Authors:
Hmayak Romikovich Nalbandyan
Tamara Genrikovna Harutyunyan
Abstract:
With the onset of industrialization in the 20th century, the problem of solid waste has become a modern and serious global problem requiring modern solutions, which science is getting closer to every year.
Purpose of the article:
Ensuring a timely solution to the problem of solid waste, for which the use of modern means is envisaged, which will clearly demonstrate not only environmental, but also financial benefits at both the public and private levels. The economic benefits of solid waste recycling include obtaining significant benefits and reducing costs for various economic entities. In this abstract we will look at how the processing of solids waste can lead to an improvement in the economic situation and the main factors influencing the achievement of these benefits.
Scientific novelty of the article
is a method for calculating additional growth GDP from solid waste sorting. The method can show what additional GDP the recycling of solid waste gives if it is implemented, which, in in turn, simplifies and reveals the possible calculation of the corresponding volume investments in collection and sorting enterprises, in which case investments will be profitable.
Initially, it is worth noting that solid waste recycling can create a separate sector of the economy that contributes to GDP growth and the creation of new jobs. Instead of simply collecting and storing waste, recycling provides the opportunity to sort and return it to production cycles. This allows you to reduce costs for the purchase and processing of raw materials, as well as waste disposal, which in turn has a positive impact on budget of an organization or state.
Another important aspect of the economic benefits of solid waste recycling is the creation of new sources of income. By recycling waste, you can obtain secondary resources that can be used in various industries, such as the production of building materials, fuel or fertilizers. This allows not only to reduce dependence on imported raw materials, but and create new opportunities for the export of such products, increasing export potential and foreign exchange earnings.
In addition, solid waste recycling may be accompanied by the introduction of new technologies and innovations, which in turn stimulates economic growth and development. This can lead to new businesses, increased production efficiency and reduced environmental impact. The introduction of new technologies can also help reduce costs energy and raw materials, which has a positive effect on the financial performance of enterprises.
Based on the above, the economic advantage of solid waste processing lies in the growth of GDP, the creation of new jobs, the reduction costs of raw materials and energy, creating new sources of income and stimulating innovative development. However, to achieve these benefits it is necessary develop an effective system for collecting, sorting and recycling waste, and also introduce appropriate technologies and conduct staff training.
Keywords :
Solid waste, GDP, collection, sorting, processing, prices, cost reduction, circular economy, coefficients
Introduction:
In many modern studies, the end of the 21st century is predicted as an ecological collapse of civilization, which is largely associated with the rapid growth of solid waste, which threatens not only individual species of flora and fauna, but also the entire nature of which humanity is a part.
One of the main solutions or at least mitigation of the problem is the recycling of solid waste, since its combustion produces harmful gases , which continue to harm the environment and in many cases cause more damage than before combustion, even in the field, creating more serious problems.
However, it is not advisable to recycle all types of solid waste; some can only be neutralized by burning, but under special conditions. There are many microcircuits, types of plastic and generally difficult-to-separate waste, which, due to economic feasibility, are processed by incineration. There are also easily recyclable wastes such as polyethylene and similar polymers, metals, paper and glass, which are now recycled in many countries. There are also more complex wastes that need to be recycled, such as used motor oil from cars, bilge water from the bottoms of ships and other oily wastes.
This type of waste requires processing, which is not carried out for various reasons, ranging from lack of sorting to lack of knowledge.
In the modern world, one of the most important incentives for the development and functioning of the economy is business interest. The purpose of this study is to assess the economic benefits of solid waste collection at the macro level, specifically to estimate how much annual GDP growth can be achieved as a result of solid waste collection.
Therefore, the task was set to study the volume of waste and estimate its share among the main types, calculate the income received and find out the annual additional increase in GDP.
Literature review. The article presents the works of foreign authors and materials of international organizations on this issue.
Methodology:
The article takes into account how much solid waste is generated as a result of economic and domestic activities, and then generally estimates how much income could be generated if that part of it that is considered recyclable were recycled. In particular, the main types of waste being processed are divided by specific gravity and, after sorting, their cost is calculated. All outcome estimates are then combined and compared to GDP to ultimately estimate how effective solid waste recycling is for GDP.
