduction alternative:
k=l
For the tire rubber asphalt alternative we studied a modified definition
of value; this definition excluded cryogenics from the process; it included
only tire collection and shredding:
S3V' = iJ_. - C,.
1m 11 11
Private tire manufacturers, dealers, and retreaders within the tire in-
dustry would see value from a different viewpoint than that of the incustry.
From the integrated industry viewpoint, increased retreading is at the ex-
pense of cheap new tire sales; C-^ would include the opportunity costs of the
new tire sale foregone. This viewpoint truly represents some tire dealers.
For those primarily in retreading, however, the objective is to sell as many
retreads as possible. There is no opportunity cost of not selling a new tire
for these retreaders. Similarly, a manufacturer selling 100,000 mile tires
to the automobile companies would not be overly concerned that his increased
profits v/ere at the expense of an independent tire dealer. The increased
profit of 100,000 mile tires goes to one group of persons within the indus-
try; the opportunity costs of new tires not sold accrue to a separate oroup
of persons. From the viewpoint of a single private manufacturer or retreader,
then, our standard bu-siness value definition (reference Table 1) would be
modified, for alternatives five (retreading) and six (100.000 m'le tires), so
as not to include the opportunity cost of a new tire not sold. (In the def-
initions below "rii" stands for "modified".)
= B11m - £ Cik
k=l 1=5,6
A socially or public oriented measure of value (LEGV) might include, for
recovery or reduction alternative "i", all of the benefits and costs of
Table 1.
Cik
k=l
13
- £
-------
This is the decision criterion which is applicable for federal legisla-
tors in their decision making on the desirability of product standards such
as a requirement that new tires be designed for a service life of 100,000
miles (160,935 Kilometers). All of the cost and benefit factors of Table 1
may be of interest to this public decision.
On the other hand, most strategic management changes, not just environ-
mentally oriented changes, have effects of increasing or decreasing employ-
ment levels. Business managers routinely make decisions affecting employment.
Layoffs are certainly enacted whenever business finds them necessary. If this
were not so, no one would ever be displaced from his or her job. All organi-
zations and programs would grow monotonically. Employment effects are a
significant emotional and political issue. We would argue that employment
effects, which are already counted and valued in the product value section
of our benefits (or costs depending upon the sign), should not be double
counted or allowed to override all other considerations.
With this in mind we investigated a second social value definition
•which excludes the employment effects:
5 4
LEGV- = y B- • - Y C-
irn • i j ^-- i k
j=l k-1 1=1, 5
m="ffiodified
These several different measures of value are all important in making
tire system decisions.
PLANNING HORIZON AND COST/BENEFIT RATES
The concept of a planning horizon which is common to all of the six
alternatives studied, and the associated idea of measuring costs and benefits
as rates per unit of time, are demonstrated in Table 2. In a twenty year
period we might use five 40,000 mile steel belted radial tires or two 100,000
mile tires per axle. The benefits and costs of the five 40,000 mile and two
100,000 mile tires are fair in comparison. A twenty year planning horizon
is appropriate to this situation.
As an example benefit calculation, let us look at the difference in
profits between the alternatives shown. The five 40,000 mile tires will ob-
tain, for tire dealers, $212.95 profits each twenty years. The present value
of these periodically timed cash flows, when discounted at a rate of twenty
percent, is $73.85. Alternatively, tire sellers may sell one 100,000 mile
tire at time zero and another at the beginning of year eleven. The gross
profits from the two 100,000 mile tires total $140; the present value of this
profit is $79.45. Consequently, the tire industry can make $5.60 more profit
each twenty years with the 100,000 mile tire alternative. This is a benefit
to the tire industry.
The $5.60 profit per twenty years is a rate of gross profits as compared
to five 40,000 mile tires. We converted it to a rate per one 40,000 mile
14
-------
TABLE 2. TIRE SYSTEM BENEFITS AND COSTS OVER 20 YEARS
Yr
Benefits
40,000 mile tire
Costs
Benefits
100,000 mile tire
Costs
11
13
17
20
Dealers gross
profit $42.59
Dealers gross
profit $42.59
Dealers gross
profit $42.59
Dealers gross
profit $42.59
Dealers gross
profit $43.59
Consumer purchases 1 new tire
@ $65.50; 30 Lbs. materials
used in manufacture
Consumer purchases 1 new tire
G> $65.50;'30 Lbs. materials &
% cu. ft. physical environ-
ment used; $1 solid waste cost
Consumer purchases 1 new tire
@ $65.50; 30 Lbs. materials &
% cu. ft. physical environ-
ment used; $1 solid waste cost
Consumer purchases 1 new tire
@ $65.50; 30 Lbs. materials &
% cu. ft. physical environ-
ment used;$l solid waste cost
Consumer purchases 1 new tire
? $65.50; 30 Lbs. materials &
% cu. ft. physical environ-
ment used;$l solid waste cost
% cu. ft. physical environ-
ment used; $1 solid waste
processing cost
Dealers gross
profits $70
Dealers gross
profits $70
Consumer purchases 1 new tire P $100;
58 Lbs. materials used; incremental
manufacturing costs of approx. $7.50
Consumer purchases 1 new tire @ $100;
58 Lbs. materials used; incremental
manf. costs of approx. $7.50; h cu.
ft. physical environment used & $1
solid waste tire processing cost
% cu. ft. physical environment used;
SI solid waste tire processing cost
All years (YR) listed are timed at the beginning of the
year except for year twenty which is meant to be the end
of the year
-------
tire. This is equivalent to a rate per four years since one 40>000 mile tire
lasts four years at the annual automobile use of 10,000 riles which is char-
acteristic in the United States. Consequently, we shew that a $1.12 benefit
per four years accruas to tire sellers when 100,000 mile tires are sold at
the profit rate shown. The benefits, in this case, represent average dis-
counted profits allocable to a four year period.
The twenty year planning horizon, then, is used only to assist in ob-
taining cost and benefit rates', on occasion we use a ten year horizon for
this purpose. The cost and benefit horizon for this study is four years.
The five costs and benefits listed in Table 1 are calculated, for each of
the six alternatives studied, on a four year basis with respect to a 40,000
mile sclid waste tire. The implication is that the rates determined will
maintain their relationships to each other for some undetermined period
extending into the future.
DATA VALUES AND PARAMETRIC ANALYSES
The data values utilized in this study are estimates. Variation in data
values could lead to changes in the conclusions reached. The value of 100,000
irile tires and of tire asphalt rubber, for example, vary with the interest/
discount rate used in the analysis. >M'« utilize our best data estimates in
our basic analysis and, in recognition of the possible affect, on conclusions
reached, of the data chosen, we investigate variations in prices, costs, the
discount rate, and the interest rate. These parametric analyses, together
with the alternative value definitions discussed above, allow the reader to
understand better the structure of this tire system decision apart from the
specific data utilized. Consequently the study will be of use even to those
who might disagree with specific data values.
Explicit symbolic models representing the cost and benefit rates are
detailed in Appendix A; the computer program, TIREC, used to calculate these
value rates is listed as Appendix B. A study of the size and scope of this
study defies detailed examination but by the most fastidious interested
persons. U'ith this in mind, this and the next chapter summarize end
reference the more detailed work given in the several appendices.
16
-------
SECTION 3
THE MANAGEMENT OF SOLID WASTE PASSENGER CAR TIRES:
ANALYSIS AND CONCLUSIONS
The symbolic definitions of benefits and costs given in Appendix A and
briefly described in Section 2 were programmed for calculation by computer
into a program entitled, "TIREC", which is listed in Appendix B. The data
values which were input to TIREC are listed in Appendix C. TIREC calculates
the sixty cost and benefit value rates of Table 1. These are combined into
the standard business and social values described in Section 2. We present
and discuss, in this section, actual values, benefits, and costs as well as
material developed in the Appendices. We analyze the tire management systems
and draw conclusions relating to optimal systems management.
SUMMARY OF CONCLUSIONS
The TIREC cost/benefit analysis provides explicit information supporting
three conclusions:
1. Tire solid waste decreasing alternatives are economically preferable to
engineering resource recovery alternatives; both retreads and 100,000 mile
new tires can be privately manufactured at a profit while providing substan-
tial conservation, consumer cost, and environmental benefits.
2. The repair of roads using tire asphalt rubber is the economically prefer-
able large scale end use (disposal method) for the rubber in worn tires; tire
asphalt rubber provides benefits to society through road repair costs which
can be avoided as a result of the process.
3. Tire resource recovery by pyrolysis, incineration with energy recovery,
and landfill cannot be operated, at this time, at a profit. These solid
waste tire handling methods will not be implemented by industry without
governmental prodding. There are environmental and conservation benefits
which provide social justification for these processes, however.
These conclusions are significant in that they indicate that the econom-
ical solution to the solid waste tires problem lies in alternatives not cur-
rently promoted by either the tire industry or by the federal government.
The conclusion that waste prevention is economically superior to resource
recovery is especially significant since this is a systematically determined
conclusion based upon facts and data documented in this report. This waste
reduction conclusion has ramifications for several federal solid waste
management programs as well as for tires.
17
-------
Two other conclusions were reached in developing the information needed.
4. It is technically feasible, at this tine, to produce tires which will
last, on the average, 100,000 miles (160,935 kilometers). These tires can
be safer and less costly, on a cost per mile basis, than current steel belted
radial tires. They can be manufactured for less than $30 and sold for about
$100 each. 100,000 mile tires have substantial benefits upon which to build
a marketing campaign. They promise significant total industry profits as
compared to current steel belted radial tire total industry profits. Three
preliminary 100,000 mile tire designs are identified later in this section
and are discussed in Appendix E.
5. Retreading is an existing solid waste recycling business which is operat-
ing on its own merit at a profit. It is possible to dramatically increase
the number of tires retreaded, however. New tires could be designed to en-
hance retreadability; the tire within a tire design could be used to provide
increased safety. In this design a second tire is built inside each tire so
that when the outside tire fails the inside tire still operates safely. Re-
treading methods, equipment, and materials could be improved to provide a
better product. Retread markets could be expanded with better communication
to consumers concerning the recommended uses and limitations of retreads.
VALUES, COSTS, AND BENEFITS
The basic sixty benefits and costs calculated by TIREC are given in
Table 4. The values calculated based upon these and upon modification of two
of these are presented in Table 3 below. Table 3 identifies the relative val-
ues of source reduction, recycling by retreading, tire asphalt rubber, and
other resource recovery alternatives.
TABLE 3. BUSINESS AND SOCIAL VALUES PER HASTE TIRE
Strategy Standard business values Social legislative values
Resource recovery
Road repairs
Landfill
Incineration energy
Pyrolysis
Recycling
Retreading
Source Reduction
100,000 miles
SDVi
-$ 1.19
-$ 1.09
-$ 1.20
-$ .66
-$24.85
$ 2.43
SBV1m
$ .01
-$ 1.09
-$ 1.20
-$ .66
$ 6.17
$ 6.27
LEGVi
$31.27
$ .11
$ .66
$ 1.77
$27.81
$19.38
LEGVim
$31.75
$ .08
$ .50
$ 1.49
$30.49
$29.07
Note: The SBV^ and SBV^ columns are estimates of the revenues and costs per
solid waste tire per four years; these are the sums of benefit number one and
the first four costs of Table 4 except as noted in definitions on pages 13
and 14. The LE6V values include all of the benefits of Table 4 except that
LEGVim excludes employment effects (C^).
18
-------
TA3I.E 4. BENEFITS AND COSTS PER STANDARD TI3i£ OR PER FOUR YEARS
Management Alt.
alternative #
Resource recovery
Road repairs 1
Landfill 2
Incin. energy 3
Pyrolysis 4
Recycling
Retreading 5
Waste reduction
100,000 miles 6
Note: a negative
benefit is, in
reality, a cost.
A negative cost
is a benefit.
1
1.15
0.10
0.53
0.96
-34.15
0.79
-o
o
Q-
0
ft-
CU
C
fD
CU
3
o
CL
fD
O
fD
Cu
fD
Q.
£
£•
fD
Benefit
2
38.69
0.00
0.00
0.00
47.28
22.70
Benefit
0
3
C
TO
O
o
in
o
ol
fD
O.
O
categories
3
0.00
0.00
0.00
0.00
1.61
1.19
defini
o
*T*1
0
Cu
fD
•o
-J
O
-h
C/l
n-
cu
CU
3
fD
-s
4
1.19
1.19
1.19
1.19
0.60
0.55
tions
3-
(/>
n
ta
fD
3
<
-5
0
3
fD
3
<-*•
fD
3"
fD
— i.
O
5
5.00
0.00
0.53
0.96
5-86
2.20
o
3
(/)
(D
-S
Cu
rl-
o'
3
0
-h
3
Cu
r*-
fD
-s
CU
in
1
1.14
1.14
1.14
1.32
1.08
0.45
— (
n>
o
0
ro1
o
<-*•
o
3
3
Q.
-5
n>
Q.
a.
ta
Cost
2
11.4?
0.05
0.52
0.25
-11.98
- 2.43
Cost
-o
-i
0
Q.
c
o
o
3
«*
"O
o
o
t/5
V)
3
CU
a.
S
a>
fD
categories
3
1.71
0.01
0.08
0.06
0.00
- .85
4
0.00
0.00
0.00
0.00
1.61
1.19
5
0.48
- 0.03
- 0.16
- 0.29
2.68
9.69
definitions
Q.
3
3
~i
C"*"
^'
fD
Cu
3
Q.
CU
-5
fD
3
O
-5
T3
0
CU
n>
TJ
o
-h
S"'
<~t~
fD
(/I
C-i
O
cr
10
CU
_*.
3
CO
a.
_,
o
in
i^
fP
-------
100,000 mile tires, at a price of $107 each - a production cost of about
$30 each - and a discount rate of twenty percent, display a high relative
value from all viewpoints: Each 100,000 mile tire increases tiie national tire
industry product (value of the tirs industry) by $2.43 per four years; for a
single private tire manufacturer each 100,000 mile tire promises $6.27 in net
profits per four years; 100,000 mile tires have eleven times the value of the
most optimistic representation of the socio-economics (LEGVJ of pyrolysis
(destructive distillation), a resource recovery netbod highly recon-mended ami
promoted by the tire industry; the value of 100,000 mile tires is 176 times
as great as that of landfill, the current tire solid waste disposal method,
vjhen social values concarning quality of the physical environment, conserva-
tion of materials, and cost per year of tire services for consumers are taken
into account.
These value relationships include a $9.69 social cost (per 100,000 mile
tire each four years) associated with decreased employment in the tire in-
dustry. This social unemployment cost was measured as the value of the labor
not needed each four years as a result of the decreased production throughput
associated with 100,000 (versus 40,000) mile tires. When this employment
cost is excluded from the value definition, 100,000 mile tires are about
twenty times as valuable as pyrolysis.
100,000 mile tires are a most valuable alternative. When it is consid-
ered that each 100,000 mile tire could be retreaded for a second life and
then treated for resource recovery use in road repairs. A change in tire
product design such that automobile passenger car tires obtain, on the ave-
rage - under normal conditions of use - 100,000 miles is desirable from both
the private profit oriented and the public socially oriented viewpoints.
The technical feasibility, marketability, and the effect of parametric
variations in the $107 price, $30 production cost, and twenty percent inter-
est rate are discussed later in this section. Generally, these do not alter
the conclusion favoring 100,000 mile tires.
The second factor evident from the basic research results of Table 2 is
that retreading is a highly profitable and socially valuable business. A re-
treaded tire promises $6.17 in profit to an independent retreader. When the
materials conservation, decreased solid wastes, and consumer cost social ben-
efits are included in the analysis, retreading a-sumes a value in excess of
the 100,000 mile tire value. From the viewpoint of the tire industry as a
whole, however - or from the viewpoint of a tire dealer selling both retreads
and new steel belted radial tires - retreads are costly. A new steel belted
radial tire promises $24.85 more profit than a retreaded tire. It is not to
the tire dealers benefit to sell more retreads if these sales are at the
expense of new steel belted radial tire sales.
Both the 100,000 mile tire design and retreading should be implemented
prior to resource recovery, according to their high values.
Cryogenics, with the use of recovered rubber in road repairs, is the
best, most valuable, tire resource recovery method. The tire asphalt rubber
process loses $1.19 per tire processed with cryogenics (SDV-,). VIhen
20
-------
cryogenics is net usea, the production of recovered tire rubber just about
breaks even (SBVini = .01). These representations do not include the cost of
repairing roads. As a public program, when the social benefits of road re-
pair costs avoided are taken into consideration (a value of $38.69, Table 3)
tira asphalt rubber moves from the loss or break even situation to a position
of relatively overwhelming value as a solid waste tire handling method. Each
40,000 mile tire processed by cryogenics and used in tire asphalt rubber to
repair roads provides a 530.49 net value to all concerned.
Lanufill, tire incineration with energy recovery and pyrolysis (destruc-
tive distillation) are costly business propositions. For the 200,000,000
solid waste tires generated in the United States each year these would cost
the tire industry 132 nil!ion dollars to 218 million dollars per year; tiie
tire industry ends up with most old tires when traded in and, accordingly,
the responsibility for disposal. Obviously these alternatives will not be
implemented, in large scale, by the tire industry, without governmental
prooding.
Increased incineration or pyrolysis of solid waste tires is not without
benefits, however. Tire resource recovery creates jobs, avoids use of the
environment as merely a waste disposal sink, and conserves resources in addi-
tion to providing the values of che recovered products. Landfill, as a land
reclamation process, demonstrates sone of these benefits. The values of
these second place resource recovery processes, when all benefits and costs
are included, are positive: Each solid waste tire provides net benefits of:
Landfill $ .11
Incineration/energy $ .66
Pyrolysis $1.77
;Ja examine to costs and benefits aggregated to produce the values of
Table 2 in four technical subsections: 100,000 Mile Tires, Rotroading, Tire
Asphalt Rubber, and Other Resource Recovery Technologies.
100,000 MILE TIRES
Technical Feasibility
It is technically feasible, at this time, to produce tires that will
last, on the average, 100,000 miles (160,935 kilometers). Truck tires, in
current practice, obtain 115,000 miles (185,035 kilometers) of original life
before? the first retreading. Three technological alternatives for the deve-
lopment of 100,000 mile passenger car tires are:
1. Large High Pressure Tire (LHP). Redesign autos to use the larger tira
sizes; increase operating pressure in the tire and redesign the automo-
bile suspension system to absorb some of the increased harshness of the
ride.
2. Thick Tread-Wide Tire (TTW). Use truck tread rubber, increase the thick-
ness of the treac rubber on conventional passenger steel belted radial
tire carcasses to the maximum safe thickness; widen the tire as in cur-
rent sporty wide tires.
21
-------
3. Durable Tread Rubber (DTR). Develop a highly durable tread rubber which,
with the same tread thickness as in current passenger tires, and at the
same low inflation pressures, will obtain 100,000 miles.
The LHP and TTW 100,000 mile tires are currently feasible designs. The
DTR 100,000 mile tire is, apparently, yet to be developed. These designs are
discussed in Appendix E.
Production Costs
We calculated a production cost for 100,000 mile TTW tires; these are
essentially current steel belted radial tires with increased width and tread
depth. The production cost, H, may be represented as:
H = the cost of a current steel belted radial tire PLUS
the additional materials cost PLUS
the additional labor costs PLUS
an additional allocation for overhead expenses
H = Cr(l + S^ + SLHL + S0H0)
Where:
Cr = the cost of producing a current steel belted radial passenger car tire,
excluding manufacturer's profits
Sm = the decimal fraction of a steel belted radial tire's production costs
attributable to materials only
Hm = a number representing the additional amount of materials needed to
obtain 100,000 miles
Sj_ = the decimal fraction of a steel belted radial tire's production cost
attributable to labor, only
HL = a number representing the additional labor needed to produce a 100,000
mile tire
S0 = the decimal fraction of a steel belted radial tire's production costs
attributable to overhead
H0 = a number representing the additional overhead which must be allocated
to a 100,000 mile tire.
Our estimated production cost is:
H = 21.68(1 + (.475)(.45) + (.275)(.25) + (.250)(.40)
= $29.92
The TIREC program calculated this cost to be $29.71. 100,000 mile
tires, then, excluding manufacturer's profits, cost about $30 each to
produce.
Sales Price
Tire manufacturers would sell 100,000 mile tires directly to the auto-
mobile manufacturers for use as original equipment. Tire sellers have the
22
-------
option of selling 40,000 mile tires that last four years (at 10,000 miles per
year) or TTW 100,000 mile tires that last ten years. We formulated the alter-
native sales of two 100,000 mile tires or five 40,000 mile tires as a present
value problem to determine the discounted gross profits needed to make the
two alternatives equally attractive to the tire industry.
TABLE 5. GROSS PROFITS OF FIVE 40,000 MILE TIRES
Beginning
of year
1.0
5.0
9.0
13.0
17.0
PV factor
20%
1.000
.482
.233
.112
.054
Total
Steel radial
gross profits
$ 42.59
$ 42.59
$ 42.59
$ 42.59
$ 42.59
$212.95
Present value
of gross profits
$ 42.59
$ 20.53
$ 9.92
$ 4.77
$ 2.30
$ 80.11
).ll gross profits is earned on five 40,000 mile tires over a twenty
year period. In place of these we propose two 100,000 mile tires, one sold
at present and the other at the beginning of year eleven. We set the gross
profit of the current sale of a 100,000 mile tire (G|_) plus the present value
of the gross profits on the 100,000 mile tire sale at year eleven (.1626^)
equal to the profits on the alternative five 40,000 mile tire sales:
Gh : 20% discount rate
Gh + .162Gh = 80.11
on n
= $68.94
!.94 profit is needed on a 100,000 mile tire in order to provide the
same gross profits for the tire industry as is earned currently with 40,000
mile tires. We added this estimate of gross profits to the $30 production
cost of a 100,000 mile tire to determine a reasonable price for a 100,000
mile tire. The price of a 100,000 mile tire, according to this procedure,
should be $98.94 or about $100.
Marketability
Consumers will buy 100,000 mile tires at prices above $100. In a pre-
liminary market survey virtually all of the respondents indicated that they:
(1) were interested in such tires, and (2) were willing to pay from $30 to
$150 additional for each tire (See Appendix E). There are several reasons
for this interest:
23
-------
1. Consumers can obtain 100,000 mile tires when they buy a new car and can,
conveniently and accordingly, include ten years of tire costs in the financing
of the vehicle.
2. Consumers can obtain 100,000 mile tires at a price which, in present value
analysis, is cheaper than the costs of the alternative four sets of tires.
Consequently consumers can obtain a lower cost per mile.
3. Purchase of 100,000 mile tires will eliminate the need for at least three
distasteful trips to purchase replacement tires; this will include fuel sav-
ings, time savings, and avoidance of the confusion associated with hundreds
of tire brands and types.
4. Consumers can recoup their investment if they sell their car after, for
example, three years; the factor of having good tires with 70,000 miles of
treadwear left will be an asset which will increase the resale price and
sales potential of the three year old car.
5. Consumers can avoid public costs associated with waste tire disposal.
Waste tire disposal involves, at the least, transportation costs, expensive
shredders costs, and landfill costs. 100,000 mile tires eliminate sixty
percent of the waste tires generated in any year and, accordingly, avoid
sixty percent of the public tire waste handling costs which would otherwise
be incurred.
6. Consumers are very much conscious of the needs for conservation and pro-
tection of environmental quality. They will buy 100,000 mile tires because
they believe in the need for conservation and because they value quality of
the physical environment.
7. 100,000 mile tires will provide added safety to the consumers vehicle and
to vehicles with which consumers interact on the road. Safety studies have
indicated that baldness of tires is a significant factor contributing to
accidents. 100,000 mile tires, with respect to this most important safety
factor, would be much safer than current tires. 100,000 mile tires would not
be likely to become bald until, on the average, 100,000 miles of service, 10
years of service life, were completed. Consequently 100,000 mile tires would
eliminate much of the danger associated with bald tires. They would have a
substantial amount of tread remaining during the last five to seven years of
automobile use whereas current tires would either be balding or, perhaps re-
placed with cheap tires. Even if 100,000 mile tires were not inherently safe
they could be redesigned to be safe via the tire within a tire design.
Disadvantages
• There are several potential disadvantages to 100,000 mile tires. These
include:
1. The selling prices are higher; demand for tires or cars may decrease as
a result.
2. The losses per tire due to tires damaged and rendered unusable during
service life will be higher.
24
-------
3. 100,000 r;ile TTW and LI-IP tires will be heavier with a cost to consumers
in terms of lower gasoline mileage.
4. 100,000 mile tires inay alter the appearance of the vehicle.
5. 100,000 mile tires may have a more harsh ride than ao current tires.
6. 100,000 mile tires may not handle as well as do current tires; traction
characteristics may be different.
7. 100,000 mile tires will decrease employment in the long run.
V.'e offer the following brief responses to these disadvantages:
1. The ability to finance the tires when the automobile is purchased should
offset the effect of the high selling price.
2. The total losses due to damages during service life may be lower due to
increased durability of 100,000 mile tires even though per tire losses are
higher.
3. & rough calculation of the effect of the increasei weight on gasoline
mileage provides an increased cost of only $3.84 per 100,000 mile"tire per
four years (See Appendix E). This cost is not significant in comparison to
the benefits of 100,000 mile tires.
4. The appearance of the vehicle need not oe changed considerably to allow
for 100,000 mile tires, even though it may be.
5. Consumers are willing to endure a more "harsh" ride than is obtained with
current tires.
6. 100,000 mile tires may handle just as well as current tires; truck tires
seem to do a reasonable job.
Vie do not argue with the disadvantage that 100,000 mile tires will de-
crease employment in the long run. The conclusion that 100,000 mile tires
are desirable is, at the least, highly controversial. The longer service
life idea is avoided by tire manufacturers and sellers. The decreased mar-
ket volume, decreased employment, and the effects these have on the national
economy are taken, by some, to be overriding considerations which preclude,
or should preclude, consideration of 100,000 mile tires by industry and by
public decisionmakers.
We included these market, employment, and macro-economic effects in our
analysis: (1) An explicit measure of employment shifts or losses, represented
as system costs, was calculated; (2) the price at which a 100,000 mile tire is
to be sold was represented as a price which would provide profits equal to the
discounted present value of the 40,000 mile tires which the 100,000 mile tire
replaces. Consequently, little or no macro-economic change effects, and
multiplication of macro-economic effects, in terms of Gross National Product
(the Multiplier) are expected. GNP and the tire industry value remain rela-
tively constant at the prices and costs of our basic analysis. Those who
would cast doubt upon the efficacy of the 100,000 mile (160,935 kilometer)
service life based upon these employment and macro-economic arguments might
direct their analysis and comments toward how these effects were
25
-------
represented in this analysis rather than whether they were included.
Business Costs and Benefits
Table 6 studies two business oriented measures of profits for 100,000
mile tires based upon the TIREC costs and benefits of Table 4.
TABLE 6. MANUFACTURERS PROFITS: 100,000 MILE TIRES
SBVg SBV6ni
Benefits
$ .79 $25.57 65] Product value and decreased wastes
$ .79 $25.57 TOTALS
$ .45
-$2.43
-$ .85
$1.19
-$1.64
$2.43
$ .45
$11.90
$ 4.17
$ 2.79
$19.31
$ 6.26
Costs*
Cgi Tire collection and shredding
Cg2 Production and olid waste
Cg3 Administrative and marketing
Cg4 Corporate profits taxes
Totals
Benefits mfnus costs
* A negative cost indicates, in reality, a benefit. The values shown were
calculated in accordance with the formulas given in Appendix A at a business
interest rate of twenty percent, a production cost of $29.71, and a 100,000
mile tire sales price of $107.
The first measure, SBVg, includes incremental effects of 100,000 mile
tires as compared to 40,000 mile tires and may be interpreted as saying that
the gross product of the tire industry increases by $2.43 per 100,000 mile
tire each four years. The significance of this information is that 100,000
mile tires can be a viable business alternative as compared to current tires.
Even with the smaller production/sales volume taken into consideration
each 100,000 mile tire provides $.79 more revenues to a manufacturer/seller
per four years (B61 = $.79; Reference Table 6) than does the comparable dis-
placed 40,000 mile tire. This increase represents both sales revenues and
tire solid wastes costs avoided. Unlike resource recovery, however, 100,000
mile tires leave some solid waste tires requiring disposal each year; the
remaining tire solid wastes, per 100,000 mile tire, cost $.45. It is cheaper
by $2.43 (on a production cost per year of service life basis), over a four
year period, to manufacture 100,000 mile tires than it is to manufacture
40,000 mile tires, even when the cost of landfill ing the tire solid wastes
remaining are included in the tradeoff (Cg2 = -$2.43). Administrative and
26
-------
marketing costs with 100,000 mile tires are, at a minimum, $.85 cheaper per
tire than the comparable costs of the 40,000 mile tires replaced. In fact,
administrative and marketing costs are probably very substantially lower than
this representation for 100,000 mile tires since tire manufacturers would be
the 100,000 mile tire sellers and sales would be made directly to the automo-
bile companies; retail administrative and marketing costs would be, in great
part, eliminated. Finally, corporate profits taxes on a 100,000 mile tire
will increase by $1.19 per four years as compared to taxes on a 40,000 mile
tire. When all of these effects are combined the net evaluation of the
100,000 mile tire is very favorable; $2.43 more per 100,000 mile tire than
for a 40,000 mile tire is realized (SBVs = $2.43). At a price of $107 each
for 100,000 mile tires, a production cost of $29.71, and an expected rate of
return on investments of twenty percent, 100,000 mile tires, as a business
venture, compare very favorably with current 40,000 mile tires.
The employment effects, the £55 cost category, are not included in the
business analysis value definitions (SBV's) since these are not costs to tire
companies, but rather are social costs. Employment effects are discussed
later in this section in the analysis of social values.
The second ciefinition of Table 6, SBVgm, (page 13) includes the total
discounted benefits and costs per four years; these effects were not measureo,
as were SiJVg effects, as incremental costs and benefits compared to 40^,000
mile tires. The $BVgm measure depicts the situation that 100,000 mile tire
manufacturers/sellers would make net profits of $6.26 (including the costs of
adequate tire solid waste disposal) oer 100,000 mile tire per four years. A
40,000 mile tire, incomparison, makes only $2.56 in profits (See Table E-5)
and even this figure should be decreased by tire solid waste costs to be com-
parable to the $6.26. This rate of profits^ at a production cost of $29.71
and a sales price of $107, is high. Those who manufacture and sell 100,000
mile tires can make substantial net profits.
The $6.26 is a net profit rate; in actuality $25.06 in net profits would
be realized at_ the time of sale. The customer, however, would not return for
a repeat sales for ten years.
Social Costs and Benefits
Social values of the 100,000 mile tire alternative are given in Table 7.
These include, for LEGVe, four additional public benefits and the controver-
sial additional cost of displaced jobs associated with the 100,000 mile tire
alternative.
The additional benefits of 100,000 mile tires total $26.64, a very sub-
stantial amount in addition to the $.79 incremental product value benefit to
the manufacturer. Consumers can save $22.70 each four years by purchasing
100,000 mile tires at $107 each as compared to current steel belted radial
tires at $65.50 each. The increased corporate profits taxes, $1.19 per
100,000 mile tire, paid by the tire manufacturer/seller are paid to the
public treasury and, hence, are available for any public benefit. Each
100,000 mile tire prevents the use of $.55 worth of the physical environment
27
-------
and conserves $2.20 worth of tire production materials each four years. These
are benefits which should be taken into account in determining the desirabil-
ity of 100,000 mile tires. Notably, they do not impinge directly upon the
tire industry as costs or revenues of a conventional accounting sense.
TABLE 7. SOCIAL VALUES (LEGV): 100,000 MILE TIRES
LEGV6
$ .79
$22.70
$ 1.19
$ .55
$ 2.20
$27.43
$ .45
-$ 2.43
-$ .85
$ 1.19
$ 9.69
$ 8.10
$19.33
LEGV6m
$ .79
$22.70
$ 1.19
$ .55
$ 2.20
$27.43
$ .45
-$ 2.43
-$ .85
$ 1.19
$ -
-$ 1.64
$29.07
Benefits
Bg-| Product value and decreased wastes
Bg2 Consumer costs avoided
Bg3 Corporate profits tax transfers
Bg4 Physical environment preservation
Bgg Conservation of materials
Total
Costs
Cg] Tire collection and shredding
Cg2 Production and solid waste
Cg3 Administration and marketing
Cg» Corporate profits taxes
Cg5 Job gains and losses
Total
Benefits minus costs
The cost of displaced jobs associated with 100,000 mile tires is very
substantial; each 100,000 mile tire eliminates, in the long run, $9.69 worth
of labor employment. This "translates" to about 187,500 persons' employment
being affected ouring a fifteen year psriod, 12,500 persons per year. (See
page 134.)
