Environmental Economics of Cement Distribution: Impact of Geographic Variables on its Pricing and Marketing Structure in Rivers State

Abstract

The environment is a natural capital that supports all forms of business transactions and is a decisive factor in the economics of the construction Industry. Cement is a vital material used for building and construction works in contemporary society. Therefore, by virtue of its importance in the building and construction industry, its pricing and marketing structure are of vital and strategic significance to the availability of all forms of housing and infrastructural development. Geographic influences on supply, demand, and consumer satisfaction is of great importance to any business organization. The study examines the economic impact of geographic variables such as distance, population, and geographical size on the price and marketing of cement in the twenty-three local government areas of Rivers state. T-test was used as an exploratory statistical tool to determine if a significant difference existed between the prices of cement for locations accessible by sea and those accessible by land. Correlation analysis was used to determine significant relationships between the variables of the study, which were subsequently expressed in a predictive model via regression analysis. Based on the findings of the study it was concluded that geographic factors are key in the environmental economics of cement pricing and profit maximization for all parties involved in the production, buying, selling, and distribution of cement.