Abstract

We present models for the design of routes for transportation of loads that might become hazardous or obnoxious to the population living along these routes. We take into consideration the fact that the values of the properties that are close to the roads used for the transportation may decrease as a consequence of this activity. As opposed to the traditional approach, of minimizing the population along the routes, we propose to include a compensation cost as a direct cost of choosing the routes. This compensation could include, for instance, a reduction in property tax rates. Two formulations are presented, covering different patterns of effects on property values. As an example of application of the models, we provide some computational experience.