Increased employment is a common economic objective of federal policies
and, accordingly, an alternative which decreases employment may be considered
costly. This type of thinking, however, supports: (1) the status quo, and
(2) the concept that only those alternatives which increase employment are of
value. Cannot an alternative which promotes efficiency for tire manufactur-
ers and/or consumers, and efficiency in the use of materials and of the phys-
ical environment be of value? Are all organizations now in existence to grow
larger and larger simply to increase employment? Should hot new medicines be
introduced, simply to maintain the rate of patient referral to medical doct-
ors, to maintain the level of employment of doctors? The response is obvious.
There are changes which decrease employment which are desirable to society.
28
-------
The costs and benefits associated with 100,000 mile tires indicate that
this is one such change. The social value (LEG\/5m) of 100,000 mile tires,
excluding the employment effect, is $26.59, a very substantial amount. The
social value including the employment effect is $16.89, still a very substan-
tial amount. And 100,000 mile tires promise increased employment initially,
an effect not included in our models. The decrease in employment occurs over
a period of ten years or so; this period allows ample time for reaction to
displacement from jobs in an orderly fashion. These considerations are dis-
cussed in more detail in Appendix E.
It may be noted that the value of 100,000 mile tires is dependent upon
several data parameters included in our analysis; the values and conclusions
discussed above may vary with changes in: (a) production costs; (b) sales
prices; and (c) the discount rate. Figures 3 through 6, respectively, con-
sider variation in these factors and the effects of these variations upon
value.
Figure 3 indicates that, given a 100,000 mile tire price of $107 and a
discount rate of twenty percent, any 100,000 mile tire production cost above
$36 will decrease the profit oriented SBVg (Line AB) to below zero. At a
production cost of $56 per 100,000 mile tire, the Business Value (SBVg) drops
to -$10; a $26 increase in production costs, in addition to the $30 cost we
used to represent 100,000 mile tires, decreases the net business benefits by
about $13 per tire. The business value of 100,000 mile tires is moderately
sensitive to 100,000 mile production costs; a 55 percent decrease in net
business benefits accrues to a 100 percent increase in production costs. The
moderate stability of value with this parametric change is due to: (1) the
ability of 100,000 mile tires to spread the increase in costs over ten years;
and (2) the fact that no other business cost changes dramatically with
changes in 100,000 mile production costs.
The social value (LEGV6 and Line CB in Figure 3) is very sensitive to
100,000 mile tire production costs. A 100 percent increase in production
costs precipitates a 176 percent decrease in the social value LEGVg. This
sensitivity is due to the combined production cost and employment effects.
The social value modified to exclude decreased employment costs (Line DE
representing LEGVgm) is moderately sensitive to production costs, but never
drops below $13 - even at production costs of $60.
The significance of Figure 3 in our analysis is that, ceteris paribus,
our conclusion that 100.000 mile tires can be profitable to the tire industry
holds good for a twenty percent increase over the $29.71 production cost rep-
resentation of our analysis. The social value of 100,000 rile tires holds
positive for a sixty-one percent increase in representation of 100,000 ivile
tir^ production costs. The argument that our analysis and conclusion is neg-
ated by an error in estimation of 100,000 itrile tire production costs is
questionable. Figure 4 demonstrates the relative importance of the various
benefits ano costs. Figure 4 shows the variation in costs and benefits asso-
ciated with models of Appendix A. The costs and benefits not plotted did
not vary with changes in production costs of 100,000 :-n'le tires.
29
-------
100,000 MILE TIRE PRODUCTION COST IN $
20
00
CtL
LU
Q.
OO
00
o
o
10
-10
30
40
50
60
Figure 3. Production cost versus values 100,000 mile tires.
30
-------
25
Cd
UJ
>-
«3-
C£.
UJ
Q_
20
IT 15
UJ
o
o
o
*1
o
o
o:
LU
a.
on
z
UJ
OQ
10
oo
O
30
40
production
cost
di fferential
50
60
PRODUCTION COST PER 100,000 MILE TIRE
Figure 4. 100,000 mile tires: costs
-------
Ul
O
O
O
O
oo
I—
»— «
U_
UJ
z
LU
co
O
to
LU
50
40
30
20
10
-10
-12.5
\
LEGV
40 50 60
70 80 90 100 110 120 130
100,000 MILE TIRE PRICE IK $
Figure 5. 100,000 mile tire price versus values and benefits.
32
-------
-
«3-
C£.
UJ
O-
20
LEGV6
LU
O
O
O
O
O
UJ
O.
UJ
UJ
CQ
00
O
O
10
SBV6
I
I
12 20 30
BUSINESS DISCOUNT RATE %
08 18
GOVERNMENTAL DISCOUNT RATE %
Figure 6. Discount rate versus 100,000 mile tire values.
33
-------
Figure 5 indicates that, given 100,000 nrile tire production costs of
$29.71 and a discount rate of twenty percent, a 100,000 mile tire price
greater than $100 is needed in order that 100,000 mile tires can be an
attractive alternative for the tire industry. At the $100 price there are
substantial social benefits. The social benefits of the 100,000 mile tire
decrease by 13 percent for a 100 percent increase in the price of the 100,000
mile tire. This represents a relatively inelastic relationship between price
and social value. The standard business value of the 100,000 mile tire in-
creases, ceteris paribus, by 60 percent for each 100 percent increase in the
selling price. At a price of $100 for the 100,000 mile tires, substantial bene
benefits exist for both society and for the tire industry. This price is not
unworkable as 100,000 mile tires have the seven substantial advantages, dis-
cussed above, upon which to build a marketing campaign, and since a prelimi-
nary consumer survey has indicated high consumer interest in 100,000 mile
tires even at this price.
Figure 6 indicates that, at a price of $107 and a production cost of
,$29.71, 100,000 mile tires are attractive to the tire industry at any dis-
count rate; the net value of 100,000 mile tires is positive no matter what
the discount rate used at this price and cost. At a lower price, undoubtedly,
there is a minimum discount rate required to make the tires viable. The
social value of 100,000 mile tires decreases with an increasing discount rate
and yet is substantial, in excess of $15 per 100,000 mile tire, at any dis-
count rate below 40 percent for business decisions and 28 percent for govern-
mental decisions. In TIREC a business discount rate twelve percent higher
than the governmental rate was used.
RETREADING
Retreading is obviously technically feasible and an economically viable
business proposition; consequently we do not discuss these as was done above
for 100,000 mile tires. He discuss, instead, the pros and cons of retread-
ing and the costs and benefits cf retreading determined by TIREC.
Advantages and Disadvantages
Retreading is recycling. In tire solid waste management it should be
recognized that retreading is a prominent management alternative for several
reasons:
34
-------
LIST 1
ADVANTAGES OF RETREADING
Retreading conserves natural resources; it reuses tire carcasses.
Retreading provides several years of continued primary use of a
tire and, later, salvage by any of the several methods proposed
for tire resource recovery. Retreading decreases the rate of
usage of oil and other resources used in manufacturing new tires.
Retreading provides economical service to consumers. The
average cost of a new passenger car tire is $37; the average
cost of a retread is $18. Retreads can be built to provide
the same service life as a new tire.
Retreading provides jobs. Any increase in the number of tires
retreaded will require labor and materials; a commensurate in-
crease in the number of jobs, an increase in employment, will
also occur with increased retreading.
Retreading decreases the rate of public tire solid waste dis-
posal costs required. Fewer tires remain to be disposed of
each year with increased retreading. Consequently smaller
investment and operating costs for tire disposal facilities
are required.
Retreading enhances environmental quality, the quality of the
physical environment. The larger the number of tires retreaded,
the less land or air that is needed as a disposal sink, and,
consequently, the higher the level of environmental quality.
Retreading is an obviously viable business alternative that can
operate based upon its own merit to provide profits to private
entrepreneurs; it does not require governmental subsidy or
operation.
These many favorable aspects of Retreading lead one to wonder, "Why isn't
retreading promoted and increased in extent?". Again several reasons can be
identified:
35
-------
LIST 2
FACTORS LIMITING RETREADING
Retreading has been thought of as only an interim solution;
the tire still remains to be disposed of at a later date.
The attitudes of tire manufacturers and dealers toward
retreading do not favor a dramatic increase in the number
of tires retreaded.
Retreaded tires have been regarded by the public as "of
dubious safety". Chunks of retreaded tires are constantly
seen along highways.
The thousands of different tire sizes, shapes, and types
produced by new tire manufacturers have thwarted increased
retreading because of the costs.of maintaining a large in-
ventory of molds and other retreading equipment needed to
process the variety.
An adequate inventory of carcasses suitable for retreading
has not been generally available.
Retreaders have not made their objective to, "Produce the
highest quality retread possible". Instead the objective
has been to provide an adequate retread at a lower cost.
Retreaders have not marketed their product to the best
extent possible.
It is a fact that retreading is different than resource recovery; re-
treading is a solid waste decreasing rather than residue handling process.
Still retreading avoids solid waste operating costs and avoids costly in-
vestments in tire solid waste processing facilities. It is a very valuable
part of the solid waste tire system as demonstrated by the net cost/benefits
determined in this research.
We examine these costs and benefits in Table 8; the other factors limit-
ing retreading are then briefly discussed and some ideas which may assist in
eliminating the limits are presented.
36
-------
TABLE 8. THE BENEFITS AiJD COSTS OF RETREADING
SBV5
-$34.15
-$34.15
$ 1.08
-$11.98
-
$ 1.61
-
-$ 9.29
-$24.86
SBV5m
$18.82
$18.82
$ 1.08
$ 9.52
$ 1.90
$ .16
-
$12.66
$ 6.16
LEGV5
-$34.15
$47.28
$ 1.61
$ .60
$ 5.86
$21.20
$ 1.08
-$11.98
-
$ 1.61
$ 2.68
-$ 6.49
$27.69
Benefits
85^ Product value and decreased waste
Bg2 Consumer costs avoided
Bg3 Corporate profit tax transfers
654 Physical environment preservation
B55 Materials conservation
Total benefits
Costs
C5i Tire collection and shredding
C$2 Production and solid waste
C$3 Administrative and marketing
C$4 Corporate profits taxes
C55 Job gains and losses
Total costs
benefits minus costs
Retreading: An Interim Solution?
An Integrated Industry View of Retreading
SB\/5 indicates the value of a retreaded tire as seen from an integrated
tire industry viewpoint. Retreaded tires are substitutes for cheap new tires;
we valued the new tires at $52 each. This was meant to be a value for a
cheap new steel belted radial tire. A retreaded tire sold in lieu of the new
radial decreases the revenues of the seller by $34.15; this is an opportunity
cost to a tire dealer.
Retreaded tires are very cheap to produce, however; as compared to a new
steel belted radial tire, retreads are $11.98 cheaper. The difference in
corporate profits taxes between the cheap new and the retreaded tire is $1.61.
The tire collection costs for retreading are $1.08. These factors together
favor the sale of the new steel belted radial tires by a figure of $24.86
per tire.
We believe that it is important to retreading that it be recognized
that increased retreading is not viewed by new tire dealers as being bene-
ficial to the tire industry. To a retreader who is not a new tire seller
37
-------
increased retreading is an objective. From the integrated viewpoint of a new
tire dealer who is also a retreader, retread sales are not as valued as are
new tire sales. From a tire dealers viewpoint too much retreading would cut
out too many new tire sales. For a tire manufacturer, too much retreading
would lower the demand for new tires and would decrease production needs,
and profits. To dramatically increase the extent of retreading, these atti-
tudes of manufacturers and dealers must be changed; then manufacturers and
dealers will find, perhaps design changes and profit structure which make
retreading total profits more competitive with new tires. This may be
accomplished by (1) education, (2) government regulation, and/or (3) the
actions of a strong independent organization of retreaders.
A Retreaders Viewpoint On Value
The SBV5P! value of Table 8, $6.16 per retreaded tire, is a representation
of the profits on a retreaded steel belted radial tire excluding the compari-
son and reference to a cheap new steel belted radial tire. There is no limit
to the number of tires that a retreader who is only a retreader and not a new
tire dealer wants to sell. $18.82 revenues, on the average, are made on each
sale and only $12.66 in costs are incurred. The profit per retreaded tire is
a fine incentive to increase the extent of retreading from a retreaders
viewpoint.
Retreading: Social Value
Our representation of the social public value of retreading includes all
of the costs and benefits: the tire industry costs described above, a $34.15
net opportunity cost (net benefits of decreased solid waste handling costs)
for the new tire not sold due to a substituted retread, the $1.08 tire col-
lection cost, and the $1.61 cost of increased profits taxes, are included in
LEGV5 °f Table 8. The $2.68 net cost per retreaded tire of decreased employ-
ment is included. There are benefits of retreading that overwhelm even these
high costs, however. Each retreaded steel belted radial tire avoids $47.28
in consumer costs each four years when compared to the cost of a new steel
belted radial tire. (Had we used the $52 price, instead of $65.50, this bene-
fit would have been $34 per retreaded tire.) Each retreaded tire provides a
$11.98 benefit of decreased, or smaller, production costs than a new radial.
The $1.61 increase in corporate profits taxes paid by retreaders is paid to
the public treasury and, here, is recorded as a benefit. $.60 per tire in
benefits of avoiding use of the physical environment as a tire disposal sink
are realized, and $5.86 worth of tire building materials are conserved. The
benefits of retreading are significantly higher than the costs; $27.69 worth
of net benefits ($14.41 if the $34 consumer cost benefit is used). Retread-
ing, from a public viewpoint is a highly valuable industry, many orders of
magnitude more valuable than pyrolysis, tire incineration, or landfill.
This measure, LEGVs, of value includes, with equal weight, benefits and
costs to tire manufacturers, tire dealers, retreaders, consumers and the
public good. It is a comprehensive representation of value.
38
-------
We include this cost benefit analysis in response to the argument that
"retreading is not a solution to the waste tire problem - that a retreaded
tire must be disposed of some time later". We included the cost of disposal
of the solid waste tires, on a cost per retreaded tire per four year basis,
in the retreading processing cost, C52, of the cost benefit analysis. This
allows the comparison of retreading, as a solid waste management alternative,
to tire resource recovery methods proposed. This representation is one of a
final tire solid waste solution that includes retreading as a process compo-
nent. Retreading is a most important concept, technique, and industry for
tire solid waste management.
Safety of Retreaded Tires
The second factor that we see as a limit to retreading is public percep-
tions of the safety of retreaded tires. It is a fact that retreaded tires
are safer than generally thought. According to Rain's, in a survey of tire
scraps found along highways, almost half of the tire rubber scraps are
from new tires. It seems likely that the public assumes that all scraps of
tire seen along highways are from retreads, when in fact the survey indicates
that this is not the case. It should be noted, however, that retreads have a
higher rate of tread separation per tire than do new tires. This note is
based upon the equal proportions of new and retread scraps found by the sur-
vey and the knowledge that fewer retreads are on the roads than are new
tires. Still retreads are probably safer than is generally assumed.
Retreaded tires can be safer yet if consumers are educated to know the
safe limits in terms of safely allowable distances and speeds associated with
current retreads and new tire designs such as the tire within a tire design
are generally implemented. In this design, if there were a tire failure,
another tire built inside the first would safely take over the tire functions.
Many more tires could be retreaded and sold if the tire within a tire design
were generally implemented by new tire manufacturers. The spare tire might
also be eliminated.
The Tire Size/Shape Limit
There are, perhaps, two to three thousand different types, sizes, and
brand names of tires. A retreader must have equipment to fit the tires which
he will retread; he must have an inventory of molds of many sizes and types.
To the extent that standardization and limitation on the number of tire sizes
and shapes would be implemented, the number of worn tires retreaded could be
increased.
The limitation placed upon retreading by the variety of tires produced
has been relaxed to some extent by the recent Supreme Court decision which
requires more standardization in manufacture and labelling of tires. It may
be that even more standardization of tires is desirable if legislators and
tire processors find the benefits of retreading warrent redesign of new tires
so as to increase retreadability.
39
-------
The Limit On Suitable Carcasses
Retreaders feel limited by the supply of worn tire carcasses available
which are suited for retreading. This limit is closely associated with the
size/shape limitation and would be alleviated by more standardization. In
addition, tire manufacturers could, perhaps, design tires that would be
annoying to ride on after the tread depth decreased toward a point near the
minimum level suitable to retreading. Consumers would, in this situation, be
inclined to retread or sell their tires while in a reasonable condition and,
consequently, the number of tires retreaded could be substantially increased.
Quality Control For Retreads
Retreaders have available as materials several levels of quality; the
usual tread rubber level used on retreads is not the top quality. With the
best quality and workmanship a retread service life equal to the new tire's
life,may be obtained. This emphasis on quality could promote an increase in
the extent of retreading.
Standardization, described above, would help to improve retread quality
since there would be less inclination for a retreader to try to fit a carcass
into a mold which is not exactly the right size.
New equipment has been developed which enables better inspection of tire
carcasses for defects. This equipment could be utilized to a greater extent
to increase retreading.
Statistical quality control procedures, long used in other industries,
may be more and more utilized to control processes, materials, and the number
of defects in completed, production batches. Statistics may be used to im-
prove public perceptions of the retread industry with the advertising of
policies such as "99.7% (virtually 100%) of our first level retreads pass
inspections for: (1) casing soundness, and (2) having been built according
to the highest production standards".
More consumers might be lured to bring their own tires in for retread-
ing; these tires would be of known quality and safeness to the consumer, and
they could be retreaded with top quality tread rubber and other materials on
equipment and with materials designed to exactly match the tires. Quality
control over labor and equipment might be tightened up. The resultant pro-
duct, with good marketing communication, could be sold in larger numbers than
ever before - with the consumer, society, and the retreader all better off.
To the extent that new manufacturers are, in addition, retreaders, new tire
manufacturers would also be better off.
Marketing Retreads
Retreaders have not produced and marketed their product to the extent
possible since it has not been pointed out that retreads provide the conser-
vation, decreased consumer cost, jobs, decreased public costs, and environ-
mental quality benefits quantified in Table 7. A marketing campaign based
upon these factors and on safety would seem to promise great benefits for the
40
-------
retreading industry.
All of the above considerations point towards a conclusion that there
can and should be an increase in the extent of retreading in future years.
To the extent that retreaded tires would still be limited in speed and dis-
tance applications - and as an alternative of similar benefits - new tires
designed to provide vastly increased management alternative.
TIRE ASPHALT RUBBER
Still a method for processing solid waste tires, after retreading, is
needed. Tire asphalt rubber seems destined to fill this need.
Worn tire rubber recovered by cryogenics and mixed with asphalt in the
proportions 25 percent rubber and 75 percent asphalt is useful in road re-
pairs. Tire asphalt rubber repair projects have been carried out since the
late 1960s in Arizona and have been carried out recently in California and
other states. A four year Environmental Protection Agency Project to docu-
ment experience with the tire asphalt rubber repairs is in process and will
be completed in 1981. A detailed look at tire asphalt rubber is provided in
Appendix D.
Costs and Benefits
Table 9 lists the costs and benefits of resource recovery management
alternative, tire asphalt rubber. As a business proposition asphalt rubber
is not economical; each tire processed by cryogenics for use in asphalt rub-
ber results in $1.19 loss.
The rubber used for current tire asphalt rubber projects is not sub-
jected to cryogenics; it is tread rubber buffed from worn tires, and the
processing costs are lower than the $1 per tire cost of cryogenics. Conse-
quently, for companies participating in this process it is an almost break
even process. The current process does not dispose of waste tires, however.
Cryogenics is needed in order that the process may be a waste management
alternative.
The attraction of the asphalt rubber process is the huge public avoided
cost benefits which accrue to highway repair agencies. Should the government,
in accordance with the $38.69 consumer road repair "cost avoided" benefit,
decide to implement the tire asphalt rubber alternative in large scale, the
selling price for recovered tire rubber, included in B]-|, would undoubtedly
increase; tire asphalt rubber in this situation would become an economical
business proposition. The current operators of this process are, undoubtedly,
planning that this will occur.
The social benefits of tire asphalt rubber are highly significant. The
value of the rubber recovered from tires, together with the value of the
solid waste tire costs avoided, is $1.15; each tire provides $38.69 worth of
highway repair costs avoided; $1.19 worth of the use of the physical environ-
ment is avoided for each tire processed; and finally $5 worth of highway
41
-------
repair materials are conserved by the process. The total of these benefits
is $46.38.
TAoLE 9. TIRE ASPHALT RUBBER BENEFITS AND COSTS
SBV1 LEGV]
Benefits
$1.15 $ 1.15 B-J-] Product value and decreased waste
$38.69 &i2 Consumer costs avoided
B-L3 Corporate profits tax transfers
$ 1.19 B14 Physical environment preservation
$ 5.00 615 Conservation of materials
$1.15 $46.38 Totals
Costs
$1.14 $ 1.14 C-|-| Tire collection and shredding
$ 1.00* $11.42 C12 Processing and solid waste
$ .20 $ 1.71 C^^ Administration and marketing
C^ Corporate profits taxes
$ .48 C Job gains and losses
$ 2.34 $14.75 Totals
-$1.19 $31.37 Benefits minus costs
* This figure is the cost per tire for cryogenics; it is not calculated by
TIREC.
Each tire processed by cryogenics costs $1.14 to collect. Processing
costs per solid waste tire are a high $11.42 since, to include the benefits
of road repair costs avoided each four years we must also include the costs
of application of tire asphalt rubber to highways. Administrative and mar-
keting costs total $1.71. Finally the tire asphalt rubber alternative cre-
ates jobs; the asphalt rubber additive is an additional step in road repairs.
On the other hand it delays repairs and thus avoids or eliminates jobs. More
jobs are eliminated each four years than are created. The net jobs effect is
a job loss, per solid waste tire per four years, of $.48. The total of all
of the road repair costs is $14.75.
The net benefits of the road repair alternative are $31.37 per tire pro-
cessed. This is the largest net benefit of any alternative studied. This
value is eighteen times greater than pyrolysis, forty-eight times greater
than tire incineration, and 284 times as great as landfill. When all of the
costs and benefits are included in the analysis, tire asphalt rubber is the
best tire solid waste management alternative of all.
42
-------
PARAMETRIC ANALYSIS: TIRE ASPHALT RUBBER
The high values determined for tire asphalt rubber might have been
caused by any of the factors used in comparison: (1) the conventional road
repair frequency, (2} conventional road repair costs; or (3) the cost of
applying tire asphalt rubber. Me examined variations in each of these
factors.
Figure 7 indicates that the tire asphalt rubber value (Curve AC) is non
linear and riiyhly sensitive to the road repair frequency for repair intervals
greater than five years. Even at a nine year repair interval, however, the
tire asphalt rubber alternative exhibits substantial net benefits, $12. Con-
sequently, we do not find the road repair interval of 3.33 years, used in our
basic analysis, to be misleading; the high value exists even with longer
frequencies between repairs.
Figure 3 demonstrates the affect of the dollar value used to represent
conventional road repair costs upon the LEGV-] value of tire asphalt rubber.
We represented trie tire asphalt rubber costs as $8661 per block. Figure 8
shows how the asphalt rubber value varies in comparison. Conventional road
repair costs would have to be around $4000 per 3733 square yard city block,
or the difference between asphalt rubber and conventional repair costs would
nave to be $4000 before the social value of tire asphalt rubber dropped to
the level of the resource recovery alternatives. This information lends sup-
port to the conclusion regarding the desirability of the asphalt rubber
alternative.
Figure 9 demonstrates the variation of the social value of tire asphalt
rubber with the cost per square yard of road repaired by the process. In our
basic analysis, we used the $1.75 per square yard cost of application of tire
asphalt rubber. This represented the 1/4 inch rubber covering only, as our
processing cost. The 1/4 inch covering, a seal coat, has been applied with-
out aspiialt cover with success in avoiding road repairs; the asphalt cover
just makes the road smoother. Had the entire cost of asphalt and asphalt
rubber, $2.32 per square yard, keen used to represent this cost, the social
value would have dropped substantially, to near zero; the value of the tire
asphalt rubber alternative is somewhat sensitive to the cost per square yard
of tire asphalt rubber. A forty-six percent decrease in value accrues to a
100 percent increase in the cost per square yard of application of tire
asphalt rubber. At any reasonable cost for tire asphalt rubber, however,
the social value is in excess of the other tire resource recovery alternative
studied.
OTHER RESOURCE RECOVERY ALTERNATIVES
Pyrolysis, landfill, and tire incineration in specially designed incin-
erators are all losing business propositions- the tire industry will have to
be prodded to implement these in large scale. These are not without social
merit however; they decrease the use of the physical environment by a value
of $1.19 per tire processed. Incineration and pyrolysis conserve on the use
of energy and materials. The value of these effects is $.53 and $.96 per
43
-------
CO
3
O
o
co
UJ
QL
CO
LU
Z
UJ
CO
•^
to
h-
oo
o
40
30
20
10
10
CONVENTIONAL ROAD REPAIR INTERVAL IN YEARS
Figure 7. Tire asphalt rubber value versus conventional road repair frequency.
44
-------
40
OJ
30
o
GO
UJ
a.
20
CO
GO
o
o
UJ
10
3750
7500
11,250
15,000
CONVENTIONAL ROAD REPAIR COSTS IN $
Figure 8. Tire asphalt rubber value versus conventional road repair costs.
45
-------
TIRE ASPHALT RUBBER ROAD REPAIR COSTS
PER SQUARE YARD OF ROAD REPAIRED, IN DOLLARS
40 h
LLt
h-
00
3C
Q
oc
LU
a.
CO
O
O
O
O
00
UJ
LU
30
20 -
10 -
Figure 9. Tire asphalt rubber: social value versus cost.
46
-------
tire processed, respectively. In addition landfill, incineration, and
pyrolysis create jobs. The value of these jobs is $.03, $.16, and $ 29 per
fnn'nKip6^ Tfl6Se ;!ternatlv?s are not able to compete with retreading,
00,000 nnle tires, or tTre asphalt rubber since they do not exhibit any
benefits of a large scale.
LIMITS ON 100,000 MILE TIRES, RETREADING, AND TIRE ASPHALT RUBBER
The concept central to our analysis of 100,000 mile tires is that they
can be a viable profitable business venture. Another approach to implemen-
tation of the 100,000 mile tire idea would be that such tires be required by
federal product standards; 100,000 mile tires could be required on all new
vehicles sold. In this situation the tire production volume, and subsequent-
ly, the tire solid waste volume, would fall to the level of the number of
new cars produced each year. For 1978 this figure should represent about
40,000,000 to 50,000,000 tires per year. It is not inconceivable that those
40,000,000 to 50,000,000 tires per year could be retreaded. For an average
life of a vehicle of ten years, vehicles use after ten years of age would
provide a need for these retreaded tires. Eventually, however, 40,000,000
to 50,000,000 tires per year will require some final type of processing.
Cryogenics with use of the rubber recovered in asphalt for use in road re-
pairs can fill this need with substantial benefits to society. In fact it
seems that cryogenics with tire asphalt rubber road repairs could process all
or the 200,000,000 solid waste tires currently generated in the United States
(See Appendix D) if necessary. These three alternatives are compatible and
should form the basis of tires system management.
47
-------
REFERENCES
1. Way, George. Prevention of Reflective Cracking in Arizona Minnetonka-
East (A Case Study). Rep. No. 11, HPR-1-13(224). Arizona Department of
Transportation, Phoenix, Arizona, 1976. p 1.
2. ibid, p 3.
3. Morris, 6., and C. McDonald. Asphalt-Rubber Stress-Absorbing Membranes:
' Field Performance and State of the Art. Transportation Research Record
595, Transportation Research Board, National Academy of Sciences,
Washington, D. C., 1976. p 53.
4. ibid.
5. Morris, G. Asphalt-Rubber Membranes: Development, Use, Potential.
Arizona Department of Transportation, Phoenix, Arizona, 1975.
6. Rubber-Asphalt Binder for Seal Coat Construction. Federal Highway
Administration, 1973.
7. Wood, W. Methods of Minimizing Cracking in Bituminous Overlays. Notice
N5140.9, Federal Highways Administration, January 19, 1976. p 31.
8. Internal Report on Asphalt-Rubber. Arizona Department of Transportation,
Phoenix, Arizona, 1974. p. 2.
9. Westerman, R. The Management of Waste Passenger Car Tires. Ph.D.
Thesis, Uharton School, University of Pennsylvania, Philadelphia,
Pennsylvania, 1974. p 108. (Sum of Costs one through seven for
Alternative 4.)
10. This information was obtained from Harold M. Schmitt, Assistant Liaison
Engineer, California Division, Federal Highways Administration,
Sacramento, California, 1977.
11. Demonstration Project No. 39: Recycling Asphalt Pavements. U. S.
Department of Transportation, Federal Highway Administration, Arlington,
Virginia, undated. 2 page flyer.
12. Meadows, et al. The Limits to Growth. Second Edition, Universe Books,
New York, 1974. p 58. Meadows estimated, in 1972, adequacy of twenty
years.
48
-------
13. Rains, W., and D. Williams. A Study of the Feasibility of Requiring the
Federal Government to Use Retreaded Tires. Publication P13-243 028,
National Technical Information Service, 1975. p 93.
14. ibid, p 57. Rains refers to a figure of 100,000 miles. The 115,000
mile figure was obtained, telephonically from Mr. John Diehl, National
Highway Traffic Safety Administration, February 22, 1977.
15. Kovac, F. Tire Technology, Fourth Edition. Goodyear Company, 1973.
Figure 36 on errata, p 52.
16. Correspondence to R. Westerman from F. Cecil Brenner, Chief, Tire
Systems Division, National Highway Traffic Safety Administration, U. S.
Department of Transportation, Washington, D. C., dated March 4, 1977.
(two references).
17. Kovac, F. Tire Technology, Fourth Edition. Goodyear Company, 1973.
Figure 86, p 113.
18. Correspondence to R. Westerman from M. King, Development Project
Engineer, Oliver Tire and Rubber Company, Oakland California, dated
February 22, 1977.
19. Correspondence to R. Westerman from R. Eckart, Director, Tread Rubber
Production and Development, Mohawk Rubber Company, Akron, Ohio, dated
February 23, 1977.
20. Davisson, J. Design and Application of Commercial Type Tires. SAE SP-
344, Society of Automotive Engineers, New York, 1969. p 28.
21. Wolf, R. What's the Angle? Rubber Age Magazine, September 1967, p 64.
22. Correspondence to R. Westerman from E. Wagner, Managing Director,
American Retreader's Association, Inc., Louisville, Kentucky, dated
February 9, 1977.
23. Correspondence to R. Westerman from Dr. C. McCabe, Elastomer Chemicals
Department, E. I. DuPont de Nemours and Comapny, Wilmington, Delaware,
dated February 8, 1974.
24. Correspondence to R. Westerman from F. Cecil Brenner, Chief, Tire
Systems Division, National Highway Traffic Safety Administration,
U. S. Department of Transportation, dated March 4, 1977.
25. Intercompany correspondence to Mr. F. Taff from R. Snyder, Uniroyal,
Inc., Tire Technology Division, Detroit, Michigan, dated March 21, 1975.
Subsequent to this letter, this point was brought up at a meeting of
Snyder, Westerman, Environmental Protection Agency officials and Rubber
Manufacturers' Association officials in Washington, D. C. in the fall
of 1975, at the Office of Solid Waste Management, U. S. Environmental
Protection Agency.
49
-------
26. Philo, H., and A. Portner. 170 Million Defective Tires Per Year.
Trial Magazine, November 1976. p 51.
27. ibid, p 50.
28. Harvey, J., and F. Brenner. Tire Use Survey: The Physical Condition,
Use, and Performance of Passenger Car Tires in the United States of
America. Office of Vehicle Systems Research, Institute For Applied
Technology, National Bureau of Standards, Washington, D. C., 1970. p
29. Curtiss, W. Tire Evolution. Goodyear Tire and Rubber Company. A
paper presented at the International Automobile and Manufacturing
Meeting, October 22, 1974. p 17.
30. Data of this type are available in "Rubber Industry Facts": a set of
statistics which is maintained by the Rubber Manufacturer's Associatio
Washington, D. C.
31. Westerman, R. The Management of Waste Passenger Car Tires. Ph.D.
Thesis, Wharton School, University of Pennsylvania, Philadelphia,
Pennsylvania, 1974. p 144.
32. Big Rubber Companies Set For Comeback. Chemical Week, February 25, 19
p 13.
50
-------
BIBLIOGRAPHY
Adjustment Records Show How Failures Can Be Reduced. Retreader's Journal,
Volume 11, August 8, 1967, pp 3-11.
Aiken, Eric. Undeflated Akron. Barrow's, May 6, 1974, pp 3, 10, 12-13.
All About Tires. Tyres and Accessories, Volume 24, Number 7, January 1971,
pp 18-19.
Allison, K. Changes Reach the Retreader. Rubber World, Volume 154, Number 4,
July 1966, p 58.
Allison, K. Changes Reach the Retreader III. Rubber World, Volume 154,
Number 5, August 1966, p 67.
Allison, Kenneth. Those Amazing Rubber Roads. Rubber World, March-April
1967.
Altenau, A. G., J. R. Laman, and J. A. Beckman. Tire Disposal. Polymer
News 1, Number 2/3, 1971, p 34.
Anderson, Earl V. Economics Are Bugaboo in Scrap Tire Recycling. C/E News,
Volume 50, Number 33, August 14, 1972, pp 8-10.
Araki, T. On the Treatment by Pyrolysis of the Waste Synthetic Polymers.
Yoki Gosei Kagaku, 33(5):342-342, May 1975.
Arizona Paves 10 Miles Road with Recycled Rubber Asphalt. Environmental
Science and Technology, p 902.
Aronson, R. B. Cooking Cash from Old Tires. Mach Design, Volume 42,
Number 14, July 11, 1970, pp 46-47.
Assessing Retreadability: The Economics of the Causes of Defects and Their
Elimination. Gummibereifung, 43(11):63, November 1967.
Badenkov, P. F. Increasing the Quality of Tyres to the Highest World
Standards. Kauchuk-.Rezina, 24(10), October 1965, p 2. (English
translation by Ralph McElroy Company, Austin, Texas).
Badenkov, P. F. Reclaiming Rubber by a Dispersion Method. Rpara Transla-
tion 1746, 1971, pp 373-385.
51
-------
Badenkov, P. F., and V. A. Zhelezov. Principal Trends in Improving the Tech-
nology of Tire Production. Zh. Vscsoyuzh. Khim. Obshch, Volume 13,
Number 1, 1968, pp 13-18.
Barrass, Robert. The Pre-1968 Marketing of Automobile Tires by Gasoline
Retailers: A Problem of Market Power Generated by Franchise Agreements.
Ph.D. Thesis, Washington State University, 1973.
Batchelor, K. VI. Should the Retreader Make His Own Rubber? Retreader's
Journal, Volume 9, Number 4, April 1965, pp 3-4, 6-20.
Bayer, G., and L. Cherdor. Process and Apparatus for Disposal and Utilization
of Used Rubber and Other Combustible Wastes. French Patent 73, 30644
Issued March 22, 1973.
Becker, E. J. Latest Developments in Retreading: Cost Wear Index for Tread
Reuse Rubber Evaluation. Paper presented to Akron Rubber Group Technical
Symposium Division of Rubber Chemistry, Winter 1967.
Beckman, J. A. Distilling Scrap Rubber. U. S. Patent 3582279.
Beckman, J. A., et al. Scrap Tire Dispoal. Rubber Chemistry and Technology,
Volume 47, Number 3, July 1974. pp 597-624.
Beckman, J. A. Yields and Analyses of the Products from the Destructive
Distillation of Scrap Tires. Division of Water Waste Chemistry ACS
Reprints, Volume 10, Number 2, September 13, 1970. pp 195-202.
Belted Tires Are Better Says Chrysler Corporation. Rubber Age, Volume 100,
Number 1, January 1968. p 98.
Bernard, J. E., P. Fancher, and L. Segal. Vehicle-In-Use-Limit Performance
and Tire Factors. University of Michigan Highway Safety Research
Institute, Ann Arbor, Michigan 48105.
Bessler, Henry H., et al. Nondestructive Testing System for Retreads. NTIS
Report Number DOT-TSC-N HTSA-75-4, November 1975.
The Best Trash Disposal Is Recycling. Proceedings, Symposium on Trash
Economy and Trash Technology in the Alpine Region, Almuenster, Austria,
April 25-26, 1974.
Bibus, E. Energy from Old Tires. Energie 26(11), November 1974. pp 53-64.
Bidwell , J. B. A Car-Tire Relationship. Rev. Gen, Cnoutchouc Plastiques,
Volume 43, Number 9, September 1966. p 1153.
Big Pot. Rubber Journal, Volume 152, Number 10, October 1970. p 12.
Big Rubber Companies Set for Comeback. Chemical Week, February 25, 1976.
p 13.
52
-------
Big Wheels in Natural Rubber. Rubber Developments, Volume 23, Number 3,
1970. pp 91-95.
Biological Attack on Polymeric Materials. Mater. Plast. Elast., Volume 36,
Number 3, March 1970. pp 316-319.
Bogomolov, V. G., and A. A. Bondarenko. Semi-Automatic Tread Production Line.
Sov. Rub. T., Volume 24, Number 3, March 1965. p 45.
Bohlmann, Ferdinand, Christa Zderu. Ein Neues Eugenol-Derivat Aus Bidens
Aurea (Ait.) Sherff. Chem. Ber 108, 1975. pp 440-444.
Brand, B. G. Scrap Rubber Tire Utilization in Road Dressings. Battelle
Memorial Institute Chemistry, 505 King Avenue, Columbus, Ohio 43201.
Braner, Henry M. An Analysis of the Domestic Passenger Tire Retreading
Industry, With Emphasis on Selected Marketing Functions of Independent
Retreaders. Ph.D. Thesis, Ohio State University, 1964.
Braton, N. R., and J. A. Koutsky. Cryogenic Recycling. Proceedings, Fourth
Mineral Waste Utilization Symposium, Chicago, Illinois, May 7-8, 1974.
Brenner, F. C. Tires - Their Selection and Care. NBS Information Series
Number 2, November 1970. p 28.
Brenner, F. C., and Akira Kondo. Elements in the Road Evaluation of Tire
Ware. Tire Science and Technology, Volume 1, Number 1, February 1973.
pp 17-31.
Brenner, F. C., and A. Kondo. Research for a Uniform Quality Grading System
for Tires: IV Tread Wear. Rubber Chemistry and Technology, Volume 44,
Number 1. pp 106-121.
Brenner, F. C., S. R. Scheiner, and Akira Kondo. Effect of Tire Wear on
Wear Rate. Tire Science and Technology, Volume 3, Number 4, November
1975. pp 235-251.
Brion, 0. Tire Incinerator. U. S. Patent 3,779,183 owned by Commissariat
a L'Energie Atomique, Paris, France issued December 18, 1973.
Britain Sales Oil, Helps Balance of Payments with Reclaim. Rubber World,
Volume 171, Number 2, November 1974. p 26.
British Firm Gains Control of U. S. Retread Process. British Vacu-Lug Ltd.
Broich, Franz. Environment Control Solutions and Government Pollution
Standards in the Synthetic Rubber Industry. Proceedings 12th Annual
Meeting, International Institute of Synthetic Rubber Producers,
Australia, April 1971. pp 22-32.
Buddenhagen, F. E. Design and Construction Considerations of Radial
Passenger Car Tires. S.A.E. Preprint 670470, 1967. p 5.
53
-------
Burn Scrap Tires, Utilize Heat. Tire Review, Volume 71, Number 8, August
1970. p 70.
Bushey, R. Experimental Overlays to Minimize Reflection Cracking. California
Department of Transportation Interim Report FHWA-CA-TL-3167-76-28,
September 1976.
Bynum, D., Jr., L. C. Askew, J. F. Evertson, and H. 0. Fleisher. Effect of
Scrap Tires on the Mechanical Properties of Asphaltic Concrete in Unilax-
ial Compression. Texas A and M University, Houston, Texas.
Bynum, D., Or., L. C. Askew, J. F. Evertson, and H. 0. Fleisher. The Effect
of Scrap Rubber on the Mechanical Properties of Asphaltic Concrete in
Uniaxial Compression. Australian Road Research 5(6):December 1974.
pp 20-25.
Campbell, K. Determination of Passenger Car Tire Performance Levels -
Treadwear. Society of Automotive Engineers Publication Number 690507.
1969.
Campbera, E. M., and H. Santana. Economic Factors in Road User Costs.
University Cen De Venezuela, Highway Engineering, Caracas, Venezuela.
Can the Sun Still Shine in Akron. Financial World, July 24, 1974. p 19.
Capp, John P. Fly Ash-Rubber Mixtures: Studies on Skid Resistance and
Durability. U. S. Bureau of Mines, 1972. p 11.
Carnes, Richard A. Using Reclaimed Rubber Tires in Road Dressings. U. S.
Environmental Protection Agency, October 31, 1973. pp 1-4.
Carousel Crematireum. Rubber World, Volume 167, Number 3, March 1973.
pp 16-17.
Cavanaugh, William T. Plain Talk. Material Resource Standards, Volume 11,
Number 4. p 32B.
Chadwick, J. The Use of Reclaim Under Modern Conditions. Proceedings Inst.
Rubber Ind., Volume 13, Number 1, 1966. pp 15-23.
Cheater, G. Recycling and Reclaiming of Rubber. Progress of Rubber
Technology (38), 1975. pp 99-104.
Cheater, G., The Useful Life of Rubber. Chemistry and Industry, Number 12,
June 16, 1973. pp 569-570.
Cheater, G., and L. D. Loan. The Problem of Waste Rubber. RAPRA Technical
Review Number 37, May-June 1967. pp 48-49.
Clark, S. K., et al. Pressure Effects on Worn Passenger Car Tire Carcasses.
NTIS Report PB-241533/95T, February 1975.
54
-------
Coddington, 0. M. Improved Retread Reliability Via a New Liquid Applied Air
Barrier. Paper presented at the Division of Rubber Chemistry Meeting,
Cleveland, Ohio, October 1971.
Cole, Calvin W. Tire Repair Methods and Materials. NTIS Report PB-196952,
October 1970.
Consumer's Guide to: Retread Tires. Mechanix Illustrated, December 1975.
p 10.
Cooper, T. The Impact of the Radial Tire in the United States. MBA Thesis,
Drexel University, Philadelphia, Pennsylvania, 1973.
Cox, R. NTDRA Marketing Guidelines 1976. National Tire Dealers and Retread-
ers Association, Washington, D. C., 1976.
Cox, R. NTDRA Marketing Guidelines 1977. National Tire Dealers and Retread-
ers Association, Washington, D. C., November 22, 1976.
Cox, R. NTDRA Financial Analysis Study. National Tire Dealers and Retread-
ers Association, Washington, D. C., 1975.
Cox, W. Recycle and Reuse of Tires. Society of Manufacturing Engineers
Paper EM74-225, Dearborne, Michigan, 1974.
Cox, W. The Tire-Fired Boiler. Environmental Aspects of Chemical Use in
Rubber Processing Operations, Conference Proceedings, U. S. Environmental
Protection Agency Publication 560/1-75-002, July 1975. pp 371-380.
Crane, G., and E. L. Kay. Scrap Tire Disposal Process. Rubber and Chemistry
Technology 48(1), March-April 1975. pp 50-61.
Curtiss, W. Tire Evolution. Paper presented at the International Automobile
and Manufacturing Meeting, Goodyear Tire and Rubber Company, Akron, Ohio,
October 22, 1974.
Davisson, J. A. Design and Application of Commercial Type Tires. Society
of Automotive Engineers Paper SP 344, New York, 1969.
Dayton Tire Boosts Radial Production. Rubber World, November 1974. p 16.
Dealer's Business Booming, Tire Review. 1975.
D'lanni, James. Our Changing Environment - A Challenge to Technology.
Paper presented at Joint Meeting of New York and Philadelphia Rubber
Groups, April 1970.
Disposal of Automobile Tires - Economically. Rubber Age, Volume 102,
Number 9, September 1970. p 85.
Downwind, Akron Stinks. Rubber World, Volume 161, Number 1, December 1969.
pp 50-53.
55
-------
Dreyfus, B., and L. Tourlec. Raw Material Requirements for the Tire Companies
in the 70's. ABST. J. IRI, Volume 5, Number 3, 1971. p 87.
DuPont, E. I. DeNemours and Company, Inc. Delphi Forecast of Future Rubber
Processing. DuPont Company Elastomer Chemicals Department, Wilmington,
Delaware, 1971.
Dworkin, David. Tires. Chemical Week, Volume 108, Number 20. pp 34-40.
Ehrlich, I. R., and M. Jurkat. Characteristics of Tire Usage in the Eastern
United States. Research Report 1336-A, Division Laboratory, Stevens
Institute of Technology, 1969. p 14.
Ehrlich, I. R., I. 0. Kamm, and M. P. Jurkat. Feasibility Study of a Trailer
Method of Tread Wear Evaluation. School of Engineering, Stevens Insti-
tute of Technology, Hoboken, New Jersey 07030.
Evaluating Retreadability. Gummibereifung, 44(4), April, 1968. p 63.
Evans, C. W. Mixing Techniques in Europe (Equipment, Process, Compounding
Aspects). Rubber Preprints (39), April 1969.
Ewing, J. The Feasibility of Marketing the 100,000 Mile Tire. MBA Paper,
California State University Sacramento, School of Business and Public
Administration, 6000 J Street, Sacramento, California 95819, 1977.
Fabrikaut, A. Flotation Agents by Pyrolysis of Vulcanized Rubber Scrap.
Chem. Phys. Appl. Surface Active Subst. Proc. Congr. 4th, 1964.
pp 371-377.
Facts About Tires. Tire TBA Review, Volume 66, Number 2, February 1966.
p 16.
Fendell, B. New Styling Roll Seen for Tires. Automotive News, Volume 16,
Number 4324, March 15, 1971.
Fewer and Lower Chemical Price Increases. U. S. and World Rubber News,
March 1976. p 11.
Ficker, S. Reclaiming Scrap Rubber. Rubber Age, Volume 104, Number 8,
August 1972. pp 53-55.
Fink, F. Disposal of Old Tires and Processed Remains of Wrecked Cars.
Battelle Inf., Number 7, Oune 1970. pp 35-37.
Finney, C. S., and D. E. Garrett. The Flash Pyrolysis of Solid Wastes.
Energy Sources, Volume 1, Number 3, 1974. pp 295-314.
Fike, L. T. Retreading Specifications. Tire Review, Volume 67, Number
1:64R, January 1967.
56
-------
Firestone to Shut Down Reclaiming Plant. Wall Street Journal, January 27,
1972. p 3.
Fish Hooked on Old Tires. Goodyear Tire and Rubber Company, Polysar Prog.
Volume 5, Number 5, September/October 1970. p 7.
Flanagan, William. Another Way to Recycle Old Tires. SAE J. Volume 78,
Number 12, 1970. p 43.
Flanagan, William. Tires Could Be Recycled if Process Proves Economical.
SAE J. Volume 78, Number 8, 1970. pp 35-37.
Fleeger, D. W. Tire Wear Index Test. Service Engineering Division, Ogden
Air Material Area, Hill Air Force Base, Utah.
Floberg, J. F. Economics of Regulated Safety II. Rubber World, Volume 164,
Number 1, April 1971. pp 55-58.
Ford Investigates Tire Pollution. Rubber Age, Volume 104, Number 3, March
1972. p 90. J
U
Forelich, L. Old Tires Are Fuel at New Tire Plant. Akron Beacon Journal 3
E-3, April 27, 1972. C
Q
Fox, C. Reconditioning of Aircraft Tires. Rubber Developments, Volume 18, ]
Number 4, August 1965. p 149.
U
Fredericks, S. An Economic Evaluation of the Use of Cryogenics in Rubber p
Tire Reclaiming. University of Wisconsin-Madison, College of Engineer- »
ing, Madison, Wisconsin, Undated. |
Gagarina, N. S. Cost Planning in the Tire Industry. Kauchuk Rezina, 2S (9): £
44, September 1966. jj
Gal'Perin, A. S. Selection of the Optimum Height of a Repair Tread for
Tractor Tyres By Dynamic Programming. Kauchuk Rezina, Volume 24,
Number 12, December 1965. p 32.
Goddard, Haynes C. An Economic Evaluation of Technical Systems for Scrap
Tire Recycling. U. S. Environmental Protection Agency, Washington,
D. C. 41 p.
Goodrich to Install Computer Storage of Tire Specifications. Rubber Age,
Volume 102, Number 11, November 1970. p 86.
Goodyear Uses Scrap Tires as Fuel to Generate Steam. Rubber/Plastics News,
May 8, 1972. p 16.
Gorenstein, S. Planning Tire Production. Management Science, Volume 17,
Number 2, October 1970. pp 72-82.
57
-------
Gottshall, Wm. W. Reinforcing Agent. U. S. Patent 3,644,131 issued
February 22, 1972.
Graham, John. Radial Tire Equipment. Rubber Age, September 1974. pp 33-39.
Greene, C. H. Industrial Pollution Control. Modern Manufacturing, Number 9,
1970. pp 167-168.
Ground-Up Tires Keep Out Weeds. Akron Beacon Journal, February 22, 1972.
p A 17.
Harvey, J. L., and F. C. Brenner. Tire Use Survey. National Bureau Standards
Technical Note 528. p 59.
Heap, Wendy, and S. H. Morrell. Microbiological Deterioration of Rubber and
Plastics. Journal of Applied Chemistry, Volume 18, Number 7, July 1968.
pp 189-194.
Heaton, J. W., and W. E. Fawcett. Method and Apparatus for Removing Tread
**"'' Material from Vehicle Tires. U. S. Patent 3,888,145 issued June 10,
£..:'• 1975, Kennametal, Inc., Latrobe, Pennsylvania.
.•i'.' Highway Median Strip. Goodyear Tire and Rubber Company, 1971.
• • Hofmann, W. Some Problems with the Disposal of Rubber Wastes. Paper
presented at the Conference of the American Chemical Society, Division
•j£" of Rubber Chemistry, Toronto, Canada, May 9, 1974. 34 p.
•it:!' How to Figure Profitability on Your Equipment. Tire Review, May 1975. p 16.
How to Retread Radial Ply Tires. Tire Review, Volume 67, Number 1, January
1967. p 54.
Huber, C. F. The Tire Companies: Can They Shake Detroit and Make More
Money? Rubber World, Volume 154, Number 3, December 1967. p 53.
Humpstone, C. C., E. Ayres, S. C. Keahey, and T. Schell. Tire Recycling and
Reuse Incentives. U. S. Environmental Protection Agency, Office of
Solid Waste Management Programs, 1974. 88 p.
Imazu, S. Thermal Decomposition of the Waste Tires. Sangyo Kikai (299),
August 1975. pp 37-40.
The Industry at Midyear. Rubber Age, July 1975. pp 30-31.
Ingegnere, C. M. Europe Leads in Tyre Research. Australian Plastics and
Rubber Journal, 25(Number 300), July 1970. pp 19-20, 31.
Intermixing of Bias, Bias/Belted, and Radial Ply Passenger Tires. Systems
Technology Associates, Inc., 13766 S. Hawthorn Boulevard, Hawthorne,
California 90250.
58
-------
Investment Mileage from Radials. Chemical World, May 23, 1973. p 7.
Isaksson, G. E. Production Equipment Demands. Rubber Age, Volume 104,
Number 6, June 1972. pp 38-42.
Jones, A. J. Tread Rubber Manufacturing. Rubber World, Volume 144, Number 1.
p 89.
Jones, P. B., and R. Garfield. Technology and the Retread. Journal Institute
Rubber Industry, Volume 3, Number 5, October 1969. pp 209-213.
Judging Suitability for Retreading. Gummibereifung, Volume 41, Number 9,
September 1965. p 86.
Kaiser, Elmer R. Incineration of Bulky Refuse Without Prior Shredding. New
York University, 1973. 91 p.
Keeping Cows Happy. Goodyear Tire and Rubber Company, 1971.
Kelner, M. Stop Murder by Motor. American Trial Lawyers Association,
Boston, Massachusetts, 1966. Reprinted in Tire and TBA Review,
February 1966. p 24.
Keubler, J. Goodyear's New Tire Company President, Mercer, Sees an End to
Guaranteed Mileage on Tires. Rubber World, September 1976.
Khrapunov, L. G. A Method of Increasing the Life of Tubeless Truck Tires.
Kauchuk i Rezina 21(2), 1962. pp 26-28. (English translation by
Ralph McElroy Company, Austin, Texas.)
Kiefer, Irene. Incentives for Tire Recycling and Reuse. U. S. Environmental
Protection Agency, 1974. 28 p.
Kispert, R. G., L. C. Anderson, D. H. Walker, S. E. Sadek, and D. L. Wise.
Selection of Base-Line Inputs for Optimization: Ranges of Input
Variables. Dynatech R/D Company, Cambridge, Massachusetts, July 31,
1974.
Knox, R. L. Workable Competition in the Rubber Tire Industry. The Univer-
sity of North Carolina, Chapel Hill, North Carolina.
Kovac, F. J. Tire Design Engineer Turns to Technological Forecasting.
Production Engineering, Volume 41, Number 27. pp 16-17.
Kovac, F. J. Tire Technology. Goodyear Tire and Rubber Company, Akron,
Ohio, 1970. 100 p.
Kritskov, V. F., and S. N. Ragimov. The Economics of the Production and Use
of Radial Ply Tires. Kauchuk i Rezina, Volume 28, Number 10, 1969.
(English translation by Ralph McElroy Company, Austin, Texas.)
59
-------
Kuebler, Joseph E. COLC Lifts Lid on Tire Prices. Modern Tire Dealer, March
1974. p 34.
Kuebler, J. Goodyear's New Tire Company President, Mercer, Sees an End to
Guaranteed Mileage on Tires. Rubber World, September 1976.
Kuebler, Joseph E. Tire Sales $ Volume Up - But Profits Prove Elusive.
Rubber World, September 1975. p 67.
Kuebler, Joseph E. Turkish Tire Plant to be U. S. Equipped. Rubber World,
August 1975. PP 47, 51.
Lane, G. H. The Case Against Burning Used Tires. Rubber Journal, Volume
150, Number 2, February 1968. pp 44, 59.
Lanius, E. H. Tire Deposit As Incentive: Old Car Tires Shall Yield Valuable
Raw Material Through Pyrolysis. VDI-Nachrichten Z8(39), September 1974.
P 7.
Laverty, C. General Tire Automates Big Tire Plant. Rubber World, Volume 159,
*f. Number 5, February 1969. p 39.
''^ Laverty, C. Water Pollution Controls: A $5 Billion Tab. Rubber World,
:^ '' Volume 160, Number 1, April 1969. pp 48-50.
f:,: i
''''"_'' Lavery, A. Nondestructive Tire Testing. U. S. Department of Transportation
Systems Center, 55 Broadway, Cambridge, Massachusetts.
. 4
;T / Law, Charles. Design Revolution Rocks the Tire Industry. Rubber World,
•'*-••— Volume 159, Number 6, 1969. pp 34-43.
,.,,;.- Lehnen, J. P. Tire Manufacturing Machinery and Process Engineering.
.'#»"•'>', Kunststoff Gumrni 6(1), January 1967. p 5.
M i, !
Lerner, M. Musing With Mel. Rubber Age, July 1975. p 16.
The Longer-Wearing Tire. Tire Review, Volume 71, Number 7, July 1971.
pp 13, 16, 21, 68.
Lowne, R. W. Tyre Failures on Part of M5 Motorway. NTIS Report Number
TRRL-LR-585, 1973.
Lucas Furnace Developments Ltd. Tire Scrap. Plastic Rubber Weekly, Number
353, November 13, 1970. pp 34-35.
Ludema, K. C. Wear Models for Severe Wear of Polymeric Materials. School of
Engineering, University of Michigan, Ann Arbor, Michigan 48106.
Ludwig, Saul H. Bicentennial Year - Boom or Bust? Modern Tire Dealer,
January 1976. pp 52-60.
60
-------
Lueers, U. Disposal and Recycling of Tire Waste. Gummi Asbest Kunstst
Volume 28, Number 12, December 1975. pp 860-867.
Mahner, K. Data for Determining Tire Substitute Requirements Under the In-
fluence Exerted by the Development of the Tire Quality. Plaste Kaut
Schok, Volume 16, Number 1, January 1969. p 31.
Marchesani, Vincent J. Minor Sources of Air Pollutant Emissions. Air Pollut
Contrass. J., Volume 20, Number 1, 1970. pp 19-22.
Mares, A. The Use of Computers for Technical and Economic Calculations in
Tire Factories II. Kautsckuk Gummikunstoffe, Volume 21, Number 8,
August 1966. p 443.
Martin, G. A. Tack Loss in Tire Tread Stocks. Paper presented at Southern
Rubber Group Meeting, Dallas, Texas, February 1971.
Marzocchi, Z. Glass Fiber Impregnated Yarns' Retread Potential. Rubber
World, Volume 158, Number 6, September 1968. p 67.
Massoubre, J. M. Reclaiming NR or SR. U. S. Patent 3,563,922 issued
February 16, 1971.
Maus, Erwin III. Delete-Optioned Radials? No Panic in Tire Town. Wards
Auto World, April 1975. p 20.
Modern Equipment Boosts Production. Tire Review, Volume 67, Number 7,
July 1968. p 68.
More Mileage from Old Tires? Chemical Engineering 1976, Number 23, October
1969. pp 58-59.
More Uses for Scrap Casings. Modern Tire Dealer, Volume 50, Number 6,
January 1969. pp 10-11.
Morris, G. Asphalt-Rubber Membranes Development, Use, Potential. Arizona
Department of Transportation, Phoenix, Arizona, 1975.
Morris, G., and C. McDonald. Asphalt-Rubber Stress Absorbing Membranes:
Field Performance and State of the Art. Transportation Research Record
595, National Academy of Sciences, Washington, D. C., 1976. pp 52-58.
Morton, C. F. Factors Influencing Tyre Development. Journal IRI, Volume 4,
Number 4, August 1970. pp 145-152.
Morton, G. F. Tire Design. Proc Inst. Rubber Ind., Volume 13, Number 6,
December 1966. p 214.
Moyer, R. A. Tire Wear and Cost on Selected Roadway Surfaces. Iowa Engineer-
ing Experiment Station, Ames, Iowa.
61
-------
Muller, W. Retreading of Radial Ply Tires. Gummi Bereifung, Volume 46,
Number 5, May 1970. pp 126, 128.
McEwen, L. Tire Disposal and Recovery. U. S. Environmental Protection
Agency, Office of Solid Haste Management, Washington, D. C., 1974.
McLain, J. M. The Theory of the Firm and Competition in the American Rubber
Industry. Ohio State University.
Nadezhdin, G. V. Main Design Parameters of Tyres for Motor Vehicles. Sov.
Rub.T., Volume 24, Number 1, January 1965. p 29.
National Standard's New Line in Tire Machines. Rubber Journal, Volume 152,
Number 10, October 1970. pp 37-38.
NBS Surveys Tire Usage. NBS Technical News Bulletin, Volume 54, Number 10,
October 1970. p 229.
New BFG Division. Rubber World, July 1974. p 34.
*?,'' New Method for the Collection of Tires. GAK, Volume 28, Number 1, 1975.
*-"• p 40.
«.«-. r
^'- ; New Recycling Methods for Waste Tires. Raba Daijesto, Volume 27, Number 4,
(•'9, April 1975. pp 43-47.
,1.. Nikolinski, P. Complete Re-utilization of Rubber Vulcanizates. Review
:*"•' Generate Caoutchouc Plastique, Volume 45, Number 5 7/8, 1968. pp 867-
£ij 87°-
Nittan Company Limited. Precede Pout Fabriquer Une Mattere Oleo-Collectrice.
..IVi:|. French Patent 73,36612 issued May 10, 1974.
& "• i
{T'jj | Noble, H. M. Wave-Maze, Floating Breakwater. ASCE Proc. Civil Engineering
'" '' in Oceans, 2nd Conference, Miami, Florida, December 10-12, 1969.
pp 929-942.
Ochs, G., and K. Coram. Scrap Tire Utilization and Disposal. Franklin
Institute Research Laboratories Publication DAAK03-75-C-0031, Rockville,
Maryland. Undated.
Old Tires Yield Chemicals. Chemical Marketing Reporter, 205, June 17, 1974.
pp 3, 18.
O'Rourke, J. J. Oregon Tire Disposal Rule to Be Model for Nation? Tire
Review, Volume 73, Number 12, December 1973. p 32.
Pacey, Margaret D. On the Bandwagon. Barren's, August 9, 1971. pp 11, 19,
20.
Pacey, Margaret D. Technology Is Opening Up New Markets for Tire Retreaders.
Barren's, August 9, 1971. pp 11-12, 21.
62
-------
Palmgren, Hans. Scrap Rubber and Its Waste Problems. Paper presented at the
SGF Environment Conference, June 1972.
Palmgren, H. Waste Rubber As A Disposal Problem. Plastvarlden, Number 6,
June 1972. pp 28-31.
Passenger Tire Use Survey. Consolidated HBS Report CSF398 PB 189487. Undated
Pearson, Henry C. Rubber Tires and All About Them. The India Rubber Publish-
ing Company, New York, 1906.
Pettigrew, R. J. Rubber Reuse and Solid Waste Management. U. S. Environment-
al Protection Agency, Solid Waste Management Series (SW-22c) "Rubber
Reuse and Solid Waste Management, 1971.
Philipson, I. R. Incineration Scrap Tyres for Energy. Australian Plastics
and Rubber, Volume 26, Number 28, August 1975. p 31.
Philo, H., and A. Portner. 170 Million Defective Tires Per Year. Trial
Magazine, November 1976. pp 50-53.
Pickett, F. N. Distillation Products from Waste Rubber. Trans. Inst.
Rubber Ind., Volume 15, 1940. pp 340-342. •*>
iw
Pierson, W. R. Search for Airborne Particulate Debris from Rubber Tires. '*J
Paper presented at the Division: Water, Air and Waste Chemistry, 162nd j
ACS Meeting, Washington, D. C., September 1971.
Pierson, W. R., and W. W. Brachaczek. Airborne Particulates Debris from '"*
Rubber Tires. Rubber Chemistry and Technology, Volume 47, Number 5,
December 1974. pp 1275-1299. j
f
Plunkett, Dick. Disposing of Scrap Tires. Rubber World, Volume 172, "*
Number 6, September 1975. pp 61-64. j
Potamoshnev, S. P., and G. G. Ivanov. Measuring Labor Productivity in the
Tire Industry. Kauchuk i Rezina, Volume 20, Number 4, 1961. pp 49-53.
(English translation)
Price Hikes Don't Worry Dealers. Modern Tire Dealer, March 1974. p 27.
Prices Hiked. Rubber Age, May 1974. p 86.
Prices Up On Most Tires and Tubes. Modern Tire Dealer, March 1974. p 9.
Process for Utilizing Scrap Tires in Carbon Black Manufacture. Columbian
Division - Cities Service Company, April 1971.
Producing Carbon Black By Pyrolising Tyre Crumb Containing Fibres. European
Rubber Journal, Volume 154, Number 8, August 1975. p 16.
63
-------
Production Conditions and Service Life. Gummifereifung, Volume 45, Number 7,
July 1969. p 27.
Production Conditions and Service Life. Gummifereifung, Volume 45, Number 8,
August 1969. p 17.
Prolonging Life Through Proper Care of Tires. Solid Waste Management, Volume
16, Number 8, August 1973. p 72.
Prospects for Reclaimed Rubber. Polymer Age, Volume 6(7-8), July/August 1975.
p 214.
Rachkova, L. V. Development in the Tire Retreading Industry. Kauchuk i
Rezina, Volume 26, Number 7, July 1967. p 2.
Rains, W. A. A Study of the Feasibility of Requiring the Federal Government
to Use Retreaded Tires. U. S. Environmental Protection Agency,
Washington, D. C. , 1975. 122 p.
Recycling of Waste Tires (1) - The Present Situation of Pyrolysis Technology.
Kagaku Kojo, Volume 19, Number 2, February 1975. pp 90-93.
Recycling of Wastepaper and Economical Recovery of Used Tires. Mitteilungen
Des Chemischen Forschungs Institutes Der Wirtschaft Oesterreichs Und
Des Oesterreich Ischen Kunststoff institutes, 28(515), December 1974.
pp 179-180.
Recycling Old Motor Tyres. Water and Waste Treatment, Volume 18, Number 6,
June 1975. pp 24, 26.
Retread Standard for Passenger Tires. Tire Review, Volume 73, Number 3,
March 1973. pp 81-82.
";j|: Retreading Can Set Records in '75 - $1,200,000,000 and Growing. Tire Review,
u"11" May 1975. pp 13-15.
Retreading in Italy. Tyres and Accessories, Volume 22, Number 263, June
1968. pp 33-34.
Retreading of Michelin X Tires. Gummibereifung, Volume 37, Number 2, 1961.
pp 15-16, 18.
Retreading's Future Looks Pretty Good. Tire Review, April 1975. pp 48-49,52.
Reutens, Anthony J. An Econometric Analysis of the International Rubber
Economy. Ph.D. Thesis, University of Illinois at Urbana, Champagaion,
1974.
1974 Review-1975 Preview. Rubber Age, January 1975. pp 24-33.
Review 74-Preview 75. Rubber Age, January 1975. pp 34-38.
64
-------
1975 Review-1976 Preview. Rubber Age. January 1976. pp 26-28.
Rivoire, J., and J. N. Winton. Energy and the Product Mix. Chemical Week,
Volume 115, Number 22, November 27, 1974. pp 29-32.
Roland, R. D. Tire Properties, Effects on Vehicle Handling. Calspan
Corporation, 4455 Genesee Street, Buffalo, New York 14221.
Rubber. Sub-council Report, National Industrial Pollution Control Council,
Washington, 0. C., October 1971. 15 p.
Rubber Age Visits a Giant Tire Plant. Rubber Age, Volume 9, Number 4,
April 1966. p 82.
Rubber Aids Plant Growth. C/E News, Volume 50, Number 9, February 28, 1972.
pp 57.
Rubber Chemicals Ride Retread Boom. Chemical Week, May 14, 1975. pp 29-30.
Russia's Tire Industry - An Overview. Rubber World, Volume 161, Number 2,
1969. pp 57-63.
Sackett, G. Quality Control in Retreading. NTDRA Dealer News, Volume 31,
Number 28, July 8, 1968. pp 7, 10.
Saeke, Y. and G. Suzuki. Fluidized Thermal Cracking Process for Waste Tires.
Rubber Age, Volume 108, Number 2, February 1976. pp 33-40.
Sakagami, J. Foy Type Waste Tire Treatment Plant. Kankyo Gijutsu, Volume 4,
Number 8, 1975. pp 585-591.
Sanga, Y. Method of and Apparatus for Productin Activated Charcoal from
Waste Tires. U. S. Patent 3,875-077 issued April 1, 1975.
Samsom, R. The Automobile as a Social Machine. Paper delivered at the
International Automotive Engineering Congress, U. S. Environmental
Protection Agency, Washington, D. C., January 10, 1973.
Saul Ludwig Predicts 5.5% Car Tire Growth. Rubber World, January 1976. p 9.
Sawa, K. Apparatus for Pulverizing Vulcanized Rubber and Rubber Products.
U. S. Patent 3,889,889, Kobe Steel Limited, Kobe, Japan issued June
17, 1975.
Schnecko, H. On Recycling Methods of Waste Tires. Kautschuk und Gummi,
Volume 27, Number 12, December 1974. pp 526-534.
Schnecko, H. Ueber Verwertungs - Moeflichkeiten von AHreifen (Possible
Utilization and Recovery of Used Tires). Kautschuk und Gummi -
Kunststoffe, Volume 27, Number 12, 1974. pp 526-530, 532, 534.
65
-------
Schultz, Mort. Wear, Oh, Where Has My Tire Tread Gone? Popular Mechanics,
March 1975. pp 130-133.
Scott, John A. A Feasibility Study of Cold Process Retreading and Its
Adaptability to the Army Maintenance Program. NTIS Report USAML-ITC-
2-73-21, March 1973.
Scrap Recovery and Size Reduction Equipment. PRT Polymer Age, Volume 3,
Number 3, March 1972, pp 110-111.
Scrap Tire. Committee for Retrieval and Reuse of Wastes, Ministry of Inter-
national Trade and Industry, Haikibutsu No Shigenka, September 15, 1974.
pp 80-88.
Scrap Tires Eyed As Oil Source. Purchasing, January 7, 1975. p 18A.
Scrap Tires May Help Pave Roads. Engineering and Contract Record, Volume 88,
Number 3, March 1975. p 3.
,„ Search, W., and T. Cturtnicek. Disposal Techniques for Tires and Other
,?.'.'' Polymeric Materials. Monsanto Research Corporation, 1515 Nicholas Road,
«: Box 8, Dayton, Ohio 45407.
>••-' Sears, J. Retreading and the 100,000 Mile Passenger Car Tire. Rubber
->' Manufacturers Association, Washington, D. C., April 2, 1975.
Setright, L. F. K. Automobile Tyres. Chapman and Hall, London, 1972.
«•:•!'
"i Sherman, I. A. Collecting and Recovering Waste Rubber. India Rubber World,
*-?i' Number 6, April 15, 1892. pp 201-202.
,;-.- Single Stage Machines Build Radial Passenger, Truck Tires. Rubber World,
";;; Volume 163, Number 5, February 1971. p 78.
mil I
-------
Strongin, M. , and N. Gorkina. Methods of Increasing Tyre Life. Soviet Rubber
Technology, Volume 31, Number 6, June 1972. pp 42-43.
Strong Opposition to "Retreadable" Label. Tire Review, Volume 71, Number 2,
February 1971. pp 40-41.
Study on the Retrieval of Resources from Waste Tires - Present State of
Pyrolysis. Kagaku Kojo, Volume 19, Number 3, March 1975. pp 93-95.
Subramani, 0. P. Particulate Air Pollution from Automobile Tire Tread Wear.
Ph.D. Thesis, University of Cincinnati, May 1971. 188 p.
Szilard, J. A. Reclaiming Rubber and Other Polymers. Noyes Data Corporation,
Park Ridge, New Jersey, 1973.
Taggart, R. Shredded Tires as an Auxiliary Fuel. Environmental Aspects of
Chemical Use in Rubber Processing Operations, Conference Proceedings,
U. S. Environmental Protection Agency Publication 560/1-75-002, July
1975. pp 361-370.
Taylor, I. M. Chaos Among Curing Rates. Modern Tire Dealer, Volume 50,
Number 5, December 1968. pi.
Taylor, I. Improve Product Uniformity. Modern Tire Dealer, Volume 49,
Number 10, May 1968. pp R3, R5, R7.
Taylor, I. Only the Slackers Need Fear Retreading Standards. Modern Tire
Dealer, Volume 51, Number 11, June 1970. pp 1, 3, 5.
Taylor, I. Retread Standard 117 Is Tough, But Not Impossible. Modern Tire
Dealer, Volume 52, Number 11, June 1971. pp 1-3.
Teknekron, Inc. Factors Influencing Product Durability. Resource Conserva-
tion, Resource Recovery, and Solid Waste Disposal, U. S. Senate
Committee on Public Works, Serial Number 93-12, U. S. Government
Printing Office, Washington, D. C., 1973.
Thomsen, I. B. People Hate to Buy Tires. Tyres and Accessories, Volume 23,
Number 10, April 1970. pp 36-37, 39.
Tire Disposal. Battelle Research Outlook, Volume 3, Number 2, 1971. p 37.
Tire Disposer Now Available. Tire Review, Volume 73, Number 1, January 1973.
p 34.
Tire Makers File Suit as NHTSA Issues Standards for Grading Tires. Tire
Review, p 60.
Tire Mathematics Symposium. Akron Rubber Group, Division of Rubber Chemistry,
ACS, Spring 1971.
67
-------
Tire Pollution Breakthrough. Australian Plastics and Rubber, Volume 24,
Number 2, February 1973. p 37.
Tire Reefs Spawn New Fishing Grounds. Chemical Week, March 20, 1974. p 31.
Tire Research: New Role for Government. Modern Tire Dealer, Volume 59,
Number 7, February 1968. pp 35-36.
Tire Safety - and Value - On the Road. Rubber Developments, Volume 18,
Number 4, 1965. p 138.
Tire Safety Gets a Heavier Tread. Business Week, Number 2167, May 15, 1971.
p 124.
Tire Sales Should Climb, But Strike Threat Clouds Outlook. Industry Week,
February 2, 1976. p 44.
Tire Treadwear Test. South Texas Tire Test Inc., Devine, Texas.
,'?! Tire Treadwear Validation. Hodges Transportation Inc., N. Plaza Street,
fc: Carson City, Nevada 89701.
£;!,, Tires. Consumer Reports, Volume 26, Number 8. pp 472-477.
O;'
Tires, A Review of Current Constructions, Development, Performance. Auto
Engineering, Volume 59, Number 8, July 1969. pp 274-289.
?•"••• Tires and Wheels. Fleet Owner, June 1974. pp 198-200.
a:
Tires: Bias-Ply and Belted-Bias. Consumer Reports, October 1974. pp 712-
715.
••>••,.'!
£;!!''• Tires Pave Way to Better Roads. Purchasing, January 21, 1975. p 14.
Tires - Scrap. Akron Beacon Journal, February 16, 1972. p 4.
Tires - Scrap. Akron Beacon Journal, September 16, 1973.
Tires - Scrap. Chemical Engineering, October 18, 1971. p 76.
Toles, G. E. Firestone to Build Tire Coking Plant. Rubber Journal, Volume
152, Number 10, October 1970. p 92.
Tomihisaik. On Recycling of Rubber. Raba Daijesuto, Volume 26, Number 11,
November 1974. pp 2-13.
Toyotate, K. LNG Utilization for Low Temperature Crusher - Waste Tire Rubber
Plastics. Kogyo Zairyo, Volume 23, Number 8, August 1975. pp 68-72.
Trend of American Business. U. S. News & World Report, January 5, 1976. p 5.
68
-------
Truck Retread Process. Modern Tire Dealer, Volume 53, Number 5, October 1971.
P 4.
Truck Tire Symposium. Rubber World, Volume 153, Number 6, March 1966. p 71.
Truck Tires Through Punched Programmed Cards. Kelly Springfield Tire Company,
Rubber Age, Volume 99, Number 6, June 1967. p 81.
Trusov, A. D. Methods of Reducing Production Costs in the Tire Industry.
Kauchuk i Rezina, Number 1, January 1966. p 42.
Tyre Pyrolysis Caused Reservoir Pollution. Surveyor, Volume 146, Number 4339,
August 8, 1975. p 3.
Tyre Technology - Pace Maker in the Building Trade. Gummibereifung, Volume
44, Number 2, February 1968. pp 26-32, 35.
U. S. Department of Transportation, Demonstration Project No. 39. Recycling
Asphalt Pavements. Arlington Virginia. Undated flyer.
U. S. Environmental Protection Agency, Office of Solid Waste Management
Programs, Abraham, D. G., Saunders, W. B., and Woodall, T. G. Industry-
Commodity Analysis; Reclaimed Rubber Industry: I In Transportation
Rates and Costs for Selected Virgin and Secondary Commodities.
U. S. Environmental Protection Agency, Washington, D. C. Brand, Benson G.
Scrap Rubber Tire Utilization in Road Dressings. 1974. 44 p.
U. S. Environmental Protection Agency, Solid Waste Management Series (SW-22c)
Pettigrew. Rubber Reuse and Solid Waste Management. 1971.
Vershinin, U. S. Determination of the Effective Use of the Production
Potential of Tire Works. Kauchuk i Rezina, Volume 25, Number 4,
April 1966. p 36.
Vostrokunto, V. Statistical Method of Determining the Safe Service Life of
Retreaded Tyres. Soviet Rubber Technology, Volume 24, Number 2,
February 1965. p 36.
Vostroknutov, E. G. Statistical Method of Predicting the Mean Life of
Retreaded Tyres. Kauchuk i Rezina, Volume 25, Number 4, July 1966.
p 40.
Wagner, E. J. Can Money Be Made In Retreading? Tire Review, p 102.
Wagner, E. Retreadonomics. Retreaders Journal, Retreading Consultant
Services Inc., Louisville, Kentucky, May 1975 and May 1976.
Wakabayaski, K., S. Tomita, S. Hayakawa, and T. Ono. Systems Design for a
Waste Disposal Center. Anzen Kogaku, Volume 14, Number 3, 1975. pp 143-
150.
69
-------
Wake-field, R. Tires, Tires, Tires, High Performance Tires. Road and Track,
Volume 21, Number 1, September 1969. pp 61-76.
Warner, Stanley L. Innovation and Research in the Automobile Tire and Tire
Supporting Industries. Ph.D. Thesis, Harvard University, 1970.
Wassull, K. Sensitivity of Underheating of Unvulcanised Tread Strips.
Gummibereifung, Volume 42, Number 2, February 1966. p 72.
Waste Tire Use. Goodyear Tire and Rubber Company, September 25, 1970.
Waste Tyres - New Disposal Systems. European Rubber Journal, December 1974.
p 20.
Watson, Mike. Retreads: They Should Wear Out, Not Blow Out. Tire Review,
Volume 72, Number 7, July 1972. pp 88-90.
Watson, S. R., and R. V. Brown. Case Studies in the Value of Decision
Analysis. National Technical Information Service Report TR-75-10,
October 1975.
Way, George. Prevention of Reflective Cracking in Arizona Minnetanka - East
(A Case Study). Arizona Department of Transportation, Phoenix, Arizona,
1976.
Westerman, R. The Management of Waste Passenger Car Tires. Ph.D. Thesis, The
Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania,
1974.
Winchester, G. W. Adjustment Records Show How Failures Can Be Reduced.
Retreader's Journal, August 1967. pp 3-11, 14-17.
Winchester, G. W. Change To Round Buffing Cuts Out Many Failures In Retread-
ing. Tire Battery Accessory News, Volume 25, Number 3, 1962. pp 34-35,
48.
Winchester, G. W. How Simple Changes In Retread Production Reduced Failures
From 10% To Less Than 1%. Tire Battery, Accessory News, Volume 23,
Number 7, 1960. pp 18-20, 45.
Winchester, G. W. How To Discover and Correct Causes Of Retread Separation.
Tire, Battery Accessory News, Volume 22, Number 10, 1960. pp 30-32.
Winchester, G. W. New TBA News Research Shows Undercures Cause Many Retread
Failures. Tire, Battery Accessory News, Volume 24, Number 8, 1961.
pp 22-24, 42.
Winchester, G. W. Review of Current Retread Problems. Tire, Battery
Accessory News, Volume 25, Number 8, 1962. pp 18-19, 38.
Winchester, G. W. What Is Your Matrix Surface Temperature. Retreader's
Journal, May 1968. pp 3-10.
70
-------
Whitaker, H. R. New Uses For Old Tires. Science Digest, October 1974.
pp 66-68.
Whittaker, M. P., and L. I. Grindstaff. Production of Activated Carbon From
Rubber and a Carbonaceous Binder. U. S. Patent 3,822,218 owned by Great
Lakes Carbon Corporation issued July 2, 1974.
Wolf, R. F. What's The Angle? Rubber Age, Volume 99, Number 9, September
1967. p 59.
Wolf, Ralph. Goodyear Shreds Scrap Tires For Tire Turf. Rubber Age, Volume
104, Number 3, March 1972. p 103.
Wolf, R. What's New In Tires? Not Very Much. Rubber Age, December 1967.
pp 60-68.
Wolfson, D. E. Destructive Distillation of Scrap Tires. U. S. Bureau of
Mines, Washington, D. C., 1969.
Wolk, H. Study of the Technical and Economic Feasibility of a Hydrogenation
Process For Utilization of Waste Rubber. U. S. Environmental Protection
Agency, 1973. 142 p. (Hydrocarbon Research Incorporated, Trenton, New
Jersey.)
Wolk, Ronald H., Michael C. Cherubnak, Carmine A. Battista. Hydrogenation of
Waste Tires. Rubber Age, June 1974. pp 27-38.
Wood, W. Methods of Minimizing Reflection Cracking In Bituminous Overlays,
Federal Highway Administration Notice (Attachment) N5140.9, January 19,
1976.
Yamashita, I., N. Yamamoto, and S. Mima. Degradation of Scrap Rubber By
Microwave. Bulletin of the Government Industrial Research Institute
24(2), June 1973. pp 75-79.
Yamashita, S., N. Kawabata, M. Moriki, and T. Fojii. The Conversion of
Vulcanized Rubber to Liquid Rubber. Proceedings: 31st Fall Meeting of
the Chemical Society of Japan, October 1974.
Yashunskaya, F. T., and S. P. Potamoshnev. A Method For Comparing Productiv-
ity In The Tyre Industry. Kaushuk i Rezina, Volume 24, Number 10,
October 1965. p 45.
Yoshizaki, J. Incinerator For The Waste Tires. Japanese Patent S40 50-
25275, August 22, 1975.
Young, J. Reclaim Process. RAPRA Information Report Number 5879,
September 1969.
Zeplichal, F. Pyrolysis of Old Tires: A Contribution To The Problem Of
Disposing of Scrap. Rev. G. Caout. Plast., Volume 50, Number 3, March
1973, pp 163-165.
71
-------
Zeplichal, Franz. Utilization of Waste Tire - A Contribution To The Problem
of Waste Utilization. Plaste Kautsch, Volume 22, Number 11, November
1975. pp 873-877.
Zorowski, C. F., and E. A. Saibel. Development of Mathematical Models to
Describe the Wear Process in Viscoelastic Materials. School of
Engineering, University of North Carolina, Raleigh, North Carolina
27600.
tut-
72
-------
APPENDIX A
BENEFITS AND COSTS: SYMBOLIC DEFINITIONS
The scope of the factors which we investigated was identified in Table I.
The benefits and costs which were determined to exist from among these factors
are symbolically modeled in this section.
PRODUCT VALUE AND DECREASED HASTE BENhFITS (Bn- B61)
The product value and decreased wastes benefits are the sum, for each
alternative, of the values determined by (l) the product value models, and
(2) the decreased waste model which are discussed in separate sections below.
Product Value Benefits (PVj)
The symbolic definitions used in calculating product value benefits are
displayed in Table A-l. Product values were defined to include:
-Sales prices for shredded rubber, usable land,
energy, and materials including carbon, oil,
and steel
-Incremental sales revenues or losses as compared
to new 40000 mile tires with which retreads and
100,000 mile tires compete
-Salvage values for tire carcasses processed by
Cryogenics, after retreaded or 100,000 mile
service life is completed
-Interest on funds gained or lost in the tradeoffs
suggested by the waste reduction alternatives
-Discounting
Decreased Waste Benefits (WAj)
Each worn tire processed by a recovery method eliminates, forever, the
administrative and processing costs that would have otherwise been necessary
should that tire have been disposed of by landfill.. The waste decreasing
methods avoid tire solid waste costs and, in addition, can eliminate them at
a later date through resource recovery. We measure only the portion of the
costs avoided here. The recovery methods avoid only processing and adminis-
trative costs while the waste decreasing methods eliminate a portion of all
of the tire solid waste handling costs. The models which we used to represent
are given in Table A-2:
73
-------
LIST A-l
DEFINITIONS TO ACCOMPANY TABLE A-l
C = cost per solid waste tire for processing by Cryogenics
DC = pounds of Carbon recoverable from one solid waste tire by Pyrolysis
DQ = barrels of oil recoverable from one solid waste tire by Pyrolysis
DS = tons of scrap steel obtainable from one solid waste tire by Pyrolysis
Hm = additional materials needed for a 100,000 mile tire; a decimal fraction
Id = interest and discount rate for business analysis
Na = number of solid waste tires needed to fill one acre of landfill to a
3?':"- depth of six feet; calculated at 1 cubic foot per tire
£?•
••«"./ P-, = price per acre for land reclaimed by landfill
O.
c|yp P = selling price per pound for recovered. Carbon
* * •'
•""•'' P0 = price per tire processed by Cryogenics and sold in bags as granules
Cii. 9
!«"•' PL. = selling price for a 100,000 mile tire
11:,: h
.,; PO = selling price per barrel for recovered oil
;**f-i; P = selling price for a retreaded steel belted radial tire
SL'iilh'
"""'•" PS = selling price per ton for scrap steel
Pt = price per ton for coal
P* = selling price for a new 40,000 mile steel belted radial tire
Rp = proportion of a worn tire that is rubber
Uc = BTU heat value per pound of coal
Ur = BTU heat value per pound of worn tire rubber
Wt = average weight of a worn tire
74
-------
TABLE A-l: PRODUCT VALUZS. SYMBOLIC DEFINITIONS
Road Repairs: Product Value Model 1
PV1 = pg - Cg + PSDS
= the net profit from Cryogenics, plus the
revenues from the steel recovered, per
solid waste tire
Landfill: Product Value Model 2
pa
Na 261360
= the sales price for reclaimed land in a landfill
six feet deep, per solid waste tire
Incineration/Energy: Product Value Model 3
PV3 = l r t p
2000 Uc
PV3 = the sales value of the BTU s of heat value produced by a
solid waste tire, valued at the price of coal
Pyrolysis: Product Value Model 4
P\I « = np + n p + n P
™4 Vc + UOKO + USKS
\/4 = the sales revenues from recovered carbon, oil, and steel respectively
Retreading: Product Value Models 5 & 5m
PV5 = !r_Lj!y 4 pg" cg +^s°s
P\/5 = the difference in revenues between a retreaded and its new tire
competitor, plus the salvage value of the worn tire carcass after
one retreading
PV5m = the term ".8P*" is removed front the model according to this
modified definition.
75
it
It
-------
Table A-l (continued)
PV6 =
100,000 Mile Tires: Product Value Models 6 & 6m
1 1 1
",10 4
(l+Id)
(1 <- HJ
- p*
1 +
,16
'***«'•
;pg-c,
Y*
2YC
(Hid)
Y*/2
Y*
16
(Hid) (HI)
20
o,,
the discounted sales revenues from two 100,000 mile tires, one sold
at present and the other at the end of year ten, plus the discounted
values of two 100,000 mile tire carcasses salvaged by Cryogenics,
minus the discounted values of the five current 40,000 mile tires
replaced by the two 100,000 mile tires, minus the discounted value of
five 40,000 mile worn carcasses processed by Cryogenics. This sum
is multiplied by a fraction representing the ratio of the planning
period of our study to the number of years included in the comparison
of 100,000 and 40,000 tires 120 years above) to convert it to a rate
per four years. Finally, the result of the calculations is multiplied
times a term which adds in the average interest on the funds gained
or lost by this tradeoff each four years.
PV6m is a modified definition of PVg in which includes only the 100,000
mile tire revenues per four years.
2V,
76
-------
TABLE A-2. 1WSTE DECREASING MODELS
WAi = CL + KLCL for i = 1,2,3, and 4
pc Y
WAi = < -p + Ca + Cb + Cu + Ch + Cc + CL + KLCL)(l- -!-
for i = 5,6
LIST A-2
DEFINITIONS TO ACCOMPANY TABLE A-2
Cg = cost of grading a worn tire casing for possible reuse
Cj., = batch collection costs per solid waste tire
C
-------
CONSUMER COSTS AVOIDED
62
The road repairs, retreading, and 100,000 nnle tire alternative accrue
benefits to consumers in terms of avoided costs: incineration, landfill, and
Pyrolysis do not exhibit these benefits.
Three symbolic definitions of road repairs costs avoided (by public road
repair agencies) benefits, each representing an alternative average frequency
of road repairs, are given in Table A-3. List A-3 provides definitions of
the symbols used in the Table.
TABLE A-3. CONSUMER COST AVOIDED MODELS
»*'!
Where:
'xb
= the road repair costs avoided per solid waste tire processed plus
the interest on the funds available by this avoidance; both are
measured over a four year time period
(for a three year repair interval)
Rr
•c
(l+Ig)3.33 (l+Ig)6.66
- (*c-CtraMl+Ig) -1 Rcd+Ig)6'66 -1 Rc(HIg)3-33 -1
~ y b
(1 + Ig)10 (1 + Ig)
Where: (for a five year repair interval)
R_c
cspml ( Rc " ctra ) + / ,
10
S.
ipml
( 1
.5
ia)10
I)10
I )5
xg '
In )10
78
-------
Table A-3 (continued)
where: (for a ten year repair interval)
Cspm2 = Rc " ctra
(Rc - Ctra) (1 H
Sipm2
( 1 + Ig )10
And: Nb = WpPGAbN
LIST A-3
DEFINITIONS TO ACCOMPANY TABLE A-3
AJJ = the area, in square yards, of a 3733 square yard Phoenix, Arizona,
city block of road
Csp = present value (S) of the road repairs avoided each ten years; the
subscripts, ml and m2, represent modified definitions 1 and 2
^tra = tire asphalt rubber road repair costs for one 3733 sq.yd. city block
G = the application rate, in gallons per souare yard, for asphalt rubber
Iq = interest and discounting rate for federal funds
N = the proportion of a solid waste tire that it takes to recover one
pound of tire rubber asphalt additive
Njj = the number of solid waste tire carcasses used in repairing one 3733
square yard city block
P = the weight, in pounds per gallon, of tire asphalt rubber
RC = the cost of conventional repairs to one city block of road
S.jp = present value ($) of the interest earnable on Csp; the subscripts, ml
and m2, represent modified definitions 1 and 2
Y* = years of service life of a 40,000 mile tire
Y6 = years of service life of a 100,000 mile tire
Wp = the proportion, by weight, of tire asphalt rubber which is worn
tire rubber
79
-------
The waste decreasing strategies, at our best estimates of production
costs and sales prices, exhibit substantial benefits to consumers in terms
of the cost per year of tire services provided. These consumer costs avoided
benefits were represented as the cost savings per four years achieved by
using retreaded or 100,000 mile tires in lieu of 40,000 mile tires. These
benefits are modelled in Table A-4.
TABLE A-4. CONSUMER COSTS AVOIDED BENEFITS MODELS
M*P,
552 = P*
'62
= P* -
(M5 -
M*Ph
LIST A'4
DEFINITIONS TO ACCOMPANY TABLE A-4
P^ = the average retail price of a 40,000 mile steel belted radial tire
P^ = the average retail orice of a 100,000 mile tire
P = the average retail price of a retreaded steel belted radial tire
I
\ = the average 1977 mileage of a new steel belted radial tire
Mg = the total mileage obtained by a retreaded steel belted radial tire;
this includes both original and retreaded mileage
^5 = the average mileage obtained by a 100,000 mile tire: 100,000 miles
CORPORATE PROFITS TAX TRANSFER BENEFITS (B31 - B36)
In the event that any of the alternatives studied earn profits, cor-
porate profits taxes would have to be paid. These taxes represent a cost
to the tire businessman, but a berefit to society. The tax funds may be
spent by governmental agencies for activities beneficial to society. Cor-
porate profits tax benefits models as represented in this study are given
in Table A-5.
80
-------
TABLE A-5. CORPORATE PROFITS TAX BENEFIT MODELS
Resource
resource / \
Recovery Bi3 = P.T = B^ - (C^ + Ci2 + C13) T i=l,...4
Retreading B53 = T (F5Pr - KrCt) - T (F* (.8P*) - EXL)
i
100,000 Mile B = T (F p _ £XAV) Y* i . f(F*p* - EXAV)
Tires Y
LIST A-5
DEFINITIONS TO ACCOMPANY TABLE A-5
Cj. = retreading production cost
EXAV = selling expenses for a 40,000 mile steel belted radial tire (average)
EXL = selling expenses for a 40,000 mile steel belted radial tire;
low estimate
F* = tire dealer's gross profit rate on the selling price for a 40,000
mile steel belted radial tire
Fr = tire dealer's gross profit rate for a 40,000 mile retreaded tire
FS = tire seller's gross profit rate on selling price for 100,000 mile tire
K = decimal fraction representing administrative and marketing costs
for a retreaded tire
P* = sales price for a 40,000 mile new tire
Pj = corporate profits for recovery alternative "i"
ph = sales price for a new 100,000 mile tire
Pr = sales price for a 40,000 mile retreaded tire
T = the corporate profits tax rate
Y* = service lifr of a 40,000 mile tire
Y,. = service life for a 100,000 mile tire
81
-------
PHYSICAL ENVIRONMENT/AESTHETICS BENEFITS (B14 - B64)
Resource recovery, recycling, and source reduction are concepts designed
to maintain quality of the physical environment. When a worn tire is litter-
ed, dumped, or improperly landfilled, it results in pollution and creates a
less desirable environment. Resource recovery, recycling, and source reduc-
tion avoid this land pollution. The dollar value of maintaining Quality of
the physical environment, avoiding land pollution, may be represented as being
equivalent to the costs which would be necessary to properly dispose of a
tire; environmental quality can be measured! We used landfill costs as a
surrogate for this purpose, (see Table A-6 and List A-6) The use of landfill
costs was a rather conservative choice, however, since the physical environ-
ment, a shredded tire landfill, will never be truly natural.
TABLE A-6. QUALITY OF THE PHYSICAL ENVIRONMENT MODELS
Where
c + CL + KLCL
equals the costs of storage, grading, batch collection, haul,
handling, chopping, landfill operating costs, and landfill
administrative costs
CS
.On-
Where E54 equals B]4 adjusted to be a rate per four years; this includes
both the original and retreaded life of the retreaded tire in YS
'64
B14
1 +
m'
(l+Ig)
10
2Y,
Where B,-4 equals the difference in tire solid wastes costs between five
conventional 40,000 mile tires and two 100,000 mile tires;
the difference is adjusted to be a rate per four years
82
-------
p
LIST A-6
DEFINITIONS TO ACCOMPANY TABLE A-6
Bj4 = the benefits to improved (maintained) quality of the physical
environment attributable to a solid waste tire recovery process;
specifically, the benefit in road repairs is used-this is
equivalent to the benefit in landfill, B24 , which could have been
used in the formula instead
Ca = the costs of grading a worn tire carcass for reuse
£5 = the batch collection costs per worn tire
Cc = the costs of chopping up (shredding) a solid waste tire
C^ = handling costs per solid waste tire
CL = the landfill operating costs per solid waste tire
Cr = the average monthly rental cost for a tire dealer
Cu = the haul costs per solid waste tire
Hm = a decimal fraction representing the additional materials needed for
a 100,000 mile tire
Ig = the discount/interest rate for governmental funds
KL = a low administrative and marketing cost factor decimal fraction
S = the average proportion of a tire dealer's space used tor storage of
worn tire casings
V = the average inventory of worn tire casings held by a tire dealer
Y* = the average years of service life of a 40,000 mile steel belted
radial tire
Yg = the total service life of a retreaded steel belted radial tire,
including both the original life and the retreaded life, in years
Y = the service life , in years, of a 100,000 mile tire
83
-------
It might be noted that retreading and 100,000 mile tires accrue these
benefits due to decreases in the solid waste generation rate; they may still
be recovered at a later date to provide a full set of environmental benefits
as do the recovery alternatives. Since our study was organized to compare
the alternatives as if they were mutually exclusive, we did not model this
effect.
CONSERVATION BENEFITS (B15 - B65)
All of the alternatives studied, except for landfill, conserve resources.
The road repairs with tire asphalt rubber alternative avoids the use of road
repair materials; this effect was measured as a product value earlier. Tire
asphalt rubber, in addition, may be compared to an alternative process which
is designed to accomplish the same end, avoiding road repairs. Heater Scar-
ification with Petroset is a viable alternative to tire asphalt rubber, (see
Appendix D) We determined the conservation benefit per tire for tire asphalt
rubber with respect to this process. This benefit (and other conservation
benefits discussed below) is modelled in Table A-7 below.
?''' TABLE A-7. CONSERVATION OF MATERIALS BENEFITS
f-f :
•. 1+,CT h£
84
-------
LIST A-7
DEFINITIONS TO ACCOMPANY TABLE A-7
Ce = the cost per square yard for road repairs using heater scaritication
with Petroset
Cf = the average cost of h inch of asphalt concrete (ACFC) finishing coat
in road repairs
Cs = the average cost of one inch of asphalt concrete in road repairs
Dc = the pounds of carbon obtainable from one solid waste tire using the
Tosco Pyrolysis (Destructive Distillation) process
DQ = the barrels of recovered oil obtainable from one solid waste tire
using the Tosco Pyrolysis (Destructive Distillation) process
DS = the tons of scrap steel obtainable from one solid waste tire using
the Tosco Pyrolysis (Destructive Distillation) process
H = the average production cost for a 100,000 mile steel belt radial tire
Ig = the discount/interest rate for governmental funds
Ns = the number of whole tires used in one square yard of tire asphalt rubber
road repairs
PC = the selling price per pound for recovered carbon
P0 = the selling price per barrel for recovered oil
PS = the selling price per ton for recovered steel
P-t = the price per ton of coal
R* = the average production cost for a 40,000 mile steel belted radial tire
P.p = the proportion of a worn tire which is rubber
Sm = the proportion of a tire manufacturer's average selling price per tire
allocable to materials costs
S0 = the proportion of a tire manufacturer's average selling price per tire
allocable to overhead
Uc = the heat value, in British Thermal Units (BTUJ, obtainable from a
pound of coal
Ur = the heat value, in British Thermal Units (BTU), obtainable from one
pound of solid waste tire rubber
N£ = the average weight, in pounds, of a solid waste tire
Y* = the years of service life of a 40,000 mile steel belted radial tire
Yg = the years of service life of a 100,000 mile steel belted radial tire
Y5 = the years of service life of a retreaded tire; including both the
original equipment life and the retreaded life
85
-------
or""
H* ]**''' J
Two alternatives, incineration with energy recovery and Pyrolysis, also
conserve resources. Each tire incinerated to produce energy avoids the need
for using a comparable amount of primary fuel. The formula for 835 of Table
A-7 represents the value of this fuel conserved per solid waste tire. The
formula for 645 represents the value of the carbon, oil, and steel conserved
by reusing carbon, oil, and steel from solid waste tires. The conservation
benefit of retreaded tires has been represented, in Table A-7, as the savings
in materials and associated overhead each four years. The conservation ben-
efit for 100,000 mile tires is slightly more complicated. We modelled this
benefit as the discounted difference, per four years, between the materials
used in five 40,000 mile steel belted radial tires and two 100,000 mile tires,
TIRE COLLECTION COSTS (Cn - Cei)
Solid waste tire collection costs were defined to include the six sep-
arate costs indicated in Table A-8.
TABLE A-8. INVENTORY, HANDLING, SHREDDING, AND TRANSPORTATION COSTS
crsp
Cil ' v
+ ca + cb <
h Cu + Ch + Cc
i = 1....4
p 1 -+P 4- r» 4- r 4-P -^P!
Lil ^ v La Lb ' Lu 4 uh Lc
v*
l'i]
i = 5,6
=<$'. LIST A-8
O-! DEFINITIONS TO ACCOMPANY TABLE A-8
IUU
Ca = the costs of grading a worn tire carcass for reuse
Cb = the costs of batch collection per worn tire
Cc = the costs of chopping up (shredding) a solid waste tire
C^ = handling costs per worn tire
Cr = the average monthly rental cost for a tire dealer
Cu = the haul costs per solid waste tire
Sp = the average proportion of a tire dealer's space used for storage of
worn tire casings
V = the average inventory of worn tire casings held by a tire dealer
Y* = the average number of years of service life of a 40,000 mile steel
belted radial tire
Yi = the average number of years of service life for retreaded or 100,000
mile tires; 1=5 for total retreaded & OE life, i=6 for 100,000 mi. tire
86
-------
Collection costs are represented as the sum of: (l) inventory holding
costs associated with storage space rental, (2) grading costs of inspection
and classification, (3) batch or micro-collection costs, (4) haul or
macro-collection costs, (5) handling costs for loading and unloading, and
(6) shredding or grinding costs. The solid waste decreasing alternatives,
retreading and 100,000 mile tires, have their costs decreased by the ratio,
Y*/Y.j, since these decrease the quantities of solid wastes requiring collec-
tion each year.
PROCESSING COSTS (C12 - C62)
The resource recovery processing costs for landfill, Pyrolysis, and
incineration were not symbolically modeled in this work, but rather were
input to our calculations as data. The processing cost for road repairs
was represented as the cost per solid waste tire for materials and for the
application of tire asphalt rubber.
TAI3LE A-9. RECOVERY, SOLID WASTE, AMD PRODUCTION PROCESSING COSTS.
'12
RrAb ctra
Nb = Nb
'52
C62=IH
i
•4
»«d)1U
-
R
1+1+1+1 + 1
(l+Id)MlHd)8 (Wd,12 (l+Id)16
] Y*(l
J
+Id)Y* Y*
2Y6 Y6
The processing cost for retreading represents the cost of retreading a
steel belted radial tire plus the cost of processing the tire solid wastes
per tire retreaded that still remain each year. The processing cost for
100,000 mile tires represents the difference (and interest on the difference)
in original equipment production costs between two 100,000 mile tires and five
40,000 mile tires. This difference has been discounted and adjusted to be a
rate per the lifetime of the tire which is used as the reference for our cost
and benefit measurements. The solid waste tire costs that remain each year
with this waste decreasing alternative are then added.
Definitions of the symbols utilized in Table A-9 are given in List A-9.
87
-------
LIST A-9
DEFINITIONS TO ACCOMPANY TABLE A-9
Ab = the area, in square yards, of a Phoenix Arizona city block: 560' X 60'
Ct = the cost of retreading a steel belted radial tire
Ctra = the costs of tire asphalt rubber repairs to a 560' X 60' city block
E = the costs of collection, handling, processin, and disposal tor a solid
waste tire
H = the average production cost for a 100, OOu mile steel belted radial tire
Id = the discount/interest rate used to represent privately invested capital
Nfc = the number of solid waste tires needed for tire asphalt rubber repairs
to a city block 560' X 60'
R = the average production cost for a 40,000 mile steel belted radial tire
Rr = the cost per square yard for materials and application of tire asphaly
rubber
Y* = the years of service life of a 40,000 mile steel belted radial tire
Y5 = the years of service life of a retreaded tire including tne original
equipment and retreaded lives
Yp = the years of service life of a 100,000 mile tire
'"f;-;;- ADMINISTRATION AND MARKETING COSTS (Ci3 - C63)
V"'
'•"•"• Administrative and marketing costs, listed in Table A-10, were estimated
t as a percent of the processing costs. Administrative and marketing costs for
-jjj^ 100,000 mile tires were negative; these were, in actuality, benefits in terms
^jT'" of decreased costs. 100,000 mile tires decrease production, administration,
jjjj and marketing throughput volume; fewer salesmen and administrators are needed
with this alternative.
TABLE A-10. ADMINISTRATION AND MARKETING COSTS MODELS
^i3 = ^i^!2 i = 1>•••»6
LIST A-10
DEFINITIONS TO ACCOMPANY TABLE A-10
the processing costs for recovery, recycling, and 100,000 mile tires
administrative and marketing costs expressed as a decimal fraction
88
-------
OPPORTUNITY COSTS: JOB GAINS AND LOSSES
This cost category was developed as a focus for discussion of the
emotion packed costs and benefits associated with job losses and shifts and
with the creation of new jobs. The production of 100,000 mile tires will,
over a period of time, decrease the number of jobs in the tire industry; in
the short run 100,000 mile tires increase employment. Retreaded tires can
be substitutes for new tires. Increased retreading creates new retreading
jobs, but decreases employment in the new tire production sector by a
commensurate amount. Resource recovery, on the other hand, creates jobs. If
the sole criterion for selection of a solid waste tire management strategy
were the affects on employment then retreading and resource recovery seem
to be especially attractive.
How can the value of a job be measured? If there is an appropriate way,
it would be as follows. The importance of jobs is to the people who would,
or do, hold the job. The measure of job value is the salary or wages paid
for that job. Consequently, job gain benefits might be measured as the value
of the increase in labor costs associated with an alternative. Job costs
might be measured as the value of the labor wages and salaries lost as a
result of implementation of one of the alternatives.
Symbolic models for job loss costs and job gains benefits (negative job
loss costs) are given in Table A-ll.
TABLE A-ll. JOB GAINS AMD LOSSES MODELS
Ci5 = "°LBii 1- = i
C55 = SL (.8R) - SrCt i = 5
C65 = ((SL + HL) H - 2.5
The job cost/benefit for retreading is modeled as tne difference between
the labor value for a cheap new tire, the cheap new tire being priced at
eighty percent of the cost of production of a new tire, and the labor value
for production of a retreaded tire.
The job cost/benefit for 100,000 mile tires is represented as the
difference between the labor value of one 100,000 mile tire and 2.5 steel
belted radial 40,000 mile tires; this difference has been adjusted to be a
rate per the lifetime of the reference tire.
89
-------
LIST A-ll
DEFINITIONS TO ACCOMPANY TABLE A-ll
t- labor
'*!-" ': '.'.
B,i = the value of the product(s) produced by recovery, recyclina by retread-
' ing, and 100,000 mile tires
Cj. = the cost of retreading a steel belted radial tire
H = the average production cost for a 100,000 mile tire
Hi = a decimal fraction representing the increased labor needed for a
100,000 mile tire
OL = the decimal fraction of resource recovery products value attributable
to labor
R = the average production cost for a 40,000 mile steel belted radial tire
SL = the proportion of a tire manufacturer's average selling price, per
tire, allocable to labor costs
S = the fraction of a retreaded tires production cost attributable to
90
-------
APPENDIX B
THE TIREC PROGRAM
Tirec I is a program developed in 1973 as part of the au-
thor's doctoral dissertation. Tirec I calculated the costs,
benefits, and values ofr eight tire resource recovery alterna-
tives; it conducted optimality and linear programming analyses
in addition.
Tirec I was modified for this research to represent improved
cost and benefit definitions and alternative optimality analyses.
The program, Tirec II, is documented only by comments, (1) in the
program itself, and (2) in this report. Tirec II allows for
eight alternatives and yet studies only six alternatives. The
alternatives studied are numbered differently in Tirec II than
they are in this report. The alternative numbers used may be
identified in Table B-l.
TABLE B-l. TIREC ALTERNATIVES IDENTIFICATION
Alternative
Alternative number
Tirec ITirec II
Incineration 1 1
Tire asphalt rubber 2 2
Roadbase aggregate 3 not used
Landfill 4 4
Destructive dist. 5 5
Retreading 6 6
38,000 mile tires 7 not used
100,000 mile tires 8 8
This Report
3
1
not studied
2
4
5
not used
6
The costs and benefits of the unused alternatives 3 and 7
of Tirec II were set equal to zero. No linear programming
analysis was carried out in the Tirec II analysis although the
storage spaces of Tirec I were left declared in the program in
order that the linear programming subroutine could be emplaced
as desired.
91
-------
The calculation of SBV^ values is not carried out automa-
tically by Tirec II; all other calculations are made by the
program.
Tirec II is a working program specifically designed for
tires research. It is not a general cost/benefit program.
Tirec II is not designed to be efficient in terms of computer
time used yet it requires only about six minutes total processing
time on a IBM 370-148 computer using the PL1 optimizing compiler.
The printing time (for about 100 pages) is additional.
at.....
U!
92
-------
OPTIMIZING COMPILES
SQLRCE LISTING
STMT
)/* TIRES B'EHmT/COST PROCESS INCTT1" OPTIMIZATION ftNAIYSrS"~PTTOGR4H *f
\ |TT?EC: PROCEDURE OPTIONS (MAIN);
2 |D:L C%NI FIXED BINARY;
I "
I
___ I
I
I
3 1 M="4;~N= 5; ' """ ~
5 I DISSERT: BEGIN;
6 IDCL (F,I,J,K,L,P,R,S,T,V) FIXED BINARY INIT (0)5
~7 IDCL D'FTXED DEC 19,275"
8 IDCL A(MH ,0: M + V) FIXED D2C (15,3); .
9 IDCL C(0:N+y) FIXED DEC (15,3) INITIAL (d+N+M) 0);
"10 IDCl^RATT^TTHFTArTIXED DEC ( I5,'3)~ IMTI AL (0) '5
11 IDCL Bd) FIXEC BINARY;
12 IDCL BENEFITS (8,5) FIXEC DEC (15,3);
13" |DCL~rOSTS(8,9T FIXED DzC ( 15, 31T
14 IDCL AV_D£AL5ftS_MnNTHLY_RENTAL FIXED DEC (10,2)5
15 IDCL GRADING COSTS FIXED CEC (10,2»;
~16"~ IDCC~BATCH_COL"LFC7T'ON_COSTS FIXED DEC~UO,21 ;
17 IDCL WORN_TIRE_STORiGE_PROPCRTION FIXED DEC (10,2)5
18 IDCL (HAUL.COSTS,HANDLING_COSTS) FIXED DEC (10,2);
"19"~"|DCl~TG3!NJDTNG_CaSTS,CHOPPING_COSTS) FIXED DEC 110,21'*"
20 IDCL WASTt_P°OPORTICN(N) FIXED DcC (10,21;
21 IDCL TIRE_YEARS_LIFE(N) FIXED DEC (10,2);
"22~"1DCU~MILEtGSlUSr_DER_YEAR FIXED DEC (10,21;
23 IDCL TOTAL MIL EAr,E_PER_^ IP E( N ) FIXED DEC (10,2>;
24 IOCL BELT-D_eiAS_PPCD_COST FIXED DEC (10,2);
25'" IDCL CQSriTNCHX FIXE5 DEC (10,2); ' "'
26 IOCL DISCOUNT_RATE FIXED DEC (10,2);
27 IOCL ON?_HUNC_VI_TIRc_PROD_CCST FIXED DEC (10,2);
~28~~TDCU~MATERr4i;Sl'PP.OPORTION FTXED"DEC" (T0,2) ;
29 IDCL ADMIN MKTG_COST_FACTOR_LOW FIXED DEC uo,2);
30 IDCL AOMU'_MKTG_COST_FACTOR HIGH FIXED DEC (10,2);
31 " IDCL'"AO*IN_MKTG_CaST_FACTOR_PETREADS FIXED DEC (10,2);
32 IOCL #0"IK MKT_Cnsr_'=ACTCR_lOOOOO_MI FIXED OEC (10,21;
33 IDCL TIRt_v.lL = AGE_PRICE 60U IVALCNT( fJ I FIXED DEC JIO,2>!
"34—nCL~AV-3F/OOOI^lLE^TTP.E_PRICE"FIXcD DEC" (10,'2);
35 IDCL AV_IOOOOO MILE TIRE.PRICE FIXED DEC (io,2>;
36 IDCL INTERNAL COS'SINI FIXED DEC (10,2);
37 1DCL'COAL1PRICE_P'F-1TON FIXED DEC (10,2);
38 IOCL POUNDS PHP_wASTS_TIRE FIXED DEC (10,2»;
39 IDCL LAND_PRICE_P£P._AC*E FIXED (10,2);
"40—IDCC~DESTT?ucrrvEiDrsT PRPOUCTS_PRICE FIXED DECTiOTrrr
93
-------
OPTIMIZING COMPILER
STMT
OU
"41 IDCL INfEF~NAL_VALUE(.N) FIXED OtC" ( 10, 2 ) ;'"
42 IDCL AV_RErRSAC_Tie£_P=UCE FIX:D (10,2);
43 IDCL T1R5_CARCASS_VALUE_PROPORTIQN FIXED DEC 110,2);
44 —|DCL"50CrAL_VALUES(!J) FIXE3 "DeC~"( 1DV2) ;
45 IDCL VAL_LIMIT<*1 FIXED DEC (10,2);
46 IDCL HOLD FIXED 3:C (15,3);
"47 ~TOCL"-Ou£NT' FIxIO Q'C (15,3); "" "~~
48
49_
51
52
'53 '
55
"56"
57
58
59
60
61
62
63
64
65
66
67
'68
69
70
71
72
73
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
IDCL
IDCL
|DCL"
IDCL
IOCL
~|DCr
IDCL
IDCL
WASTF_DFCReaS;_PT_PER_YEAR(NI FIXED D6C (10,2);
ENVR_OUALITY_COSTS FIXED DEC (10,2);
CO"P_PRCP1T1TAX_RATE FIXED DEC (15,31 INIT (OIT
TAXHOLO FIXED PEC (15,2);
FIG FIXED DEC (10,21;
~CHir-F IXECT" DcC'l 10,2 1 ; ----------- ~
RADIAL_38S_PROO_COST FIXED DEC (10,2);
S€T(N( FIXED DEC (10,21;
IDCL HEADING CHAR uoo) INITIAL ('BEST VALUE coeFFiciENT ESTIMATES*!;
t>A"4M_CHAp (ioo) VARYING; __ _
"PARA'^VAT"FTX5D DEC '
-------
OPTIMIZING COMPILER
STMf "
90 TOOL GA FIXED C?C~~(TO , 2 »
91 lOCL AB FIXED C?C (10,2)
92 IOCL NT PIX: O DSC (10,2)
94 IOCL CSP FIXrO D£C (10,2
95 IDCL RC FIXED CEC (10,21
96 rDCL~CTfnrrrXTD- CEC"'(10,
97 IDCL N6 FIXED CEC <10,2)
98 IDCL CE FIX5D Dt-C (10,21
99 1 DCL~'CS~F1X'ED~C;C-T10,2T
100 IDCL CF FIXED DEC (10,2)
101 IDCL NS FIXEO DEC 110,2)
r
103
104
105
106
107
'108
109
110
111
112
1 13
IDCL CRYOG6NICS_COST FIX D DEC (6,2);
l!XL PP.C FIXED CEC (6,2) _ ^^^
1 DC L~TT"F I Xh D CEC ~T6~,"2r;
IDCL RAMFLEX_PRICE F I XtO DEC (10,2);
:D:L PC-CPROC FIXEC SINAPY;
-TDCL~aV-BELTET_TTtS_TTRFIPRTCE FIXED-DEC"? 10.-21;" ----
IDCL RET_0°P COST TO .MANUFACTURERS FIXED DEC (10,2);
IOCL AOMIN.MKTG COST_FACTOR_38000_MI FIXED DcC (10,2);
"IDCL" PL~*NT_:SIZE_TPD FIXED DEC (10,2)'; --------- ----------
IDCL CAPITAL_PTPC_CONVERSION_COSTS FIXED DEC (10,2);
| DCL J IT 1 S V ( N I F I X6D DEC £1^5 ,3)J __________ __
I
I/* PASIC ANALYSIS USING BEST DATA ESTIMATES */
T
I
|L=1
IPUT EOITC6EST DATA ESTI MATES ' ) ( PAGEtSKIPC 5), A );
(PUT eDIT(»CATA')(SKIP(3»,A);
115
116
117
us IHEADING = '°.ASIC ANALYSIS'
H9 ICALL VALUES;
ANALYSES */
•TF VAklL1US'PT3CODNT'RATES~*T '
WOP.M1) = DISCOUNT_RATE;
120
121
122
123 IHEADING = «oiscojt4T/iNTEResT RATE EFFECTS ANALYSIS*;
124 |PAFAM = 'DISCOUNT RAT£«;
rT -.13-"BY -.DZ;
95
-------
OPTIMIZING COMPILER
STMT
"126" I" ni'SC'CUNOATH = C;
127 I PARAMV4L = DISCCUNT_RATE;
128 I ID = DISCnUNT_R4TS_f .12;
129 I CALr~VATUES; """ ~
130 I END;
131 101SCOUNT_RAT= = HQPMll;
"1/2~TID = WCRK72J';
I
I
1
I/* ANALYSIS OF VARIOUS PRICES FOR 100000 MILE TIRES */
133 |L= 3;
, .., 135 [ HEADING^ ANALYSIS OF VARIOUS PRICES FOR 100000 MILE TIRES';
'*'"„, 136 _ I °ARAM= •AV_100000_MILE_TIRE_PRICE ' ;'
|f;':» 137 ""JDO~0"="T50Vl?5ni5,110f 105 f88V37.02";"
..•^' 138 I AV_100000_"ILE_TIRE_PRICE = 0;
!'".;!•>.• 139 _| f>ARAMVAL = AV_J.O^pOa_MILE_TJRb_PRICE ;_
.tii 140" ! "CALL'VA'LUSS; " ' " " " "
'fa""^ 141 |END;
I,,!';;- 142 I ftV_100000_MILE_TIRE_PPl C£ = KORKt I >;
x- !
,«,-•> |/* •ANALYriS~OF"100000 'MRE" TIKE PkODUCTICN COSTS +7
IL - 5;
= ONc_HUND_MI_TIRE_PROD_COST;
_
| 145 "I HriOING~="~1ANfiLYSI$"DF~lCOOOO"MILE' TIRE" PRODUCT ION"COSTS«1
„ 146 |P4?AM = • Cr.e_HUND_MI_TI RE_P«CD_CCST' ;
:$!„ 147 103 D = I0,_20j _
•j. 148 I" OMHlHU^D"MI_"tI RE_P'R3C_COST "= OKElHUND_MI_TI R ElPROD_CO"S"T"+ D;
" 149 I PftRAMVAL = CNE_HUND_MI_TIRE_PROD_COST;
150 I CtLL VALUSSJ
151
152 IONF HUND MI_TIRE_"ROD_COST = WORK ( 1 ) ;
I
I
l/» DEFi.Ninn-g OF 100000 HILE TIPE PRODUCT VALUE BENEFITS SIMILAR TO
...... |RcTREADiNGS"DfcF INITION OF TOTAL ' PROOUCT VALUEi NOT INCREMENTAL"*/ .......
153 IL = 6;
154 |HEADIMG_= ' ALT? S_NAJI VE PENEF ITS< 8 , 1 ) DEFINITION'; _
155 ICALL" VALUE'S"; ..... "" ..... " ..... ........ "" ............... " .....
I
I
" """ I " "" '" ~ " "" "~ ...... "" ' ...... "" ..... """" ........ .....
I/* INVESTIGATION OF VARIOUS ROAD REPAIR FREQUENCIES */
156 IL « 7;
157 "IHFAO'ING ="»"FI V£ "Y EAR" INTERVAL "8E TWEEN CONV. ROAD REPA IRS' ;
r
96
-------
OPTIMIZING COMPILER
158 [CALL VATUSS"; ' "" """ " -- —- -- I
159 |L = 8; |
160 IHEADING = «TEN YEAR INTERVAL BETWEEN CCNV. ROAD REPAIRS*; I
"lfcr~ICALL~VATOSr; " ~ T
I
I
I/* ANAL/SIS OF ALTERNATIVE COSTS FOR ROAO REPAIRS */
162 |L = 3;
~"163~~TWCKKI1) .= RC;
164 |HEADING = 'ANALYSIS OF ALTERNATIVES FOR CONV. ROAD REPAIR COSTS';
165 (PAR AM = «RC»;
166 1DO D'v-800076~366T
167 | RC = D;
168 I PARAMVAL = RC;
"169r~CftLT V4LU5S;
170 IcND;
171 IRC •= WORK(l);
I
I
I I* ANALYSIS OF VARIOUS RETREADED TIRE PRICES */
172 {L~ = "91 ~
173 |WOPK(i)=AV_tlETREAO_TIRE_PRICfc;
174 IHEOING = "ANALYSIS OF RFTRSAD'ED TIRE PRICES';
~175""|PARAM = '^gTRFAD TIRF'PRICE'"; ' ~
176 |DO D = 27,37,47,57;
177 | AV RETRFiO_TI«?E PRICE = D;
"178 T'PAPAMVAL" =""AV;RFTREAD_TIRE_PRICE ;
179 | CALL VALUES;
180 jcNDj
18 I—I AV R'ETRF;A-rrTITElTJRrCE~=' WORKTTT;
I
I
i ~ ~ r"
I/* ANALYSIS OF FHUR INDEPENDENT DATA CHANGES */
182 |L - 3;
'183fWCRKTTT = "C;T
184 |WO?K(2) = LAND_PRICE_PER_ACRE;
185 |WORK(3) = CCAL_PRICE_PfcR_TON;
'186 IWHRKI 4)'~=' BELT;D_PI A^_P^OD_CO?T; "
187 I HEADING = 'FOUR T^drPENDENT DATA CHANGES';
188 IPARAP = 'pRicf.OF P.ecrvEREO CARBON*;
"189 PT = .01;
190
191
1S2'"T CnAL_PRICH_?FR_TON"= 25;'
193
154
LAND_PRI CE_DeR_-ACPE * 1COO;
BSLTEO_SIAS_PK-CD_COST = 18;
PAPAMVAL = PC;
CALL VALUES;
TS^—PC'W'JKMI 1}
97
-------
OPTIMIZING COMPILER
STMT
196
157
198
TLAMO_P(MCE_P=R_4CRE = WCRM2);
ICOAL PR ICS_PSR_TON = WORK(31;
I5ELTED_3I»S_OROD_CCST = WORM4);
I
199
200
202
203
"204
205
206
I/* ANALYSTS OF VAnOTS~~SERV7CrTTWS""FOTT"TIRES"*7
|L=6;
|WORK(1)_= nTAL_MILEAGE_PER_TIRE(8) ;
IwOffkf 21 ^~~AVrrOOOOO_m E_TIRE_PR"ICE;
|WORK<3»=TOTAL_«ILEAGt_PER_TIREC6> ;
IHEAOING = 'ANALYSIS OF VARIOUS SERVICE LIVES FOR TIRES';
•IPAQ"A"M v « DESIGN" SERVICE LIFE';
IDO P * 500CCt75000,125000t!50000f200000;
|TOTAL_MIL;AOF_PER_TIRc(8) = D:
"AV~3"!TO"OCC^imTIR"ELPini:S~*"Tr7"TDTACIMrLEAG
"•'I
sir f
2C8
'209~
210
211
'212
213
214
215
"216"
217
218
"219
220
221
222
223
224
225
226
227"
228
229
230"
__
I TOTAL.MR EAGE P£R_TIRC(6) =.25>D;
TPA R A^V A'r"^~T3TA!^M Il'EAGE_PER_T '
ICiLl VALUES;
IR'FOr '= HD(i'KVlT
I mtL.MILEACE.PEPjriREt 6)=WORK(3) ;
|AV_100000_MIL£_TI R.£_PRI CE=WORK( 2);
I/* ANALYSIS OF THE COST OF APPLICATION OF ASPHALT RUBBER
I WORM 1) = "SIC;
"1 HEADING = •tNALY'S'IS" OF" RRC"«T
IPARAM = «RQAD REPAIR COST*;
100 D = .50,.75,l,00,l-5C,2.00t2.32;
RRC '="[<";
PARAMVAL = RRC;
CALL VALUES;
"EN D";
RRC = WORM n;
/* ANALYSIS OF VARIOUS REFERENCE TIRE PRICES */
WOPKt rr=AV_-38000rMlLc_T IRE_PR ICE;
|WO»K(2)=TOTAL MILEAGE.PER tlRtl7);
|TOTAL_«ILEA3S »S»._T1R E( 7 j =36000";
""" MILEAGE-36000';" "
DECREASE ' M
-------
OPTIMIZING COMPILER
STKT
"231 r'A
232 ICALL VALUES;
233 I END;
234-"TAV_38ffOO'_mF_TIRE_PRICE=65.50;'-
235 ITOTAL_MK=AGE PER.TI^FJTI=40000;
I
__ _ __
235 IVAVDES: PROCEDURE";
I/* A PROCEDURE WHICH COLLATES, CALCULATES! AND INTEGRATES MINE
I CATEGORIES OF COSTS AND FIVE CATEGORIES OF BENEFITS IN CONVENTIONAL
--- 7" ..... "A NO" SCC 111" COST' BENEFIT ANALYSES FOP. WORN PASSENGER' C4R TIRE" .....
i MANAGEMENT,, THIS PROCEDUREt STATEMENTS 205 TO 380, PROCESSESES ALL
I QF THE CALCULATIONS DOCUMENTED IN THE DISSERTATION. */
I
I/* INITIALIZATIONS *•/
237 (DO J=l TO 5;
238 | 3ENPFITS(*tJI=0;
' 23 «J — FEND! - :
240 100 I * 1 TO N;
I DO J
242
1 TO 5,7 TO 9;
T5U,J» s OT~
243 I fcND;
244 | FQkM: END;
"245 - rT&XHDrD=ai /* T FnS~TS~TO~SVDTD~^IUMERTC'Ar~ERRORS~TN~CTgr91 LAIbK
246 ICOSTS(7,6I,COSTS(8,6»=0;
247 |COSTS«2t6) , COSTS! 6,6 ), COSTS (8 ,6»-0 ;
I
I
CHAR. */
248 100 I = 1 TO N;
249 "1 TTRFIYrARSItIF:?rn=TOTAt_MILEAGE_PER_TIRE(I)/MILEAGE_USEjPER_YHART-
250 IENO;
251 IDO 1= 1 TO' N;
252 - fWirTTZP
253
254
255" IDO
256 I WASTE DECREASE PT_P.ER_YEA^( I 1 = 1 - WASTE_PROPORT ION( I):
257 I END; _ _ __
99
-------
OPTIMIZING COMPILE*
STMT
~2'60 TEND";
I/* CALCULATION CF PRICES FOR RETREADSi NEW tONVENTION AL , & 100000 MILE
(TIKES. 100000 MILE TIPc CALCULATION INCLUDES DISCOUNTING. R=TREAO PRIC:
ISHnUUTOTSCCUVrTnCTBUT DOESNT"*/ --------------------- --------------------------- ' "
I
I __
I DO" 1=1 TO N; ' ' " ""• "
lTnE_"MLEAGS_PRlCE_EOUlVALSNT=tTIRE_YEARS_LIFE(I) )*( AV_38000_"ULE_TIRE_
CE/TIR£_Y6ARS_LIFE(1 ) ) ;
r
|WQRK<7)=1 + 1/IHOISCOUNT_RAT£)**4 *!/( 1+0 ISCOUNT_RATE1 *«8
I l/tl+DISCOUNT RATEI**12 *!/ { 1+01 SCOUNT_R AT E>** 16;
rwoexr9'j'^"~r>~iyrr*TD)**4"+' T/n+io)**e * i/(i+iDi**i2~ ~
263 |WORK(8I = AV 33000_MILE_T IRE_PRICE * WORM9);
(TIF.E_HlLEAG£_PPICg_5QUIVAL6NT(8) = WORK(8»/(l * l/( 1 + IO)**T IRE_YEARS_L
' "" .....
I/* CALCULATION OF TIRt PRODUCTION COSTS */
2t5 |RACIAL_38S_PPCO_COST =( BSLTED^BI AS_PROD_COST * ( 1*-COST_INDEX
I si * . m ;
266""|HM'=" lCT*on~+"TO'3-DD)' *~(CW*DS *DH*0'I )';
I/* HM IS ADDITIONAL MAT5RIAL NEEDED FOR A 100000 MILE TIRE */
267 llp L -.= 5 THEN
,, MATERIALS ORQPORTICN * HM + SL * HL + so * HO);
<*'». I
I/* PRINT INTERMEDIATE CALCULATION RESULTS */
i __
266 IDT;
269 _ lPUTjE_DIT_(SKIP,X(15»,A,A,F(15,3)>; _
272 ~lDO 'T"^"l TON; ™ ....... ~'
273 IPUT EDIT! 'TVLC.It ' ) =' t TIRE_YEARS_L IFEI I) ) ( SKIP« II , A,F ( 1 1 , A, F< 6,2>) ;
'275 lOD"! = I TO N; ' '•'". 1
276 |PUT £DIT<»WASTR "PROPORTION (Sit1) -• i WASTE_PROPORTI3N( I) ) ( SK IP( 1), A,
I Fill ,A,F(6,2)I ;
'277 ' I'tN'O; ' ~
278 Inn i = i TO N;
279 | PUT F.DIT('WASTE DE.CPSASE PER TIR'E PER VEAR < S 11'_)" S WASTE_OECR EASE.P I
}(SKlP'VAiFIl),A.,F{6,2)); " ' " I
T
100
-------
OPTIMIZING COMPILER
S T MT
28d TEND; "" " " " " '
281 IDO I = 1 TO N;
282 I PUT EOITCTMPE1 ',!,«) =«,TIRE MILEAGE_PRICE_EQUI VALENT( 11)
I" ~TSKlPm,A,F(l),A,F<6,2n; ~
283 ICND;
28* IPUT EOIT('RADIAL_38S_PRCO_CQST= ',RADIAL_38S PRCD_COSTI(SKIP,A,F(5,2) »;
"285 ("PUT EDTTPYOCrMTLTTIRE PRODUCTION COST=«,ONE_HUND MI TIRE PROD COST)
I (SKIP(1),A,F(6,2));
286 IPUT EDITJ 'AV_IOOGOO_MILE_TIRE PRICE = ',AV_100000 MILS_TIRE_PRIC6)
I rsxrp-,-zr;FT6-,2TJ;
287 IPUT EOITCHM = • , HK M SKI P (1), At F (6 ,2 I I ;
288 IEND;
I
I
I/* TIRES COST/BENEFIT CALCULATIONS */
I
I
289 ICONTIN:
i
I
I
77"*~~CTLtULATIOl
ICOSTS(*tlt = ,01
290 ICOSTS(6»1» = l;
292 I IF (I = 4 t L = 21 THEN GC TO CONTI;
293 I COSTSn,2)=(AV_DEALERS_MONTHLY_RENTAL*WORN_TIRE_STORAGE_PROPOftTION> /
I COSTS(I,3l=G«ACING_COSTS*BATCH_COLLECTICNj:OSTS;
295 I CCSTS(I,A)=I-AUL_COSTS*HANDLING_COSTS;
"296—I—rOSTS"nT5)^i:HCPPTNG_C OST S;
297 ICONTI: END;
2S8_I
299 I DO 1= 1 TCTT;
300 I COSTS(6tI)=WASTF_P^OPCRTION(6)* COSTS(6«I);
301 I COSTS 17,1 l = k«ASTE_PRC'ORTION(7l*_COSTS{7tI »;
303 I END;
I ___ _ __
I/* PROCESSING AND HASTE HANDLING COST CALCULATIONS */
I .
'304IENVK_UUALIIY_t
3C5 IPUT EDITt 'ENVIRCNMENTAL .QUALITY COSTS'= •tENVR_OUALITY_COSTS»(SKIP111,A
I
I
3TJ6 INB - i w * PC. * GA * IB"* NT;
101
-------
OPTIMIZING COMPILER
STMT
" 307" "|CHYOREKTICS'_CO'ST = "CY * FOUNDS_PER_WASTE_T IRE; " "~~ ........
308 )ROAO_REPAI. _COST = RRC * AB / NB;
309 ICOSTSJ2.6) = PCAD PEP«R_COST;
" 3lO~~"fPUT"EDTrT'CRyC'GFNICS COST =" VCRYOGENICS_C05T)C SKIPC1 ) , A",F C672)T:'~ .......
3ii IPJT EDITC« SOAC_REPAIR COST = • ,RCAD_REPAIR_COSTI = ONE_HUN D_H I_T IRE_PROD COST * TI R6_YEARS_LI FEUl/T IRE_YEARS_
1UFE<8); ..... ..... "" ..... ......
Jt" 315 I ELSE
•^'!' 1C3STS(8,6)= COME HUND "I TI RE_PROO_COST * ( 1*1/ (1 +10) **10) -
«'.;;''• -..._. I (f^DiAt^ss-^pKODj^n-ST >~{ IV 17 (1 + ID ) **4~+ l/l 1* ID >**8 + 1/C r+rDl**12~ '
*'••-••• i + l/Cl*IOI**t6JJI* (TIRE_YEASS_LIFE( 1»/(2*TI RE_YEARS_L I FE< 8) ) I
V;.,: I _ *(l+ID»**TIRE_YEARS_LIFEtl);
;%, "316" TCOSTS'ffi, 61= COST5T8T6r~*~HA'ST£'_-pROPCRTION(8>* (COSTS C4',6l*COSTS'{V,T)Tr""
-i !
•(7*"C"STCUUAT15NS""OP~ADVI'N"AKD MARKETIN'5 ^ "COST "AFFECTS"*/
TV !
,.., 317 I DO I»l TO 4;
™'.t 218 I C'CSTS(I,?r=i"CMrN_MKTGICOST_FACTCRlLOW "*" COSTSCI , 6) ;
J£,-> 319 ISND;
,. 320 |COSTSC5,7I=ADMIN_MKTG_CCST FACTOR.HIGH * COSTSt5,6»S
• 321 " ICDSTS(6, 7)=ADMrN_*KTG_COST_FACTOR .RETREADS * COSTSC6.6) ;
*«•*' 322 IIF CnSTS(6,6> <0 THEN CCSTS(6,7» = 0;
T*'" 323 _ ICDSTSt 8,7)^ApHIN_^KT_CDST_FACTOR 100000_MI *COSTSCB,6); _
*-' 324" (IF COSTSf8",6l<6 I L=6 THEN""COSTS(B,7) = COSTS< 8, 7 ) *<-! ) ', " '
&J !
r ~
I/* CALCULATIONS QF PRODUCT VALUES BENEFITS */
I
325 " rBEN'EFlTSTl ,lT~STCrAH>RI'C'E"JPg"RlTON" *"UW"* POU'NOS.PeRjwA'STEITTR't'"*" RB)/
I (2000 « UL» ;
326 lBENEFITS<2tl)=RAMFLEX PRICE + PA * OX - CRYOGENIC S_ COST ;
327 |B;NEFITS(3,1I =0": " .......... ........ ~" ' ..........
328 |6ENEFITS(4,1 I = (LANO PRICE PER_ACRE I/ (6*435601 ;
329 _!RSTREAr: _ _
iBEKEFlTSTsTil = I5"C~*~PC" *'~C'C '*~'PO~*"Ox" * 'PA";
330 HP L = 6 THEN
lBeNCFITS(6,ll=4V_Re"P?AC_TIRF PRICE ; _
331 IELSE "" " ..... "~ "" ........ ..... ........
lBhNFFITS(6, 1) = av_R?TREAD_TIRE_PRIC= - .8 * AV 38000 MILE TIRE_PRICE +
|EfNEFITS(2,l)/(H-ID)**TIRE_YEARS LIFEll)- BENEF I TS( 2i 1) ;
332 ~~" .......... " " ..... '"" ...... ..... "~ ' " .......
102
-------
OPT1MI ZING COMP ILER
STMt
333 ~]TF""L = 6"TKN ' ' "" I
|BENEPITS{6,1>= #V_100000 f I LE_Tt RE.PRICE* (1* I/ ( 1+ ID) **T IRE YEARS LIFE(8|
I)»"TIRE_YEARS_lIFiO^K(9) - BENEFITS ( 2,II* {WO<5K (9 l-l)) * TIPE_YEARS_LIFE(1»/I
I«2*TI<3F_YrARS_LIF?<8) )
I* (1 + (l/(TIRc_YCARS_LIFE(l)/2)»{l + IO)**TIRS_YEARS_LIFE( 11-1 ») ;
•3-35—VPUT~E(JTT{ 'BENEFIT S< 6V1)-'= •, BtNFiF ITS (6, 1» ) ( SKIP( 1), A,F IdrZlT;
336 (PUT EDIT( •3ENEFIT5(8,1I = •.BENEFITS(8, 1)) (SK IP(I) ,A ,F(6,2));
I
_ I /* ADDITION OF DECREASED HASTES BENEFITS TQ PRODUCT VALUE BENEFITS */
T .....
237 100 I = 1 TO 5;
338 I BENEFITSUil) = BEN5F I TS( I , I » *COSTS(«,6I +COSTS(^,7);
340 I DO 1 = 6 TO 8 :
341 I RSNEFITSt 1,1) = BcNEFITSCIf 1) + HAST E_DECREASE_PT_PE R_YE AR (I ) *
~
342
I
I
/» CALCULATIONS OF EMPLCYMENT EFFECTS */
343 IDO I = 1 TO 5;
344 I CQSTS
-------
OPTIMIZING
STMT
>•:
06
-s
uJ
354 I ELSE'COSISU ,9»=0;
355 IEND;
356 IDC I = 1 TO 5;
357 'T" B^mr$-(I73~r~=~C~OSTS(i;/TIR E_YEARS_L IFE I 8 » - (PRDFIT_PA
|T9( 7r~«~AVr33"0'0'0^^rLr_TIR'E_PR ICt"- EXAV) ) ;' '
362 I END;
3t3 I ELSE
100; ~ "" "
364 |BENEFITS(6i3)=CORP_PROFIT_TAXlRATE * (PROFIT_RATE(7I * AV_RETȣAD_TIRE_
IPRICF - ACMIN "KTG C3ST_FACTOR_RETREAOS * RET_PROC_COST);
365 |9EK'EFITS(8,3J=CORD_'=>ROFIT_TAX_RATe * ( PROFI T_RATE ( 8) *" AV1"1000001MTLE_T
|IR?_ORICe - EXAVI *lTl°c_Y£ARS_LIFE(1)/TIRE_YEARS_LIFE<8)
366 lENo" _ _ _
367 '|DOT'= 6 TO 8";"" " """ " " " ""
368 IIF 3ENEFITSU,31 > 0 THEN COSTS(I,9) = BENEFITSC1.3 I;
369 I5LSE CCSTSU r?) = 0;
'370 "
371
372
373
374"
375
276
377
378
279
/* CALCULATION' OF VALUE FRCM THE VIEWPOINT" OF THE T-I*E INDUSTRY"*/
DO 1= 1 TO 8;
i NTER'NiTTos: f rrr=cos"rs"( i"n r+co'STs < r, 2 J+COSTS « r,3 j+"co'STsnv'4» +COSTS< i , 5
l*COSTS(Tt6l*COSTS(Ii7l +COSTSU,9t;
SNO; __ ______ _______
00 "1=1 TO" 8;
INTEPNAL_vaLU£( I) = BEMEF ITS ( I , I ) - I NTERNAL.COSTS ( I » ;
ENO; ' ' '
IMTF'RNALTvflll'Ufr2T'=INTrRNAL_VA'LUE<2r"+ ROAD.ft EP AlR_COST *' Tl 4 ACMIN_MKT
INTERNAL ViLuC(7t=0;
104
-------
OPTIMIZING COMPILE*
S T M T
T/*" CALtULiflON "CF'TIRE RUBBER ASPHALT COST? AVOIDED AND INTEREST"
I9ENEFITS */
I ____
T " " ' '" "" "" ........ " .......... "
I/* NB WAS CALCULATED ABOVE AT ABOUT STATEMENT 278 */
380 IIP 1=7 THEN
381 ISIP =( (RC-CTRA)«U H-DISCOUNT_PATC I **10-1 1 I /(H-DI SCOUMT_RATE l**10
I (3O( ( 1+C ISCQUNT_RATE)**5-n )/( H-DISCOUNT_R ATE » **10;
"382' 1CSP="~TRX-CTRAT + RC/CH-DISCOUNT_RATE)**5; --------
383 IENO;
384 UP L_^_8 T_HEN
100:" " -....•— ........ - ..... . . ... ..........
335 ISIP=( (RC-CT*A)*« 1 +D ISCCUNT_RATE)**10- 1) )/ ( 1+DISC DJNT.RATE > **10 ;
386 |CSP = (RC-CT«A) ;
387
288 I£LSE DO;
389 |S1P=< (RC-CTRA )*( (1+CISCOUNT RATE) ** 10- 1) )/ ( l+DI SCOUNT RATEI**10 +
1 [RCnTItT'TTCTCT;T_PA-r?)**6r66-l) I7( 1+DI SCOUNT_RATE»**10' *~(RC*TTr* -----
I DISCOUNT. RAT= )**3.33-l) J/( 1+D ISCOUNT_RATE l**10 ;
390 ICSP = (RC-CTRM + PC/(1 «• CI SCOUNT_RAT £) **3. 33 + RC/(1 * DI SCOUNT_RATE I
391 I END;
3S2 IPUT EDITCNBi SIPf CSP = • , N3, SI Pf CS^I (SKI P ( II , A ,F« 6,2 I » X( 3 I , F ( 6, 2 I • X (
3S3 |B=NEFITS(2i2) = ((CSP + S IP I/MB )*(TI RE_YEARS_L I FE( 1 )/T 1RE_YEARS_U Fb (8>
II + PA * DX;
3'S4~T3E'N=;FTTST£t2)=iV_3'8(TOO VTLE_TT RF_PRICE -IAV RET3EAD_TIREJPRTCt^* ---------
I (TOTAL_MILEAGE_PER_TIRE ( 1 ) / (TOTAL_KILEAGE_PER_TIRE(6) -TOTAL_M1LEAGE_PER
I_TIRE(1) ) )) ;
3S5 — lBHNcFrrT(5,7)=AVC3^0aO^MrLEITIKEi:PRTCE""-(AV_100000_HILEITTRTrPRTCE~*-~
I (TOTAL_f ILEAGc_PcR_TIPE( 1 1 /TOTAL_MIL EAGE_PER_TIRE( 8 I I I ;
I/* CALCULATION OF PHYSICAL ENVIRONMENT BENEFITS */
396 100 I = 1 TO 3 5
397 I BENEFITS1I,A)=ENVR_OUALITY_COSTS;
398 "1 END; -— "
399 I BENEFITS!6,41= 8ENEFITS<6,4)* WASTE DECREASE_PT_PER_YEAR(6) ;
400 lB£Nl=FITS<8-,4)= 3=N2FITS(4|4J*WOIJK<7) - BENEFI TS( 4,4»* ( l*H«* ) *( I/ (1 +DI SC
1 OUNT_T;ATrT*-*rrrRFITT:ArS_L7FE (8) -TIRE^YEAP- S_LIFF(U ) 1 * IYH + DT SCDUNT_RATc '
I J ** ( 2*T I F. =_Y= «H.S_L I Ft ( 8 ) -T I P.E_YSARS_L I FE < 11 );
401 IP5NEFITM 6,4)=35,M;FITSIR»4)* TIRE_YEAHS_LIFE(11/.(2*TIRE_YFARS_LIFE<8) I;
I
t7*""CArtUOTTOK-eF-C^N5=RVATIO»r BENEFITS */ : f
105
-------
OPTIMIZING COMPILER
STMT
I3ENEFITSU.5) = RENEF IT S(l, 1 > ;
|BEN6FITSI2,5I = (CE - CS - CF) / NS5
|BLM5FITS(6,5»= »AOI AL_38S_PROD_COST * (MATERI ALS_PROPORTION+, 3*SO ) *
I WtSTE_D=CRStSE_PT_PEP YEAFU6I;
"
IM7I - ONS_HUNO HI TIRE PRGD_COST*(MATERI ALS.PROPORTI ON+.3*SO )»( 1 «•!/< 1 +
|OISCOUNT_RATE}**TJRE_YEARS_LI?:EmM * TIRE_YEARS_L IFE < 1) / (2*TIRE_YEARS
ILTFETB7I; " '"" ----- - -
407 |COSTS(3,*>=0;
408 I COSTS (TV*T=T)~;
409 |RcNEFITS(3,*)=0;
410 |3£N5F1TS(7,*)=0;
412 (SOCIAL VALUESU) = SUMtBSNEF ITS!I,*)I-COSTS(1, 1) -COSTS (1, 2 I-COST S (I, 3 I
|-COSTSn,4)-CCSTS(I.5)-CDSTSnt6)-COSTS(I,7)-COSTS t AT:
426 JPUT EDIT( 'ASPHALT ADOIT IVE' , INT6RNAL_VALUE t 21 M SKIP.XI 221 , A,X( 1 1 ) , F (7, 2
I)); _
427 "TPUT" EDrTT^TANG~RTCT^2T ICM7rN~TE"RNAL~v/5L"UE f4) ) <~SK rP^xr2"ZT7ATXTn:rtT( 7721
I ) ) ;
426 |PUT EDITC INCINcRAT ICN« , IKTjRNAL.VALUF ( 1) ) ( SKIP,X( 22) , A, Xt 15) ,F 17 ,2) ) ;
429~"lPUT~£OIf(rPY- , A,X( 3
I), FIT, 21);
430 JPUT EOIT(«*5TfiFADJNGl,INTERNAL_VALUE(6)) ISKIP,X(?2),AfX(17),Ff7,2)>;
431 " IPUT 50IT< TOO'COO MILE"TIRBS',INTERNAL1VALUE(8I I (SKIP, X(22) , A, X( 10) ,"F< 7,"
12)) ;
432 IRFTURN? ENDi __ ___ _
I ~ " F"
106
-------
OPTIMIZING COMPILE*
STMT
I
434 ICSPftlMT: PROCEDURE;
435 (PUT EDIT(HeADIN;
436 IIP (L=2|L=3|L=4|L=5|L=9|L=6> THbN
IPUT EOTTiPASAf-, <- r,PiP4MvAD ISKIP.XIZO) ,A,A,F( io,3> j s
437 IPUT FDIM'COSTS VIO BbNEFITS USFD IN VALUE DEF INIT IONS') ( S K IP, X(20 I , A) ;
438 (PUT SKIP;
439 IPUT rO!T< PCOSTSP , I.1 )' DO 1 = 1 TO 9) X SKIP ,Xl 221 ,9 '( A.Fmi A,"X(2I H J "
440 (PUT FDIT
-------
APPENDIX C
DATA INPUTS
The data on the following pages were printed by Tirec II
and represent our best estimates of the data relevant to the
Tirec II cost/benefit analysis. The sources of the data, when
relevant, are listed in the Appendices; otherwise the data
represent common sense choices of numbers such as the value of
.08 used for the discount rate.
Some of the data was taken from the author's doctoral
dissertation, "The Management of Waste Passenger Car Tires",
completed at the Wharton School, University of Pennsylvania, in
1974. Some data used in this 1974 Tirec I work was left in
Tirec II, but was not used. This included:
CAPITAL_PTPD_CONVERSION_COSTS=2750,
RET_OPP_COST_TO_MANUFACTURERS=21.00,
PLANT_SIZE_TPD=10000,
The variable names of Tired were written out so as to be
understandable without reference to a list of definitions. For
example: "DISCOUNT_RATE" is the name used in the Program to
represent the discount rate. These data are listed on the
following page, the first page of data. The second data page
Includes new variables defined for the Tirec II research.
These data were given identifiers (names) which are the same as
is given In the glossary of definitions at the end of this
report except that the subscript letters could not be printed
by the computer/ The subscripts are printed as regular letters
in their expected positions, however. For example:
SL = SL in Tirec II
Pc = PC in Tirec II
Thirty-seven new variables were added to the Tirec program
as part of the Tirec II research.
108
-------
CATA
AV_lOCOOO_wilE_Tl RE_PRI CE = 107,
CUkP_PROFIT_TAX_R4TE=.22,
DISCCUNT_PATE=,08,
OfcSfRUCr IVE_DIST_PRODUCTS_PRICE=.4fc,
AV_RhTPEAD_TI » t_PR I CE=1 6 .22 ,
CnAL_PRICE_?FR_TON=45,
UND_PRIC6_PER_ACRE=1GJCG,
BtLTED_BIAS_PROO_COST=15.00,
RET_PROC_COST=8.92,
AV_BELTED_6I AS_TJ RE.PR I CE=37 .02 ,
CAPIT0l_PTPD_CQNVERSION_CCSTS=275C,
«!r r_CPP_COST_TQ_MANUFACTURER S = 21 .00,
PLAIMT_S I Z£_Tpn=loOOO,
/iDMI N_MKTG_CnST_FAC F CP_3BOOO_MI = -. 35 ,
COSTSIlf6)=.52f
COSTS(3,6>=, 17,
CCSTS(5,6)=.25,
AV_DtAL?PS_MOKTHLY_PENTAL=lCCOt
GKAOING_COSTS=. i3,BATCH_cct.LEcnoN_cosTS=. 57,
HAUL_CCSTS=.ll,HANDLING_CCSTS=.02,
GKINDING_COSTS=.43,
MlLLAGL_USfc_PER_YEAR=10COO,
TOTAL.MLtAGS.PEfi^TIRS: (11=^*0000,
TCTAL_MILEAGc_PFR_TIRFl2
TOTAL_MLEAGci_PER_TIRE(3
TOTAL_yiL£AG£_PER_TI Rt (4
TOT AL_M L£AGE_PFR_T I RE ( 6
TCTAL_MlLcAGF._PER_TIPE( 7
TOT =.50,
VIRt CARCASE . VALUE_.PROPCPTI CN=,80 ;
RAMFLEX_PRICE = 2,
109
-------
SL
ML
HC
CT
0!
DQ
or.)
ow
OS
ID
OL
EXL
=
=
=
=
=
=
=
=
=
=
=
=
,275,
.250,
.40,
.- 15,
.35,
.25,
.11,
.35,
.40,
.20,
.3C,
19.62,
EXAV = 40.03
UW
RB
UL
TW
PD
GA
NT
NS
AB
=
=
7
=
•=
=
=
=
=
15000,
.70,
ICCOO,
,25,
7.5,
.5,
,07,
.07,
3133,
RC=L1013,
DC = 7,
00.034,
OX=.002,
PC=.08,
P0=7.50,
PA = 45 ,
SR = .23t
SO = .250,
Ct = l.Slt
CF - .65,
CS = .91,
CY = .05,
RRC = .75,
110
-------
APPENDIX D
ROAD REPAIRS: TIRE ASPHALT RUBBER MIX (B^) BENEFITS
The United States has entered an era of road maintenance and repairs;
the major road construction work of the past decades has, for the most part,
been completed. As time passes, these many roads built in the construction
era will develop cracks, potholes, unevenness, and other failures.
To extend the useful life of deteriorating roadways, gen-
erally accepted restoration typically involves the application
of a thin asphaltic overlay...over the cracked and otherwise
deformed pavement. Historically, however, the application of
these thin overlays (generally of 4 inches or less) results in
a new complex problem known as "Reflective Cracking"--defined
as the migration of a subsurface cracking pattern into and
subsequently through the overlay structure...Once the overlay
is fractured, general erosion occurs which severely affects
performance and requires further and costly maintenance (1).
The use of waste tire rubber in road repairing appears to have signifi-
cant benefits in avoiding the costs, inconveniences, and road hazards involved
in the repair of reflective cracks over and over again. In a study of various
methods of road repairs, Arizona found that asphalt rubber repairs reflected
only four percent of the underlying cracks in three years while control sec-
tions reflected seventeen percent of the cracks (2). The Arizona experiences
indicate that roads repaired with tire asphalt rubber stay repaired for quite
a while:
"the surface is in excellent condition and shows only
minor crack reflection after eight years of service" (3);
"After six years of service, this Project has required no
maintenance and shows only a few minor reflective cracks" (4).
The asphalt rubber process includes along with semi-conventional re-
pairs, the placement of a 1/4 inch overlay consisting of 25 percent worn
tire rubber and 75 percent asphalt. The engineering details of the process
are described in the literature 15-6).
The Arizona Projects might have been successful due to the favorable
climate of the Phoenix area where they were carried out. Accordingly, in
August of 1973 a tire asphalt rubber road repair project was carried out at
a severe winter weather location— Flagstaff, Arizona. Flagstaff is at an
elevation of 7200 feet with temperatures as low as -40 degrees farenheit
(-5 degrees Celsius ) and frost depths to three feet. The Project was
111
-------
reported, in 1976, to have "performed excellently with zero maintenance to
date". It appears then, that the tire asphalt rubber road repair process will
be valuable in a range of climates.
The highly favorable experiences of Arizona, however, have not yet been
duplicated in a significant number of other states. Some tire asphalt rubber
road repairs have been made in California and in South Dakota. California
has indicated that tire asphalt rubber seems to work as intended. South
Dakota has had poor results with the process (7). The poor South Dakota
results may be due to the use of alternative quantities and types of rubbers
used in repairs and/or due to different methods of application. A four year
U. S. Environmental Protection Agency Project to document experience with the
tire asphalt rubber repairs is in process and will be completed in 1981.
The Arizona and California experiences provide reasonable documentation
with which to estimate the benefits of the tire asphalt rubber road repair
process.
TIRE ASPHALT RUBBER REPAIRS
The benefits of the tire asphalt rubber repairs might be represented as
the road repair costs avoided by use of the Process.
Phoenix "streets require a new (conventional) seal coat every
three to five years. The asphalt rubber (tire rubber asphalt)
seals have exceeded seven years to date and it appears that they
will last at least ten years" (8).
According to these estimates, in ten years we might need one tire asphalt
repair or two or three conventional repairs.
The city of Phoenix, in 1972, reported the costs per city block, of
conventional repairs, to be $1900. Comparable tire asphalt rubber repairs
were reported to cost $2400. Arizona, in 1976, reported: (1) costs of $2.95
per square yard for a (conventional) three inch asphalt concrete overlay with
a one half inch asphalt concrete finishing coat; and (2) costs of $2.32 per
square yard for 1 1/4 inches of asphalt concrete followed by about 1/4 inch
of the tire asphalt rubber chip coating and one half inch asphalt concrete
finishing coat. These costs include "the total of all ingredients and oper-
ations and are estimations based on...a size job...generally more than 40,000
square yards". The cost of the tire asphalt rubber chip seal alone, accounts
for about $.75 of the $2.32 on the average. California reported, in 1976,
average costs of $1.91 per square yard for one to one and one half inches of
asphalt overlay.
We multiplied 1976 cost figures times the 3733 square yards ( 3121.26
square meters) of the Phoenix block mentioned earlier in order to obtain 1976
"costs per block" useful in estimating the benefits of the tire asphalt rubber
process. According to Arizona estimates, a "conventional" repair of the
Phoenix block would cost $11,013 and would last as little as three years; a
tire asphalt rubber interlayer repair would cost $8661, and would, we estimate
based upon the Phoenix experience, last ten years. According to the
112
-------
California information, conventional repairs to a block would cost $7130
and would last as long as seven years. We regarded the $8661 asphalt rubber
cost as representative for California repairs.
ARIZONA ROAD REPAIR BENEFIT CALCULATION
Demolition and reconstruction of a city block, in 1977, might cost in the
neighborhood of $86,000; sometimes reconstruction is necessary. Relatively
thin repair overlays are suitable temporary substitutes for reconstruction as
long as the coats do not raise the road so high as to cover curbs, storm
drains, etc. One two inch thick tire asphalt rubber overlay, according to
Arizona experience, can last ten years. Three 3 1/2 inch thick conventional
overlays, a total of 10 1/2 inches thickness might be required in ten years
as an alternative. Assuming that after 10 1/2 inches of road thickness build-
up occurs the road must be reconstructed, we can say that five tire asphalt
rubber road repairs may be used in place of both nine conventional 3 1/2 inch
seals and two major road constructions (Table D-l). In addition to the costs
avoided, we might say that the highway repair agency could invest these funds
not spent to earn money during this period.
We took the present value of the repair costs avoided in ten years (the
10th to 20th years in Table D-las if year 10 were the present time) plus the
present value of the interest earnable in ten years on the savings from costs
avoided, as one estimate of the total incremental benefits, in ten years, of
tire asphalt rubber repairs to one city block. This did not include the pos-
sible substantial savings in major reconstruction beginning in year 20. We
multiplied this by 4/10 to convert this to an average rate per four years.
We divided this result by the number of worn tires used in tire asphalt
rubber reapirs to a city block. The result was an estimate of the benefits
of the tire asphalt rubber process per waste tire utilized and per four years.
We added to this the value of steel recovered from the waste tire in
processing.
The present value of the repair costs avoided (cost savings) in ten years
was represented as:
Rc Rc
CSp = (Rc - Ctra) + (1+1)3.33 + (1+1)6.66
Where: RC = conventional repair costs to one city block
^tra = tire asphalt rubber repair costs to one city block
At a discount rate of ten per cent, and 1977 costs- RC = $11,013 and
ctra = $8>661 "the benefits are:
$11,013 $11,013
($11,013 - $8,661) + (L1)3.33 + (1-1)6.66 = $17>060
113
-------
TABLE D-l. ROAD REPAIR AND RECONSTRUCTION MODEL COSTS
.£
Beginning
of year
0.00
3.33
6.67
10.00
13.33
16.67
20.00
23.33
26.67
30.00
33.33
36.67
40.00
43.33
46.67
50.00
53.33
56.67
60.00
Conventional repairs
costs 3^ inch
$86,000 first
cycle
-
$11,013
$11,013
$11,013
$86,000
-
_
$11,013
$11,013
$11,013
$86,000
-
_
$11,013
$11,013
$11,013
$86,000 second
cycle
Tire asphalt rubber
repairs costs 1 3/4"
$86,000
-
-
$ 8,661
-
-
$ 8,661
-
-
$ 8,661
-
-
$ 8,661
-
_
$ 8,661
-
-
$86,000
Cost
savings
_
-
_
$ 2,352
$11,013
$11,013
$77,339
-
_
$ 2,352
$11,013
$11,013
$77,339
-
_
$ 2,352
$11,013
$11,013
-
Note: This assumes: (1) that original and reconstruction work lasts ten years
and, (2) that a second asphalt rubber repair (and the third and fourth
and fifth) would last ten years as does the first. This is not certain.
The present value of the interest earnable on the funds made available
by avoiding these costs was represented as:
)10-l Rc(l+Ig)6-66-l
($11,013-$8,661)U.1)10-1 $11.013(1. I)6-66-! $11,013(1. I)3-33-!
(l.l)10 (l.D10
Sip = $5,739.20
114
-------
The combined sum of the costs savings and interest benefits is $22,799.63;
the benefits each four years, including the revenues from recvoered steel, per
solid waste tire are:
Benefits =
$22,799.63
10
+ $.07 = $37.44
Where
= the number of solid waste passenger car tires used in tire asphalt
rubber repairs to a city block
Nb = UpPGAbN
Ilbs. tire rubber \/gallons
gallon /I 1 Sq Yd
Sq. Yards
1 city block
No. of worn tires
Ib. tire asph. rb.
And
worn tires
1 city block
Wp = the proportion, by weight, of tire asphalt rubber which is
worn tire rubber
P = the weight, in pounds per gallon, of tire asphalt rubber
G = the application rate, in gallons per square yard, for asphalt rubber
Ab = the area, in square yards, of a city block (Phoenix, Ariz. 3733
square yards)
N = the proportion of a tire that it takes to recover 1 pound of tire
asphalt rubber
An example calculation follows:
/ 7.5 Ibs
gallon
H.5 gallons \l 3733
1 sq. yd. |ll ci
sq yds \| .07 worn tires \
city block/lib, crumb rubber/
244 tires
1 city block
115
-------
These gross benefits are substantial; they are, however, misleading with
respect to current tire asphalt rubber road repairs since the rubber current-
ly used is but tread rubber ground from worn tires. In current tire asphalt
rubber procedures many worn tires, less some tread rubber, remain to be dis-
posed of. Current tire asphalt rubber repairs use 60 pound bags of tread rub-
ber which were ground from 175 worn tires. The proportion, "n", above, for
this procedure is 2.917; the number of tires used in a city block at this rate
is 10,208; the gross benefit per tire drops to $.89 per tire in this case, and
in addition, 8165 tires per city block repaired still remain to be disposed
of. Without utilizing the entire amount of rubber available in the worn tire,
the benefits of tire asphalt rubber, on a per tire basis, are much lower.
Cryogenics can be used to separate worn tires into three parts; rubber,
metal, and fabrics so that virtually all of the tire rubber can be recovered.
Steel belted radial tires are processed by cryogenics just as easily as non-
steel belted tires. Cryogenics together with solid separation systems pro-
duces saleable metals and fabrics in addition: three pounds of steel and
three pounds of fiber may be recovered tor each waste tire processed. These
provide additional gross benefits for the cryogenics/road repair alternative.
;^.., Of course the costs of cryogenic processing must be included in the analysis
V| in the appropriate place.
i"£'
ijyj' The three pounds (.0015 tons) of steel recovered is wortn S.07 when
$£t valued at current prices of $45 per ton; no value data for the fibers recov-
;•;;! ered was available. The benefits of the tire asphalt rubber process, then,
.Jl* are B-ji = 37.44 per tire per four years. This includes $37.37 costs avoided
•^ and interest savings plus .07 for recovered product values.
«•«•»•'
y^ Each worn tire processed for use in tire rubber asphalt eliminates one
waste tire and its associated processing costs. Waste processing costs are
I $.92 for a tire landfill (9). Consequently, the tire rubber asphalt altern-
(flC ative realizes an additional $.92 benefit per tire each four years.
3U
jLj The total road repair and decreased waste benefits tor the road repair
tire handling alternative, B-J-J = $38.36.
CALIFORNIA ROAD REPAIR BENEFIT CALCULATION
The asphalt rubber benefits are smaller according to California road
repair practices and/or when treated in a more conservative fashion. Assum-
ing that construction or reconstruction lasts ten years, conventional re-
pairs last seven years, and asphalt rubber lasts ten years, Table D-2 was
prepared.
This table probably illustrates the current perception of most highway
repair officials with respect to the asphalt rubber process. It appears in
any given year to be more expensive ($8661 versus $636b) and does not provide
any benefit in terms of decreased costs. The present value (10%) of the
costs for the two cases are approximately equal.
116
-------
TABLE D-2. CALIFORNIA ROAD REPAIR COSTS
Conventional Tire asphalt rubber
Year 1 1/2 inch AC 1" AC + 1/4" AR + 1/2" ACFC
0
10
17
20
24
30
31
38
40
45
50
52
59
86,000
6,366
6,366
6,366
6,366
6,366
6,366
6,366
86,000
86,000
8,661
8,661
8,661
8,661
8,661
86,000
The 1 1/2 inch asphalt concrete and 1 3/4 inch asphalt rubber repairs
are not comparable, however. The asphalt rubber roads, as indicated above,
haveTewer reflected cracks. In addition the asphalt rubber repairs are
fewer with less nuisance and accident hazards created. And, as indicated
above, it may be that asphalt rubber lasts more than ten years. Conse-
quently, we used the Arizona estimates in calculating the benefits of the
asphalt rubber process. We investigated a lower conventional repair pro-
cess cost (Rc = 6366) in both the framework of Table D-2 and of the formulas
given.
LIMITS OF THE TIRE RUBBER ASPHALT PROCESS
The number of worn tires which may, potentially, be used in tire asphalt
rubber repairs each year, in the United States, may be symbolically repre-
sented as:
V 587IWs
Where RL = the mileage of cracked roads repaired, temporarily, each year (as
opposed to rebuilt roads).
Rw = the average width, in feet, of a U. S. road.
Ns = the number of worn tires used in one square yard of tire asphalt
rubber road repairs. N
* The constant 587 is used to convert the term "RLRW" to square yards.
117
-------
Data on the mileage of temporary repairs carried out each year in the Uni-
ted States is not readily available. It is possible to gain insight on the
market for the tire rubber asphalt repairs by a calculation of the number of
miles which could be repaired with the two hundred million waste tires gene-
rated each year. To do this we set "T" equal to 200,000,000, assumed an
average road width of 40 feet, and solved for R, .
RL =
587
200000000
R. = = 131,044 miles
L 587(40)(.065)
131,000 miles (210,821 kilometers) of road repair work will be needed
each year to absorb all of the solid waste tires generated. United States
streets and roads, in 1974, accounted for 3,815,807 miles (6,139,633 kilome-
ters); almost all (3,000,000 miles or 4,827,000 kilometers) of these roads
are asphalt. All of the worn tires currently generated could be used in the
tire asphalt rubber process, assuming that a road requires repairs each three
years, and that fifteen percent of these repairs are needed for fatigue type
cracking of the sort controlled by asphalt rubber (10). If the average time
between road repairs were five years, 90,000 miles (144,810 kilometers) per
year would need repairs; for an average life of seven years, 57,500 miles
(92,517 kilometers) per year would need repairs. It would appear, then, that
tire asphalt rubber is potentially a fairly large scale process.
ALTERNATIVES TO ASPHALT RUBBER IN ROAD REPAIRS
Arizona found that not only asphalt rubber, but also four other pro-
cesses control reflective cracking of highways.
TABLE D-3. ROAD REPAIR TREATMENTS VERSUS REFLECTIVE CRACKING.
1. Heater scarification and pretroset
2. Tire asphalt rubber (between AC and ACFC)
3. Fiberglass
4. Heater scarification and reel ami te
5. 200/300 penetration asphalt
Control sections
3
4
5
6
8
17
SOURCE: "Prevention of Reflective Cracking in Arizona Minnetanka-East, A
Case Study", Arizona Department of Transportation Report Number 11,
HPR-1-13(224) May 1976.
118
-------
Petromat, Is yet another product which seems to be in fairly high demand
for road repairs. To the extent that any of these cost less than asphalt
rubber an opportunity cost could be associated with use of asphalt rubber in
the place of the best alternative.
Finally, highway repair officials are carrying out research on recycling
road asphalt. Three alternatives: hot mix recycling, cold recycling with
chemical options, and surface recycling are being investigated (11). It is
possible that one of these may be desirable relative to asphalt rubber. High-
way management officials should be convinced of the benefits of asphalt rub-
ber; they should be consulted concerning a requirement for widescale use of
the process; such a requirement would perhaps be very restrictive from their
viewpoint.
119
-------
APPENDIX E
100,000 MILE TIRES:
PROFITS, PRODUCT SERVICE LIFE, AND SOLID WASTE MANAGEMENT
The design of manufactured products involves analyses and choices with
respect to physical characteristics, marketability, performance, service life,
maintainability, and other factors. Design factors may have offsetting
effects; a better performance with respect to one factor may be detrimental
to performance with respect to another. Product design balances the levels
of achievement of these factors. Balance requires analysis of the costs and
benefits associated with design alternatives in order to develop information
on levels of achievement. Some costs and revenues (benefits) of conventional
design analyses are internal to manufacturers. Other design costs and bene-
fits are external to manufacturers; these atfect consumers and society in
general: Product design service life, for example, is proportional
to (a) the quantities of solid waste generated; (b) the rate of use of fixed
quantities of natural resources: and (c) the rate of cost to consumers for
services provided by products. Costs and benefits affecting society in gen-
eral have either not been included in product design analyses or have not been
adjusted to reflect societal attitudes of the 1970s; perhaps they should be.
We analyze the internal and external costs and benefits associated with
the design of passenger car tires. Longer service life appears to be not
only a promising solid waste management alternative, but also promises:
(1) improved total profits for the tire industry, and (2) a better deal for
consumers.
COST TO CONSUMERS
Product design determines the cost to consumers, per unit of time, of
the services provided by a product. One could say, disregarding maintenance
and the time value of money, that a tire costing $60, which provides 4 years
of service, costs $15 per year; should the tire last lu years instead, the
cost to the consumer would be only $6 per year. Service life design, to-
gether with sales price, determines this cost to consumers. In the current
era of increasing inflation and cost consciousness, it is likely that con-
sumers value increased product service life more highly. The comfort of a
tire's ride, for example, a primary design criterion in past years, may have
diminished in relative importance; the economics of service may today be more
important. Product designers should take notice of changes in consumer needs.
These changes can cause the optimal design balance to change.
120
-------
SOLID WASTE QUANTITIES
In addition to consumer costs, design service life determines the solid
waste quantities which pose problems and costs for public managers, engineers,
and society. A tire could generate one worn carcass every 4 years, or one
worn carcass every 10 years, depending upon its design life. Worn tire car-
casses are costly and cause special problems in public waste disposal. The
effects of product design lives upon the solid waste generation rate, and upon
these costs, might also be taken into consideration in manufacturers' product
design decisions. The increased requirements and costs of solid waste manage-
ment may have, like the consumer service cost factor, changed the optimal
product design balance toward longer service lives.
CONSERVATION OF RESOURCES
Design service life is related to the availability and use of nonrenew-
able natural resources such as oil. Short service life products use up
fixed supplies of resources at a faster rate than do long service products.
The world supply of petroleum (with consumption growing at the average annual
rate of consumption prior to 1972) has been estimated to be adequate only
through the year 1992 (12). Tires use petroleum in fair amounts:
(a) as a material ingredient in synthetic rubber production;
(b) as a material ingredient, and finishing medium, for tire cord yarn
production;
(c) as an ingredient in the manufacture of carbon black for tire material;
(d) in rubber compounding (mixing the various types of rubber);
(e) as an energy source in production.
On the average, seven gallons (26.5 liters) of crude oil are used in the
manufacture of a passenger car tire; this includes five gallons (18.93 liters)
as a material ingredient and two gallons (7.57 liters) in the form of energy
(13). While the 25,000 mile tire design uses 7 gallons of oil, for each tire,
each 2.5 years, a 100,000 mile tire might use but 7 gallons each 10 years.
Obviously, longer tire design service lives will conserve valuable oil re-
sources; wire, fabrics, and other tire materials are similarly conserved by
longer usage of the tire carcass. Longer service lives use valuable resources
at a slower rate.
Some types of 100,000 mile tires will be heavier causing increased con-
sumption of gasoline in autos. This effect does not negate tne conservation
benefit, however, but rather diminishes it.
Consumers' attitudes with respect to conservation and environmental
quality have undergone well documented changes in the past decade. A great
respect for conservation and environmental quality, including proper solid
waste management, has developed. The new attitude is clear in the National
Resource Recovery and Conservation Act of 1976. These changes in attitude
affect consumer buying habits in the area of design service life, the current
shift to the purchase of longer lived steel radial tires is evidence of this.
Perhaps tire design service lives even longer than that of steel belted
radials are desirable to consumers.
121
-------
THE 100,000 MILE TIRE
The socially conscious manufacturer may respond to these factors by re-
computing the optimal balance among the factors important in product design.
It would seem, however, that increased design service lives portend drastical-
ly decimated markets and profits. These are contrary to the manufacturers'
primary task which is to survive and to obtain healthy profits. With this
realization, tire manufacturers avoid the longer service life idea via the
mystique of technical infeasibility. Who would propose a 100,000 mile tire!
But what if longer product service lives, and healthy profits for the tire
industry can together be realized? What if consumers want 100,000 mile tires?
And what of future society where radically improved service lives may be a
reality, not by management choice, but due to resource limitations and solid
waste pollution?
We find that longer lived products can provide the same level of total
profit to the tire industry, can be more economical to consumers, and, at the
same time, can conserve resources and decrease waste quantities. Further, we
believe consumers will want them when all the facts are known.
£ 100,000 MILE TIRES: TECHNICAL FEASIBILITY
2 It is technically feasible to manufacture passenger car tires which will
5j[ last on the average, under normal conditions of use and recommended infla-
*« tions, 100,000 miles (160,900 kilometers). Truck tires, in current practice
$ obtain 115,000 (185,035 kilometers) of original life before the first re-
treading (14); truck tires are designed differently than passenger car tires,
* however; they use different rubbers and are of different dimensions. Con-
£ sumers, when made aware of the 100,000 plus mile truck tire life could demand
tires designed to be similar to truck tires. They could, in some cases, buy
' currently available truck tires.
L>
„ Design Factors Controllable By Tire Engineers
J
Tire design engineers have at least six basic design factors under their
control which could be used to improve passenger tire service life (15):
1. Tread compound - the recipes for tread rubber may be adjusted by type and
percent of elastomer, type and percent of carbon black, type and percent
of oil extenders, dispersion, and state or cure.
2. Tire construction type - bias, radial, or bias belted designs may be
chosen.
3. Tread pattern - the number of ribs, groove width, element geometry, unit
tread pressure, type blading, skid depth, footprint area may be changed.
4. Mold shape - the shape of the mold used in vulcanizing may be altered.
5. Tire dimensions - diameter, tread width, aspect ratio, tread radius may
be changed.
6. Tire fabric - (in either the carcass or belt) cord size, cord count, cord
processing, composite, cord angle, number of plies, lay up may be changed.
122
-------
Clearly, there are numerous combinations of factors from among these which
might be investigated with the idea ot extending the average tire service
life to 100,000 miles (160,900 kilometers).
Three Alternative Designs For 100,000 Mile Tires
Three technological alternatives tor the development of 100,000 mile
passenger car tires are listed below.
1. Large High Pressure Tire (LHP). Redesign autos to use the larger tire
sizes; increase operating pressure in the tire; and redesign the auto-
mobile suspension system to absorb some of the increased harshness of
the ride.
2. Thick Tread-Hide Tire (TTW). Use truck tread rubber, increase the thick-
ness of the tread rubber on conventional passenger steel belted radial
tire carcasses, to the maximum safe thickness; widen the tire as in cur-
rent sporty wide tires.
3. Durable Tread Rubber (DTR). Develop a highly durable tread rubber which,
with the same tread thickness as in current passenger tires, and at the
same low inflation pressures as have current tires, will obtain 100,000
miles (160,900 kilometers).
There are, in addition, other alternatives, as indicated above. We
examine the LHP and DTR tires briefly below. The TTW tire is then examined
in detail.
The LHP 100,000 Mile Tire
The Large High Pressure Tire (LHP), contrary to popular belief, is
technically feasible.
"If autos were redesigned to make it possible to fit them
with much larger tires, then 100,000 miles is possible with
no new developments. To illustrate, assume a 3600 Ib vehicle,
900 Ib on each tire. A 6.95-14 tire is rated to carry 1050 Ib
and on this vehicle would be carrying only 86 percent of its
maximum load. Let's replace that tire with a 8.85-14 tire which
can carry 1580 lb...That tire is carrying 57 percent of its max-
imum load. This change would increase the service life from
40,000 to perhaps 65,000 to 70,000 miles. If we increase in-
flation pressure from 24 psi to 40 psi, the load bearing capa-
city of the larger tire would be increased to 2100 Ib and the
load would be 43 percent of the maximum safe load and the tread
life would probably exceed 100,000 miles." (16)
The costs associated with the LHP tire would include the incremental
purchase costs of the larger tire as well as some one time costs associated
with vehicle and tire production:
123
-------
"The larger sized tire requires changes in fenders and
axles, in steering systems; high pressure tires would require
new suspension systems that would be capable of filtering out
high frequency road induced vibrations which the tire now ab-
sorbs. If I am correct, there is no problem as far as the tire
is concerned; it is the vehicle that must be modified. As the
tire company representatives point out, they respond to auto
manufacturers' requirements and if they change the vehicle
design these solutions are available." (16)
The DTR 100,000 Mile Tire
The Durable Tread Rubber Tire (DTR) is, evidently, not yet technically
feasible. The idea here is to maintain the current size, shape, and operat-
ing characteristics but to replace the tread rubber with a highly durable
elastomer that will last 100,000 miles (160,900 kilometers).
Plastic tires have been molded by the tire industry, but have not been
commercialized. Rubber, with such excellent wearing properties as with plas-
tic may be limited in performance with respect to traction. The tire indus-
)("•' try has carried out a survey of its experts and has estimated that there is
$£. greater than a fifty percent chance that the durable tread rubber with ade-
<£, quate traction capabilities will be developed by 1990; according to the sur-
ft£ vey some experts thought that 100,000 mile DTR tires might be available as
fo early as 1983 (17). According to the experts, then, DTR 100,000 mile tires
«!•% are destined to appear in the not too distant future, but are not yet tech-
«""* nically developed.
fL
H* The TTW 100,000 Mile Tire
£
I The TTW tire offers an alternative to the largeness and higher operating
\ pressure of the LHP 100,000 mile tire. TTW 100,000 mile tires are technically
-------
Passenger Tire Tread Rubber Thickness
Tire industry personnel commonly represent tread rubber thicknesses in
thirty-secondths of an inch. Table E-l indicates current thicknesses of tread
rubber used by retreaders for passenger and truck tires.
TABLE E-l. 1977 TREAD RUBBER DEPTHS
Tread thickness
Tire type
Uncureu
Cm Inches
Cured
Cm Inches
Passenger cars,
Passenger cars,
Truck tires,
Truck tires,
conventional
snow and mud
highway or rib
lug design
0.95
1.11
1.58
1.91
12/32
14/32
20/32
24/32
0.87
0.95
1.43
1.75
11/32
12/32
18/32
22/32
SOURCES: (1) Mohawk Rubber Co., Akron, Ohio letter of February 23, 1977 from
R. W. Eckard to R. Westerman.
(2) Oliver Rubber Company, Oakland, California letter of February
22, 1977 to R. Westerman.
Thicker treads than the 14/32 inches and 24/32 inches indicated are man-
ufactured for specialty applications such as the "Highway Rib Extra Tread"
truck tire, for taxi tires, and for passenger snow tires. Taxicab tires have
utilized extra thick tread rubber in original manufacture together with re-
grooving, cutting a new tread pattern into the tire when the first is worn
off. These specialty tires are limited to a general speed of, perhaps, 40
miles (64 kilometers) per hour with short (20 minute) spurts to 50 miles
(80 kilometers) per hour. Maintaining higher speeds for longer periods is
reported to cause heat buildups in the tires which may cause damage to the
tires.
The thick tread rubber alternative for 100,000 mile tires would indicate
that a tread rubber thickness.of 27.5/32 inches (2.2 cm) cured would be neces-
sary; this is 2.5 times the cured thickness used for conventional passenger
car tires. The truck designs indicate that as thick as 22/32 cured inches
(1.75 cm) may be used, yet this is for generally larger tires. Truck tires,
however, use different tread rubbers than do passenger car tires:
"Service conditions are more severe for truck tires, therefore
the rubber is generally tougher than for passenger car use." (18)
"Should a good truck grade of rubber be used on a passenger
tire it would produce mileage equal to or in excess of new tire
mileage." "Truck tire compounds...are of higher quality."
Truck fleets who do keep records...insist on the highest
qualities of rubbers." (19)
125
-------
It seems, then, that less than 27.5/32 (2.2 cm) inches of tread rubber
will be needed for a 100,000 mile tire if truck tread rubber is used.
Another factor bearing on the thickness of the tread rubber needed for
a 100,000 mile tire is the wear rate:
"Bias tires wear at a logarithmic rate indicating decreas-
ing wear with increasing mileage. This decrease in wear rate
can be attributed to a progressively increasing tread radius
and to the tread elements which become more rigid with wear
and thus, do not exhibit as much movement through the ground
contact area." (20)
These same factors, increasing tread radius and increasing rubber rigid-
ity with wear, should be at work in steel belted radial tires. Consequently
the tread rubber required for a 100,000 mile tire, based upon this factor
alone, would be less than the quantity indicated by the direct proportion
taken above, 27.5/32 inches (2.2 cm); as the design service life is increased
the additional tread rubber required is in less than a linear proportion.
Figure E-l may be used to explore the tread rubber thickness needed when
both (1) the use of truck tread rubber, and (2) the logarithmic wear rate are
taken into consideration. Figure E-l indicates that, to obtain 100,000 miles
from a truck tire, .62 inches of truck tread rubber would be needed under
typical wear conditions and .1 inches under slow wear conditions; these fig-
ures are for bias truck tires operating at much higher pressures, however.
We plotted estimated passenger car tire lines on Figure E-l. Manufact-
urers now offer tires guaranteed to last 50,000 miles. To this basic steel
belted mileage we added twenty percent based upon the wide tire concept:
"...the ultra-wide radial is reported to give 20 percent
more tread wear than a regular radial tire which is already
far better than a conventional bias ply tire. In addition,
it gives better high speed performance because of the add-
itional rubber on the road. It does not give any cornering
trouble as ordinary radials sometimes do at high speeds." (21)
This resulted in a steel belted radial tire expected life of 60,000
miles. We assumed that the effect of the general decrease in the speed limit
to 55 miles per hour, a 10 percent advantage, perhaps, in tread wear over the
older high speed limits, had been included in the 50,000 mile guarantee manu-
facturers' boast.
The effect of using truck tread rubber in lieu of passenger tread rubber
could be estimated to increase mileage by as much as sixty percent. "The
average mileage obtained from a retreaded radial (steel belted) is 25,000 to
40,000 miles depending on the type of tread rubber used." (22) We allowed,
however, that the selection of the highest quality of truck tread rubber would
increase mileage of our TTW tire a modest ten percent, to 66,000 miles. We
placed a point on Figure E-l at the point where 66,000 miles intersects with
the current design depth .41 inches, and connected this point to the common
126
-------
TIRE SERVICE LIFE MILEAGE IN THOUSANDS (Log Scale)
1.0
.7
.5
- 3
-------
point of the two truck tire lines as an origin to establish an estimate of
the TTW 100,000 mile tire tread wear rate line. The TTW 100,000 mile tire
tread wear rate line. The TTW line indicates that about .55 inches (1.397 cm)
of truck tread rubber will be needed for 100,000 miles.
This represents an increase in tread depth of .14 inches (.34 cm) or
4.5/32. A total thickness of 17.6/32 inches of truck tread rubber is re-
quired. This thickness is less than the 20/32 commonly used by trucks. If
4.5/32 of truck grade quality tread rubber can be added to the best quality
ultra wide steel belted radial tires, a feat which seems realistic according
to Table E-l, we will have a TTW 100,000 mile tire.
Strength. Durability, and Safety of 100.000 Mile Tires
The extra tread rubber will, after a certain thickness is reached,
however, undergo heat buildups which may cause the tire to fail. In addi-
tion, tires with such thick tread rubber may not handle as well as do current
passenger tires. There are questions of safety associated with the thick
tread rubber tire. In fact, there are questions of safety associated with
any tire designed to go 100,000 miles. Can a tire carcass—as well as a
thicker tread—last through 100,000 miles of road hazards such as stones and
potholes? We examine these questions in order to establish the technical
feasibility of 100,000 mile tires.
The carcass of existing steel belted radial tires has been judged by
some tire industry personnel to be adequate for a service life of 100,000
mi 1es:
"In analyzing the tire, the carcass is probably adequate"...
(for 100,000 miles)..."since it is already retreaded and
generally performs well even in two retreads for many." (23)
"There is no problem as far as the tire is concerned; it is
the vehicle that must be modified." (24)
There is no mention, in the tire literature, of the tire carcass deter-
iorating with age, except for the problem of sidewall cracking. Sidewall
cracking is a chemical reaction via which cracks develop in the tire sides
over time, generally after six years. Sidewall cracking is an aesthetic prob-
lem, not a cause of tire failure. Even if sidewall cracking would be more
serious sidewall rubbers which can eliminate this problem are reported to be
available; anti-oxidants can be compounded into sidewall rubber to accomplish
this.
The ability of any tire to withstand 100,000 miles of service life in-
cluding encounters with road hazards has been questioned (25) The notion that
a 100,000 mile tire has to "survive" 2.5 times as many potholes, rocks, and
other road hazards implies that: (1) an average driver routinely encounters
a significant number of road hazards, and (2) tire rubbers become weaker, and
more susceptible to damage from road hazards, with age--or with each encounter
and (3) these factors will be significantly detrimental to the safety of
100,000 mile tires—perhaps causing injuries and death. None of these
128
-------
implications hold any obvious or absolute truth. The number of road hazards
is relatively small; drivers are not constantly running into rocks, potholes,
and nails. Encounters with road hazards are the exception rather than the
rule.
There is no indication in the literature of tire rubbers or tire struc-
ture weakening with age. We have already reported the contrary with respect
to tread rubber; tread rubber actually becomes harder with age. And it seems
that repeated encounters with road hazards should only cause tire failure if:
(a) the tire was of poor manufacture in the first place; or (b) the road
hazard encounters are of such extent that they could be labelled "abuse".
Some factors related to manufacture which might, together with road
hazards, cause a tire related accident are (26):
bead deficiencies - inadequate insulation, improper splicing; too
small diameter; inadequate or no Chafer
ply deficiencies - inadequate adhesion between plies, defective
splicing, contaminants at interfaces, cord
breaks
tread deficiencies - inadequate adhesion, air entrapment, contami-
nants at interface of tread and carcass
inner liner deficiencies - too thin, inadequate composition, air
entrapment
hinge points - abrupt changes in structure such as belt ends
defective cords - inadequate materials, size, and strength; con-
tamination; overlapping too much; frays.
It is probably true that the additional 60,000 miles of tire service
life of a 100,000 mile tire, in combination with the manufacturing defects
listed above, would cause increased incidence of tire failures; we suggest,
however, that the tire industry inspects and tests to avoid poorly manufact-
ured products since who is to say that defects might not cause death and in-
jury during the first 40,000 miles of a tire. Recently, however, it has been
suggested that all current tires are defective (27).
Quite to the contrary of the explanatory approach taken above, we feel
that 100,000 mile tires will be significantly more safe than current tires.
Tires are not known to be a significant cause of accidents and injury; that
is, of course, unless the tires in question were bald, devoid of tread. Tire
manufacturers have claimed that only .057 percent of vehicle accidents are
tire related. Bald tires, whether 100,000 mile design or 40,000, will be
dangerous when exposed to road hazards. Studies indicate that (1) bald tires
are more susceptible to damage, and that (2) older cars are more prone to be
fitted with bald tires:
"There is evidence of significantly greater hazards of both
tire failure and accidents with bald tires. Tread depth re-
maining on tires decreases with vehicle age...Based upon a
sampling of the general population of...tires in the USA it
appears that one-eighth of the passenger car tires in service
are bald." (28)
129
-------
100,000 mile tires would eliminate much of this danger, due to baldness,
during the last five to seven years of a vehicles life. 100,000 mile tires
would not be likely to become bald until, on the average, 100,000 miles of
service, 10 years of life, was completed. 100,000 mile tires would have a
substantial amount of tread remaining during the last five to seven years of
use whereas current tires do not. 100,000 mile tires, then, should be safer
than current tires. They-will decrease the incidence of accidents and provide
benefits to society in terms of lives saved, reductions in property losses,
and reductions in personnel and paperwork now needed to account for accidents.
The LHP 100,000 mile tire would be an even more safe tire since it would
be underloaded, operating at higher pressures with less deflection, and would
have more body plies. The decreased deflection would be especially important
to increased safe life of the tire.
Even if this were not so, safety technologies are readily available to
tire manufacturers, technologies with which any tire can be made virtually
accident free. These designs could be combined with the 100,000 mile designs
above to provide increased safety:
Self Sealing Tires - usually a tacky coating on the inner liner
surface which has the characteristic of "healing" a puncture
would even in the event that the puncturing object is expelled
from the tire.
The Tire Within A Tire - tires designed to be operable even if
totally deflated, and still maintain reasonable highway speeds
for long distances with total vehicle control, and the avoidance
of destructive damage to the tire.
Traction, the ability of a tire to enable the vehicle to remain under
control on a road, may be affected by the 100,000 mile design. For the TTW
tire, if truck or high quality tread rubber were to have less traction than
current passenger tire tread rubbers, then 100,000 mile tires would not handle
quite as well. Yet the TTW tire is ultra wide with a larger footprint and
this factor, if necessary, could offset the traction effect of the tread rub-
ber used. And traction problems related to accidents are generally caused,
again, by baldness. 100,000 mile tires will not be bald for the greater part
of ten years. Traction, it would appear, could be about the same as with
current passenger tire design, or better. Obviously, however, the traction
factor should be given careful consideration in the detailed design stage
for 100,000 mile tires.
In summary, it appears that 100,000 mile tires, both the LHP and TTW
designs, can be more durable, strong, and safe than current 40,000 mile tires.
We examine next, marketability.
MARKETABILITY OF 100,000 MILE TIRES
Consumers will buy 100,000 mile tires; in a preliminary market survey,
virtually all of the respondents indicated that they (1) were interested in
such tires and (2) were willing to pay from $30 to $150 additional for each
130
-------
tire (29). There are several reasons for this interest:
1. Consumers can obtain 100,000 mile tires when they buy a new car and can,
conveniently and accordingly, include ten years of tire costs in the fi-
nancing of the new vehicle.
2. Consumers can obtain 100,000 mile tires at a price which, in present
value analysis, is cheaper than the costs of the alternative four sets
of tires. Consequently consumers achieve a lower cost per mile.
3. 100,000 mile tires will provide added safety to their own vehicle and to
the vehicles with which they interact on the road.
4. Purchase of 100,000 mile tires will eliminate the need for at least three
distasteful trips to purchase replacement tires; this will include gaso-
line savings, time savings, and avoidance of the confusion associated with
tire brands and types.
5. Consumers can recoup their investment if they sell their car after, say,
three years; the factor of having good tires with 70,000 miles of tread-
wear left will be an asset which will increase the resale price.
6. Consumers can avoid public costs (increased taxes) associated with waste
tire disposal. Waste tire disposal involves, at the least, transporta-
tion costs, expensive shredders costs, and landfill costs; 100,000 mile
tires eliminate 75 percent of the waste tires generated in any year, and,
accordingly, avoid 75 percent of the public tire waste costs.
7. Consumers are very much conscious of the needs for conservation and pro-
tection of environmental quality. They will buy 100,000 mile tires be-
cause they believe in the need for conservation and they value quality
of the physical environment.
The costs to consumers may be, with the LHP 100,000 mile tire, a rela-
tively harsh ride. The principal factor in passenger car tire design has
been riding comfort:
"The original inventors and pioneers of the pneumatic tire
were inspired by the one objective of cushioning a moving
vehicle. The tire has evolved to provide many other essen-
tial properties for the operation of modern vehicles, but
the principle of a soft smooth ride remains a major criterion
and will probably remain the governing factor in design
approaches in the future." (29)
Tire manufacturers would say that, "Consumers, through their automobile pur-
chases demand tires that ride soft; consumers will not buy rougher riding
tires such as LHP tires". We suggest that consumers may not even notice the
difference in ride between 100,000 and current belted tires. We suggest,
further, that oil quantity limitations, inflationary cost increases, and solid
waste pollution have, perhaps, changed consumer attitudes more toward a tire
product design balance which is more economical in use and which conserves oil
131
-------
and avoids pollution and public waste handling costs. The consumers of today
will buy 100,000 mile tires, even if their ride is rougher.
The preliminary design analysis, above, shows that 100,000 mile tires
are technically feasible; there are significant bases upon which to build a
marketing campaign. Why is it then that the tire industry has not already
produced 100,000 mile tires?
A TIRE INDUSTRY VIEWPOINT: 100,000 MILE TIRES
The Rubber Manufacturers Association indicates that the tire industry is
booming; the replacement tire market has grown by leaps and bounds (30).
TABLE E-2. U. S. PASSENGER TIRE SALES (SHIPMENTS) IN MILLIONS
Market Year
Original
equipment
Replacement
1950
37
47
1955
43
50
1960
36
69
1965
51
95
1970
38
133
1975
40
129*
* The 1975 figure was affected by a fairly severe recession.
Is it not "just good business" to keep tire service life short as com-
pared to vehicle life; after all, repeat sales mean repeat profits. This
approach has resulted in the fantastic growth in Table E-2. The larger the
annual market volume, the larger the annual profits. 100,000 mile tires will
be, of necessity, original equipment (OE) tires and, except for defective or
damaged 100,000 mile tires and to replace short lived tires already in use,
there will eventually be little or no need for a replacement tire market.
100,000 mile tires have little appeal when viewed from this viewpoint, the
current viewpoint of the tire dealer.
Price research has indicated that tire manufacturers now make substantial
profits (6 or 7 percent) on replacement tires with little or no profit (1 or
2 percent, sometimes even losses) taken on original equipment sales. The ap-
parent strategy of this approach is to build up the company name and image in
the original equipment market so as to promote replacement tire sales and an
increasing market share of the replacement market. Consequently, manufact-
urers would have to sell 100,000 mile tires to automobile manufacturers at
higher prices than those of current practice. Can tire manufacturers con-
vince automobile manufacturers to buy 100,000 mile tires? Can they take, with
this product, reasonable recurrent profits? Can enough profit be obtained so
as to maintain the current value of the industry? And what of the job changes
and losses associated with the lost market volume? What will be the effects
on employment levels and the national economy? Conventional economic theory
132
-------
as well as political insight indicates that responses to these questions
should be negative. Tire dealers and manufacturers have not produced 100,000
mile tires because it seems, to them, a matter of survival. This is a quite
different reason, however, than the usually assumed non-availability of tech-
nology to do the job.
He would respond to these questions facing the tire and auto industries
positively: Consumers will buy 100,000 mile tires and therefore automobile
manufacturers will purchase them for original equipment. We indicate below
how the tire industry can actually make greater total profits per year with
100,000 mile tires. According to conventional economic theory then, there
should be an improvement in the national economy with a greater Gross Nation-
al Product as 100,000 mile tires become standard.
The last hard question relates to employment levels. With 100,000 mile
tires, fewer manufacturing, transportation, and sales employees will be need-
ed. With the TTW tire, for example, we would produce, in 1975, for example,
thirty-five million 100,000 mile tires for original equipment. We would pro-
duce, in addition, the 138 million conventional replacement tires or 138
million 75,000 mile tires, or 138 million of some other design service life
tire. The effects of the 100,000 mile tire should be felt that year in a
positive fashion as more workers should be needed to produce the same num-
ber of tires as would ordinarily be required, but to produce tires of higher
service life quality with more materials and some increased labor. The next
few years should be of similarly high employment. After, perhaps, four years,
however, the demand for replacement tires will begin to decline; tires that
ordinarily would require replacement that year will not require replacement.
The replacement tire market will continue to decline in volume over the years,
the only growth influence being attributable to population and car sales
growth. Some persons employed by the tire industry during this time would,
of necessity, have to change to other jobs or products. Tire salesmen might
have to focus upon auto accessories. Tire dealers might have to focus more
upon auto and tire service.
These changes are not unusual in the tire industry. Since the 1960s
choices of reinforcing fabrics, wire, and glasses, used in tires, as well as
materials used in elastomer compounding, have shifted the fortunes of company
after company. The recent shift toward increasing use of 38,000 mile steel
belted radial tires has placed into effect, as a profit oriented business
decision, the exact effects which we forecast for the 100,000 mile tire:
/Although it is difficult to discern in the total figures of Table E-2, long
life radial sales are booming in their initial years. Tire dealers are
shifting more toward being automobile service centers. The 100,000 mile
tire proposal promises more of the same.
The notion that the effects of 100,000 mile radial tires would be felt
gradually over time^ is demonstrated in Tables E-3 and E-4, the results of a
simulation of car and tire production and solid wastes (31). The results of
a hypothetical Federal Policy requiring that, all new cars sold in 1978 and
thereafter be equipped with lifetime, 100,000 mile, tires," were as follows:
133
-------
TABLE E-3. SIMULATED WASTE TIRES AND NEW REPLACEMENT TIRE SALES IN 100,000's:
1960 THROUGH 1990
Year
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978*
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
New cars
produced
63
65
67
69
71
74
76
78
80
82
85
87
89
91
93
96
98
100
102
104
107
109
111
113
115
118
120
122
124
126
129
Waste
model
(1)
1170
1280
1230
1260
1410
1455
1530
1535
1670
1655
1770
1760
1890
1890
1920
2060
2000
2115
2070
2205
2010
2245
2030
2165
2130
2340
2215
2370
2305
2590
2460
tires
run
(2;
1170
1280
1230
1260
1410
1455
1530
1535
1670
1655
1770
1760
1890
1890
1920
2060
2000
2115
2070
2205
2030
2060
1700
1535
1320
1290
1090
1045
1100
1090
1035
Repl . tire sales
model run
0) C2)
990
1025
1020
1095
1170
1200
1265
1280
1380
1345
1450
1435
1545
1595
1565
1685
1610
1730
1670
1860
1645
1785
1575
1735
1645
1865
1745
1930
1755
2005
1890
990
1025
1020
1095
1170
1200
1265
1280
1380
1345
1450
1435
1545
1595
1565
1685
1610
1730
1670
1860
1645
1595
1245
1095
86U
825
645
585
570
505
470
Junked
cars
36
51
42
33
48
51
53
51
58
62
64
65
69
59
71
75
78
77
80
69
77
93
91
88
92
93
89
92
106
117
113
* Model Run 2 implements the policy of all 100,000 mile tires on original
equipment cars, and 27,0(JO mile retreaded tires for replacements, beginning
in 1978. These figures were taken for a single computer run; they suffice
for a rough indication. Follow up research should sample from this model
to obtain average results.
134
-------
(1) No effects were felt on replacement tire sales for two years; actually,
as above, more workers and labor would be involved, increased employment
and GNP, to produce this expected number of tires.
(2) Beginning in 1981, replacement tire sales begin to diminish at an average
rate of 11,750,000 per year, to a level ot around 47,000,000 tires per
year in 1990; these sales should continue to decrease as the needs for
replacements drop to near zero eventually and used and retreaded tires
could fill these needs.
(3) New cars produced increase from 10,200,000 in 1978 to 12,900,000 in 1990.
New OE tire sales increase by about 1,000,000 tires per year.
The important points that we would make are that the replacement tire
market still exists after ten years, and that it has been decreasing over
time at a rate of 11,750,000 tires per year. There is no elimination of the
replacement market all at once as some would fear. Meanwhile the new passen-
ger tire market is increasing by one million tires per year.
The 100,000 mile tires being produced will require, in addition, more
labor and materials, and higher per tire employment levels than current
tires. If the increase in labor and materials is linear, then there will be
no employment decreases whatsoever with 100,000 mile tires; all of the labor
and materials that went into replacement tire production would be merely
shifted to OE tire production. This is not the case however--it is much
cheaper to produce and sell one 100,000 mile tire ($30) than it is to pro-
duce four current steel belted radial tires ($80). 300,000 persons are em-
ployed by tire manufacturers and dealers. If 100,000 mile tires are used as
original equipment, then 5/8 of these, 187,500 persons, might be expected to
be affected during a, perhaps, fifteen year period. This amounts to about
12,500 persons per year whose employment will be affected. These persons
will include tire builders and other manufacturing personnel, tire dealers,
and tire salesmen. If these are split evenly between production and sales,
then 6250 persons per year in each category can be expected to be affected.
Retreaders, reclaimers, and tire splitters should still have an adequate
number of worn carcasses to work with as well as adequate markets.
Some of the 6250 persons per year may be able to continue employment in
the same job due to increased demand for new cars. Others may have to rind
new employment. Perhaps the necessary employment shifts can be managed by
tire manufacturers and dealers so that affected employees have years of
notice, have retraining, and are given placement services by their firms.
None of this needs to affect the gross value of the tire industry; this
is demonstrated in the following section. Tire prices can be established so
that gross profits from one 100,000 mile tire can be greater than or equal to
gross profits from four 25,000 mile tires. This can actually be accomplished
with the tire consumer receiving tire services for less cost per year.
135
-------
TABLE E-4. ESTIMATED PASSENGER TIRE SALES DATA 1981 - 1990
Sales data in
Year
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
(1)
Exp.
OE
sales
545
555
565
575
590
600
610
620
630
645
12)
Exp.
rep.
sales
1785
1575
1735
1645
1865
1745
1930
1775
2005
1890
(3)
Exp.
total
sales
2330
2130
2300
2220
2455
2345
2540
2375
2635
2535
(4)
Actual
rep.
sales
1595
1245
1095
860
825
645
585
570
505
470
(5)
Exp-act
rep. sale
decrease
190
330
640
785
1040
1100
1345
1185
1500
1420
(6)
Act rep
decrease
from prev
year
50
350
150
235
35
180
60
15
65
35
100,000's
(7)
OE
increase
over prev
year
10
10
10
10
15
10
10
10
10
15
(8)
Net an
dec
6-7
40
340
140
225
25
170
50
5
55
25
(9)
Net tot
dec
6-7
180
320
630
775
1030
1090
1335
1175
1490
1410
''NOTE: This is Actual Replacement Sales geven the requirement that all OE
tires be 100,000 mile tires.
We examine next the costs, prices, and profits of 100,000 mile tires.
COSTS, PRICES, AND PROFITS: 1976 STEEL BELTED RADIAL TIRES
100,000 mile tires will, obviously, cost more than current passenger
tires. The TTW Design is based upon the steel belted radial carcass and its
estimated costs may be determined in relation to current steel belted radial
tires; to the basic cost of a current steel belted radial, we can add the in-
creased costs for labor and materials—as well as a reallocation of overhead
costs. Estimates of current manufacturing costs provide the basis for our
estimates of 100,000 mile tire production cost.
Steel belted radial tire manufacture is relatively new in the United
States; there are two basic methods of steel belted radial tire manufacture:
these are the conventional, "Single Stage" method, and a, special for steel
belted radials, "Two Stage" method. The Two Stage method requires an extra
machine {the second stage) for tire building; the second machine expands the
green tire to its torroidal shape so that the relatively inflexible belts may
be added. In the One Stage method more flexible belts are added prior to
expansion to final shape.
We estimate that steel belted radial tires, in 1976 production, ex-
hibited the following cost and price relationships:
136
-------
TABLE E-5. COSTS AND PRICES OF STEEL BELTED RADIAL PASSENGER TIRES
Two-stage One-stage
steel belted steel belted
Manufacturers' prices*
OE auto cost of a tire ^-^ 2?-64 33.17 17.69 22.12 27.06
REP dealer cost of a tire 22-91 28-64 34-39 18-32 22-91 27-51
Retail tire dealer sales price& 39-20 65-50 89-60 39-20 65-50 89-60
Gross profit: dealers* 15-29 36-86 55-21 20-88 42-59 62-09
Tire dealer expenses* 15-31 34'64 51-89 19-62 40-03 58-36
Net (BT) profit: dealers^ -98 2-22 3-32 1-25 2-56 3-73
* Manufacturers' costs were calculated based upon a range of belted bias
costs of $12 to $18; we used three discrete levels: $12, $15, and $18.
To this we added 25% for the two stage process; nothing was added for the
single stage process; this represented a 25% and 0% incremental cost for
radial tire production over bias belted. Next a 40% increase in costs over
the calculated radial tire cost was figured in; this increase represents
the oil and associated price increases of 1974 to 1976. The labor price
increase of late 1976 was next figured in at 12% times -the labor portion
of tire costs .275. Then 2% OE manufacturers profits and 6% replacement
tire manufacturers profits were added. References are (1) Westerman,
pp 176-179; (2) Cox, NTDRA Marketing Guidelines, 1977, p 11; (3) Cone,
et al, p 75; and (4) Modern Tire Dealer, 1977, January, p 72.
& Reference Cox, NTDRA Marketing Guidelines 197/, p 11; these are actual
prices for the first six months of 1976, with 12% added to reflect the
settlement of the labor dispute of 1976--Modern Tire Dealer, January 1977,
p 72.
i Profits on original equipment were not calculated. This gross profit
represents retail price minus replacement tire cost; this assumes that
low cost tires are sold at lower prices.
# Expenses were calculated at .94 of gross profit; reference Cox, NTDRA
Financial Analysis Study 1977, p 2, Table 2.
@ This before tax profit was calculated as gross profits minus expenses.
Taxes would be .25 or .48 percent of this, depending on the size of
profits.
The cost figures given for the one stage process are probably better
estimates of radial tire manufacturing costs:
137
-------
"Radials sell for up to 50% more than other tires, yet cost
little more to manufacture, especially now that Akron's "learn-
ing experience" is largely completed and radial volume is moving
into mass production figures." (32)
A breakdown of total passenger tire costs was developed by Cooper (33):
TABLE E-6. PERCENT OF PER TIRE MANUFACTURING COSTS, BY CATEGORY
Bias belted Radial Radial
Cost category glass/textile textile/textile steel/textile
Investment
Labor
Materials
Total
9
39
52
100
8
45
47
100
10
45
45
100
_._
In 1976 another cost breakdown for steel belted radials was reported:
(1) Labor 10%; (2) Materials 50%; and (3) Other 40%; profit was not included
in this estimate (34).
This discrepancy in reported data (10% labor versus 45% labor for steel
belted radial tires) is probably based upon accounting practice; the later
estimate reflects the recent investment in radial tire production equipment
in its high depreciation years and consequently the "Other" category includ-
ing depreciation expense is relatively high, 40%. Cooper's figures, on the
other hand, probably reflect little depreciation expense and, perhaps, could
more fairly be called "overhead". Cooper's sources may not have realized the
affect of decreased production quantities on overhead; fewer tires per year
are needed with radials. We used the average of the two reports as our est-
imate. We felt that this was a more accurate representation of the long run
proportions.
TABLE E-7. SBR PER TIRE PRODUCTION COSTS BY CATEGORY
Cost category Percent of
total costs
Overhead, S0 25.0
Labor, SL 27.5
Material, Sm 47.5
Total 100.0
We estimate next the additional materials, labor, and overhead needed
for a 100,000 mile tire.
138
-------
100,000 MILE TTW TIRES: INCREMENTAL MATERIALS NEEDS (H ')
v m'
If the incremental material needs for a 100,000 mile tire were in pro-
portion to the mileage obtained, then 2.5 times the materials of a current
steel belted radial tire, an increment of 1.5 times the materials, would be
required:
M6 100000
M= 40000 = 2'5
Where Mg = the mileage obtained, on the average under normal use, from
100,000 mile tires.
MI = the mileage obtained, on the average under normal use, from
current steel belted radial tires.
We have indicated, however, that the carcass of an existing steel
belted radial passenger tire is adequate for 100,000 miles (160,900 kilo-
meters) of life, and that only 4.5 thirty-secondths of an inch (.36 cm) over
the usual 13.1 thirty-secondths of an inch (1.04 cm) of tread rubber thick-
ness will be needed. The additional tread rubber needed represents an
increment, not of 150%, but of only 35%. Tread rubber constitutes perhaps
fifteen percent of the tire materials by volume. Accordingly we multiplied
the increase in depth (.35) times the proportion (.15) to determine the in-
creased materials proportion; the result is a five percent increase due to
tread rubber thickness:
Increased Tread Rubber Needs = Dt (Dn) = .15 (.35) = .05
Where: Dt = a decimal fraction; the fraction, by volume, that tread
rubber constitutes of a tires materials
D^ = the decimal fraction increase in tread rubber depth needed
for 100,000 miles of tire service life as opposed to
40,000 miles
This tread rubber would be truck tread rubber in lieu of passenger tread
rubber. We represented the truck tread rubber as rubber comprised of a high-
er grade of carbon black than is currently normal. The higher quality carbon
black costs more, we assumed a twenty-five percent increase, than that
currently used for passenger tires, but requires less black and less oil ex-
tender; the amount effect is a cost savings of about eleven percent. (34)
If these figures are reasonable, then the net effect would be a fourteen
percent increment in the cost of tread rubber .
Net Increase In Materials
Due To Quality
_ _ „_ , , , ,
= D ~ Dd = -25 - -11 = -14
139
-------
Where:
D = a decimal fraction representing the increase in the cost of high
4 quality carbon black over conventional carbon black
D, = a decimal fraction decrease in the cost of carbon black with higher
quality, due to the need for smaller amounts
The additional materials which we would need to account for the wideness
of the tire might be represented as a three inch (7.62 cm.) increase in width
on a 75.15 tire, a thirty-five percent increase in the parts of the tire
beneath the tread, and including the tread. This portion of the tire com-
prises about forty percent of the surface area of the tire, and includes car-
cass, belts, non-skid, and tread rubber. We multiplied the increase in width
(.35) times the relevant proportion of the tire (.4) to determine an approx-
imation to the increased materials needed due to width. K'e added .12 to this
result to represent the factor of .35 increase in tread rubber depth needed
on the widened section of tire. Twenty-six percent additional materials are
needed for the ultra-wide tire.
Materials Needed Due To
Increased Width
uw
(Du) + Dw (On) = .35 (.4) + .35 (.35) = .26
Where:
the decimal fraction increase in tread rubber depth needed for 100,000
miles of tire service life as opposed to 40,000 miles
the proportion of a tires surface area which is covered by tread rubber
the decimal fraction representing the increased width needed for a
TTW 100,000 mile tire
We summed the three effects discussed above to determine a surrogate
measure of the increased materials needed for a TTW 100,000 mile tire.
Hm = the increase in rubber thickness plus
the increase in materials due to tread quality plus
the increase in materials due to the width of the TTW tire
= .05 + .14 + .26
= .45
100,000 MILE TIRES: INCREASED LABOR NEEDS (HL)
A diagram of the tire manufacturing process is given in Kovacs (35).
Labor costs to produce a TTW tire could increase in direct proportion
to the additional materials used; certainly TTW tires would require that a
greater number of pounds of rubber and materials be processed: (1) through
tire cord weaving dip and calendering units; and (2) through Banbury, milling,
and extruding machines. The tire vulcanizing process will take longer due to
the increased thickness of tread rubber used. We estimated that labor costs
associated with these components of the tire manufacturing would increase
140
-------
forty-five percent, in accordance with H , for 100,000 mile tires.
The time requirements of cutting, bead coating-winding-and building,
tire assembly, and final inspection (452 of the operations) would not in-
crease significantly, however; a tire builder, for example, still has the
same number of pieces to assemble with a TTW tire as he does for a conven-
tional tire. Tire Builders are the most skilled of the tire labor force;
they are on a relatively high wage scale. The labor costs, per tire, of the
tire builder, cutting, bead, and inspection components would then, not in-
crease for a 100,000 mile tire.
Based upon this analysis we used a figure of twenty-five percent as an
estimate of increased labor costs for the TTW tire. H, = ,2b
OVERHEAD COSTS: 100,000 MILE TIRES (HQ)
It would seem that overhead costs per tire, the "burden", would increase
dramatically with the decreased production throughput volume implied by
100,000 mile tires; the fixed costs of production must be allocated tor ac-
counting purposes, over a smaller volume of tires. To determine the correct-
ness of this idea we examine, "What is overhead?".
Overhead expenses include:
1. Repair labor and materials
Z. Energy costs
3. Water and waste processing costs
4. Depreciation on equipment
5. Property taxes
6. Insurance
7. Salaries and wages of non direct production personnel
8. Research
9. Other.
There is no reason to assume that a tire manufacturer would maintain the
system of overhead associated activities if he decreased his production vol-
ume. Most of the expenses would be decreased. Obviously, the energy re-
quirements would be smaller with a smaller production volume; water and waste
processing requirements would be similarly smaller. Some plant and equipment
would undoubtedly be sold off and this would decrease depreciation, property
taxes, repair labor and materials, and insurance costs. A smaller non direct
work force would be needed to manage the production. Research might remain
at the same level. It seems, then, that a smaller quantity of overhead costs
remains to be allocated over the smaller quantity of 100,000 mile tires. It
is not inconceivable that overhead costs increase, but by a small amount.
Further, the 100,000 mile tire alternative clearly recognizes that,
eventually, a large percent of the replacement tire market will be elimin-
ated or transformed to provide other goods and services. The firms that
remain to produce the 100,000 mile tires will have the same overhead costs
per tire as before provided that they operate at the same production volume.
For these firms the overhead costs per tire will remain about the same as for
141
-------
conventional tires or, at most, will have an increase proportional to the in-
creased material usage. Some of the overhead categories—depreciation, taxes,
and insurance—would not increase if excess capacity already existed for the
manufacturers. Excess capacity does exist for most tire manufacturing equip-
ment—at least tor the more expensive eouipment such as the Calender and
Banbury machines. Consequently a figure representing less than the forty-
five percent increase in overhead would be justified.
We used a figure of H0 = .40 to represent this increase for those firms
that would remain in the industry to produce the 100,000 mile tires.
PRODUCTION COSTS: 100,000 TTW TIRES
The TTW 100,000 mile tire is essentially a current steel belted radial
tire with increased width and tread depth; in addition it uses top quality
(truck) tread rubber. To calculate its cost we combined the cost components,
studied above, as follows:
H = Cr + CrSrnHm + CrSi_HL + CrS0H0
= Cr(l+ SmHm + SLHL + S0H0)
Where:
H = the production cost for a TTW 100,1)00 mile tire.
Cr = the cost of producing a current steel belted radial passenger car
tire, excluding manufacturers profit.
Sm = the decimal fraction of a steel belted radial tire's production
costs attributable to materials, only.
H = a number representing the additional amount of materials needed to
obtain 100,000 miles.
S^ = the decimal fraction of a steel belted radial tire's production cost
attributable to labor, only.
HL = a number representing the additional labor needed to produce a
100,000 mile tire.
SQ = the decimal fraction of a steel belted radial tire's production costs
attributable to "overhead".
H = a number representing the additional overhead which must be allocated
to a 100,000 mile tire.
This Equation says:
H = Cost of a current steel belted radial tire plus
the additional materials costs plus
the additional labor costs plus
the additional allocation for overhead expenses.
The cost of a current single stage steel belted radial tire, with manu-
facturers' profits included, from Table E-5 is $22.12. Cr, excluding manu-
facturers' profits, is 521.68. The data for Sm, Si, and S0 is given in Table
E-7. The additional materials proportions (Hm = .45), Labor (H[_ = .25), and
142
-------
overhead (\\Q = .40) needed for TTW 100,000 mile tires, were developed in the
previous sections. Our estimated cost for a 100,000 mile TTW tire is,
accordingly:
H = 21.68 (1 + (.475K.45) + (.275)(.25) + (.250)(.40)
= 21.68 (1.38) = $29.92
A 100,000 mile TTW tire will cost about thirty dollars, excluding
manufacturer's profits, to produce. An equally important question is, "At
what price would these tires sell?"
SALES PRICES: 100,000 MILE TIRES
Tire sellers have the option of selling 40,000 mile steel belted radial
tires that last four years (at 10,000 miles per year), or TTW 100,000 mile
tires that last ten years. This situation may be formulated as a present
value problem to determine a reasonable selling price for 100,000 mile tires.
TABLE E-8. GROSS PROFITS OF FIVE 40,000 MILE TIRES
Beginning PV factors
of year 10% 20%
1.0
5.0
9.0
13.0
17.0
1.000
.633
.467
.319
.218
1.000
.482
.233
.112
.054
Steel radial
gross profits
542.59
$42.59
$42.59
$42.59
$42.59
Present value of gross profits
10% 20%
$42.59
5.29.09
$19.89
$13.59
$ 9.28
$42.59
$20.53
5 9.92
$ 4.77
$ 2.30
Totals $212.95
$114.44
$80.11
The present values of the gross profits from five 40,000 mile tire sales
are $114.44 discounted at ten percent and $80.11 discounted at twenty percent.
These values may be used to determine a price for the 100,000 mile tire.
Two 100,000 mile tires are equivalent to five current 40,000 mile steel belt-
ed radial tires. Based upon this we calculated the gross profits from two
100,000 mile tire sales for the ten and twenty percent discount rates:
Gn: 10% calculation
Gn + .424Gh = 114.44
G = 114.44/1/424 = $ 80.36
Gh: 20% calculation
Gh + .162Gh = 80.11
Gh = 80.11/1.162 = $ 68.94
143
-------
5.94 to $80.36 gross profits per 100,000 mile tire will be necessary,
from the tire industry's viewpoint, if the 100,000 mile tire is to be profit-
able as compared to current steel belted radial tires.
If we add the $30 production cost to this gross profit value we obtain
an estimate of a price for 100,000 mile tires which should be very reasonable
from the tire industry's viewpoint. This price is $ 98.94 to $110.36. About
$100 would be a reasonable price for a 100,000 mile tire.
In current dollar figures, if tire sellers were to sell 47.5 million
100,000 mile tires per year at a price of about $100 each, they would make
more gross profit than if they were to sell 150 million 40,000 mile tires
per year at a price of $65.50. In general, it is better to sell fewer high
quality tires at higher prices than to sell larger quantities of lower
quality tires at lower prices.
100,000 MILE TIRES AND THE CONSUMER
Consumers may also be the beneficiaries of a 100,000 mile tire. At
current steel belted radial tire prices consumers may be expected to pay
$65.50 per tire every four years. In twenty years this totals $327.50 per
axle on a car; the present value of this amount at a discount rate of ten
percent is $190.27. Tire sellers can sell 100,000 mile tires at $100 each,
one now and one at the beginning of year eleven, to the consumer. The
present value of these two sales is $142.40. The consumer can save $47.87
per axle each twenty years. Obviously, both the consumer and the tire
seller can get more for less with 100,000 mile tires.
FUEL CONSUMPTION: 100,000 MILE TIRES
TTW 100,000 mile tires use about forty percent more materials than do
current steel belted radial tires; a TTW tire, then, may be represented as
being forty percent heavier than a current 40,000 mile tire. If a current
tire weighs 30 pounds (13.6 Kg.) when new, then TTW tires would weigh 42
pounds (19.1 Kg.) each. This represents an increase in weight of twelve
pounds (5.4 Kg.) per tire. This increased wieght has an effect on the gas-
oline mileage obtained from an automobile and this effect might be repre-
sented as a cost of 100,000 mile tires in our analyses. We examine the
cost of increased fuel consumption below.
We estimated the change in fuel consumption which would be associated
with a twelve pound (5.4 Kg.) increase in the weight of a TTW tire, a 5000
pound (2268 Kg.) tutomobile consumes about 100 percent more fuel than does a
2500 (1134 Kg.) automobile. Over the ten year life of his vehicle the owner
usually spends nearly sixty percent of the price of the car on gasoline. For
a $5000 automobile, $3000 would be spent on gasoline in ten years and this
represents $1200 during the four year life of a current tire. An increase
in weight of twelve pounds (5.4 Kg.) on a 3750 pound (1701 Kg.) car repre-
sents a .3 percent increase in weight. If the relationship between fuel
consumption and vehicle weight is direct such that a .002 percent increase
in weight results in a .3 percent increase in fuel consumption, then an
additional cost of $3.84 per 100,000 mile tire per four years would be
144
-------
incurred. Four 100,000 mile tires would add $15.36 to consumer fuel costs
each four years. This cost is significant, yet it is significantly less than
the $22.70 consumer savings (Table 3) obtainable in the cost of tire services.
And there is substantial possibility that 100,000 mile tires could be sold at
even less than the $107 price used to represent 100,000 mile tires in the
Tires II analysis. For example, if a tire manufacturer were satisfied with
a $90 price per tire representing a markup, from the $30 production cost, of
200 percent, consumers could obtain tire cost benefits much greater than the
$22.70 found in this research.
The LHP 100,000 mile tire need not have any increased fuel consumption
as compared to current tires; the effect of higher operating pressures is to
increase gas mileage. The operating pressure of TTW tires could be slightly
increased to offset any increase in gasoline consumption which would occur
because of increased weight. DTR 100,000 mile tires, when developed, will
have no increase in weight. The efficiency of fuel use for 100,000 mile
tires, then, can be the same as for current tires.
SUMMARY
100,000 mile tires are technically feasible to produce and are market-
able. They can offer increased profits for tire sellers and decreased costs
for tire services to consumers. 100,000 mile tires will provide additional
benefits in the areas of safety, conservation, and solid waste management.
145
-------
GLOSSARY OF SYMBOLS AND DEFINITIONS
A = the proportion of a 40,000 mile tire's manufactured value
(manufacturer's selling price) that a solid waste tire
retains
Ajj = the area, in square yards, of a Phoenix, Arixona, city
block 560 feet by 60 feet
Ca = the costs of grading a worn tire for possible reuse
Cjj = the batch collection costs per worn tire
Cc - the haul costs per solid waste tire
Cj = the costs of grinding a solid waste tire
Ce = the costs of chopping up (shredding) a solid waste tire
Cf = the average cost of a % inch asphalt concrete finishing
coat (ACFC) in conventional road repairs
Cg = the cost of processing a solid waste tire by Cryogenics
Cj, = handling costs per solid waste or worn tire
G.J = a cost index which indicates the decimal fraction inc-
reased cost that radial tires incur as compared to belted
bias tires
Cj_ = landfill costs per solid waste tire
Cn = the production cost for a belted bias tire, including
P
manufacturer's profit; the average price to wholesalers
C = the average store rental cost for a tire dealer
Cs = the average cost of one inch of asphalt concrete in road
repairs
C = the present value of road repairs avoided each ten years
with the tire asphalt rubber repair process
Ctra= tire asphalt rubber costs for repairs to a 560' X 60'
city block
C. = the cost of retreading a tire; production processing cost
Cu = the haul cost per solid waste tire
DC = the pounds of carbon obtainable from one solid waste tire
146
-------
using the TOSCO, pyrolysis/destructive distillation,
process
Dj = a decimal fraction decrease in the cost of carbon black
with higher quality, due to smaller amounts needed
Dh = the decimal fraction increase in tread rubber depth needed
for 100,000 miles of tire service life as opposed to
40,000 miles
D. = the decimal fraction solid waste decrease per tire for
the service life design which is used with alternative "i"
DQ = the barrels of recovered oil obtainable from one solid
waste tire using the Tosco destructive distillation
process
D = a decimal fraction representing the increase in the cost
of high quality carbon black over conventional carbon
black
Ds = the tons of scrap steel obtainable from one solid waste
tire using the Tosco destructive distillation process
Dt = a decimal fraction that indicates the part, by volume,
that tread rubber constitutes of a tire's materials
Du = the proportion of a tire's surface area which is covered
by tread rubber
Dw = a decimal fraction representing the increased width
needed for a TTW 100,000 mile tire
E = the costs of maintaining environmental quality; landfill
costs are used as a surrogate in this work
EXAV = the average selling expenses for a 40,000 mile steel
belted radial tire
EXL = a low estimate of selling expenses for a 40,000 mile steel
belted radial tire
F* = a tire dealer's gross profit rate on selling price for
40,000 mile steel belted radial tires
F5 = a tire dealer's gross profit rate on the selling price
of a 40,000 mile retreaded tire
Fc = a tire dealers gross profit rate on the selling price
of a 100,000 mile tire
6 = the application rate for tire asphalt rubber, in gallons
per square yard of road repaired
G. = the gross profits obtained on the sale of a 100,000 mile
n tire
H = the average production cost for a 100,000 mile TTW tire
HL = a decimal fraction representing the increased labor
needed to produce a 100,000 mile tire
Hm = a decimal fraction representing the increased materials
needed in producing a 100,000 mile tire
Ij = an interest/discounting rate decimal fraction for
business investments
Ig = an interst/discounting rate decimal fraction for
governmental funds
K^ = a decimal fraction representing high administrative and
marketing costs as compared to production costs
147
-------
K = a decimal fraction of sales price factor representing
h administrative and marketing costs for 100,000 mile tires
Ki = a decimal fraction of production costs factor used to
represent low administrative and marketing costs
Kr = a decimal fraction of production costs factor used to
represent administrative and marketing costs of retreading
M* = average mileage service life ofr a steel belted radial
tire in the United States in 1975: 40,000 miles
M5 = average total mileage service life for belted (steel)
radial tires with one retreading; including both original
and retreaded life
M6 = average mileage service life for tires designed to last,
the average life of an automobile: 100,000 miles
N = the proportion of a solid waste tire that it takes to
obtain one pound of tire asphalt rubber additive
N = the number of tires in a landfill six feet deep measured
at one cubic foot per tire
Nb = the number of whole tires used in one city block of tire
asphalt rubber road repairs
Ns = the number of whole tires used in one square yard of tire
asphalt rubber road repairs
0 = the opportunity cost, to tire manufacturers, of increas-
ing retreading by one tire
0|_ = the decimal fraction of resource recovery products value
attributable to labor
P = the weight, in pounds per gallon, of tire asphalt rubber
Pa = the price per acre of land reclaimed by fill with shred-
ded tires
Pjj = the average retail price of a belted bias tire
P_ = the selling price per pound for recovered carbon
v
Pq = the selling price for a bag of crumb rubber reprocessed
by Cryogenics
Ph = the average retail selling price for a 100,000 mile tire
P* = the average retail selling price of a 40,000 mile tire
Pj = the corporate profits for alternative "i"
PO = the selling price for a barrel of recovered oil from
sol id waste tires
P» = the retail selling price of a retreaded 40,000 mile
radial tire
P = the selling price, per ton, for scrap steel
Pt = the price per ton of coal
R = the average production cost for a 40,000 mile steel
belted radial tire
148
-------
R = the cost of conventional repairs to a city block which
c is 5604 by 60'
RL = the mileage of cracked roads repaired temporarily each
year in the United States (as opposed to rebuilt,
permanently repaired, roads)
Rp = the proportion of a worn tire that is rubber
Rr = the cost, per square yard, for materials and application
of tire asphalt rubber
RW = the average width of a U.S. road
S^ = the present value of the interest earnable on the road
repair costs avoided by the asphalt rubber process, meas-
ured over a ten year period
S|_ = the proportion fo a tire manufacturer's average selling
price, per tire, allocable to labor costs
Sm = the decimal fraction proportion that materials comprise
of a manufacturer's selling price per tire
S0 = the decimal fraction proportion of a tire manufacturer's
average selling price allocable to overhead costs
Sp = the average proportion of a tire dealer's physical space
used for storage of worn tire casings
Sr = the decimal fraction of a retreaded tires price attrib-
utable to labor
T = the corporate profits tax rate
Tw = the number of solid waste tires which may, potentially,
be used in tire asphalt rubber road repairs each year
in the United States
U = the average number of miles driven per car per year
Uc = the heat value in British Thermal Units (BTU) obtainable
from a pound of coal
Ur = the heat value in British Thermal Units (BTU) obtainable
from one pound of worn tire rubber
V = the average inventory of worn tire casings held by a
tire dealer
W^-j = the waste decrease per tire per year as compared to
40,000 mile tires
Wp = the proportion, by weight, of tire asphalt rubber, which
is worn tire rubber
Wj. = the average weight, in pounds, of a solid waste tire
Wwl- = the decimal fraction of solid waste tires per unit time
that remain with any of the solid waste decreasing
alternatives
Y* = the years of service life of a 40,000 mile steel belted
radial tire, the reference tire system
Yi = the number of years of service life obtainable from the
tire design associated with alternative "i"
149
-------
Yc = the total service life of a retreaded steel belted radial
tire including original life plus retreaded life
Y6 * the service life of a 100,000 mile tire
150
-------
TECHNICAL REPORT DATA
(Please read Instructions on the reverse before completing)
EPA-6QO/5-78-009
TITLE AND SUBTITLE
TIRES: DECREASING SOLID WASTES AND
MANUFACTURING THROUGHPUT
Markets, Profits, and Resource Recovery
5. REPORT DATE
July 1978 (Issuing Date)
6. PERFORMING ORGANIZATION CODE
I. RECIPIENT'S ACCESSION NO.
AUTHOR(S)
Robert R. Westerman
8. PERFORMING ORGANIZATION REPORT NO.
PERFORMING ORGANIZATION NAME AND ADDRESS
Department of Management
School of Business and Public Administration
California State University Sacramento
Sacramento, California 95819
10. PROGRAM ELEMENT NO.
1DC618
11. CONTRACT/GRANT NO.
Contract #68-03-2401
2. SPONSORING AGENCY NAME AND ADDRESS
Municipal Environmental Research Laboratory—Cin.,OH
Office of Research and Development
U.S. Environmental Protection Agency
Cincinnati, Ohio 45268
13. TYPE OF REPORT AND PERIOD COVERED
Final 4-76 to 8-77
14. SPONSORING AGENCY CODE
EPA/600/14
5. SUPPLEMENTARY NOTES
Haynes C. Goddard, Project Officer 513/684-7881
16. ABSTRACT
This report studies the economic and social costs and benefits of a passenger car
tire design service life of 100,000 miles (160,900 kilometers), retreading, and"four
resource recovery methods for solid waste tires: (1) cryogenics with recovered rubber
use, mixed with asphalt, in repairing roads; (2) incineration of whole tires; (3) py-
rolysis; and (4) landfill. Symbolic models of tire costs and benefits are presented
along with a computer program for their calculation. A shift in new tire design service
life is recommended, along with increased retreading and with solid waste tire process-
ing by cryogenics for use as tire asphalt rubber in repairing roads. Three methods of
producing 100,000 mile tires are proposed; one, the TTW 100,000 mile tire, is discussed
in some detail.
17.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
Tires
Automobile Tires
Economic Analysis
Benefit Cost Analysis
b.IDENTIFIERS/OPEN ENDED TERMS
Waste Tires
COSATI l-iL-UI/(iroup
05C
18. DISTRIBUTION STATEMENT
Unlimited
19. SECURITY CLASS (This Report!
Unclassified
21. NO. OF PAGES
161
20. SECURITY CLASS (This page)
Unclassified
22. PRICE
EPA Form 2220-1 (Rev. 4-77)
151
a 1 S COYIRMKICl P»MH"C OffICt 15'8- ' " '
-------
U.S. ENVIRONMENTAL PROTECTION AGENCY
Office of Research and Development
Environmental Research Information Center
Cincinnati, Ohio 45268
OFFICIAL BUSINESS
PENALTY FOR PRIVATE USE. S3OO
AN EQUAL OPPORTUNITY EMPLOYER
POSTAGE AND FEES PAID
U S ENVIRONMENTAL PROTECTION AGENCY
EPA-335
Special Fourth-C lass Rate
Book
if your address is incorrect, please change on the abovi- lube/
tear off, and return to the above address.
If you do not desire to continue receiving these technical
reports, CHECK HERE CH, tear off label, and return it to the
above address,
EPA-600/' i09
------- |