Analysis:
In recent years, due to economic growth, public awareness of solid waste management has increased, which has influenced ineffective waste management practices. Most of the waste generated is disposed of without any treatment, in open dumps and landfills, which is unsanitary and harms public health, the environment and the country's economy. This assessment summarizes the current situation and the potential economic benefits of waste management.
Plastic waste can be processed mechanically and chemically. Not all plastics can be recycled as there are technical difficulties that make this impossible. Mixed plastic compounds are not generally recycled due to separation problems and the issue is currently being studied in relation to collection and separation.
There are organizations that process solid waste at the industrial level. In particular, the following types of plastics can be recycled: PET (polyethylene terephthalate), HDPE (high density polyethylene), LDPE (low density polyethylene), PP (polypropylene), PVC (polyvinyl chloride), PS (polystyrene) and some others.
Recycled plastic is used from the production of jackets and coats to food packaging. HDPE can be recycled into tables, curbs, benches, truck racks, trash cans and a variety of other products. LDPE is used as shopping bags. Recycled PP can be used to make many different household products, such as battery boxes, scoops, buckets, flower pots, etc. PVC can be recycled into water pipes. PS can be transformed into vases and other design items. In addition, ways to add value to non-traditional recycled plastic products are being explored.
The largest paper producers in the world are Asian countries, CEPI countries and North America. This is due to the level of population and industrialization of these countries. Paper production declined in 2008 as a result of the global economic crisis, which continued into 2009. However, paper used by government agencies overwhelms the industry's share of recycled paper, which is made from virgin paper and paperboard. In 2010, the negative trend reversed and the use of recycled paper increased. On the other hand, 2009 was the fourth year of recovery in the production and use of recycled paper. The level of primary raw materials was exceeded, although we note that primary raw materials are indispensable in the production of high quality paper. Additionally, the recycled paper manufacturing process requires the use of virgin raw materials to be added to the mix (METAFORE, 2006).
The advantages of recycled metal over virgin metal are more environmentally friendly. And this is due to less use of natural resources and energy savings. Recycling saves 95% of energy in aluminum production, 85% in copper production, 74% in steel production, 60% in zinc production, and 65% in lead production (BIR, 2009).
From an economic perspective, it is energy conservation that provides the opportunity to profit from the 2011 metals market, as the metals market has grown in China, India and the Far East due to increased demand for new commercial, residential and industrial construction. In addition, metal materials are needed in the production of industrial equipment, machinery and weapons. Scrap metal helps the steel industry meet these needs not only in developing countries, but also in Western countries.
The glass recycling process is very interesting from an industrial and environmental point of view. Glass can be recycled indefinitely without loss of quality or purity (GPI, 2010). Energy costs for electricity are reduced by approximately 25%, which makes the production mixture less aggressive and lowers the melting point, which also extends the life of the production furnace. Additionally, glass recycling is a closed system that produces no additional waste (GPI, 2010). The price of glass for new glass processing plants and alternative markets under development has fallen in recent years. Thus, the domestic market for recycled glass remains generally at a high level, thanks to which the price for this material is quite stable. In many countries, this circumstance is supplemented by the dependence on the glass industry to supply the export market.
When it comes to wood processing, two types of materials should be distinguished:
- High-grade wood, which is obtained from pure white softwood lumber, tree straw, wood scraps, packing boxes and carpentry scraps. They do not contain paints or polymer coatings.
- Low-grade wood includes plywood, door and window frames, roofing lumber, panel products, etc.
Both types of materials originate from construction and demolition, commercial, industrial and domestic sources. The main market for recycled wood was the wood panel industry. This material is used in the production of laminate. However, the wood industry is seeking value-added markets and discovering new applications in bedding, garden mulch, etc., and these markets are also constantly developing. This has led to the growth of the timber industry in recent years. Demand for wood is expected to continue to rise as governments encourage renewable energy production.
The article takes into account the fact that about 469,000 tons of waste are generated annually in Armenia, of which about 15% is processed and disposed of. About 398 thousand tons of waste remained a “gift” to nature, which could be recycled and not only not harm nature, but also bring economic benefit - income. On average, about 35% of total waste is recyclable. In the case of Armenia, it turns out that out of 469,000 tons of waste, about 164,150 tons can be recycled, of which 25% is plastic, 15% is glass, 30% is paper, 15% is metal and 5% is wood: waste that, accordingly are 41,000, 24,600, 49,250, 24,600 and 8,200 tons.
Figure 1. Solid waste by type, European Union, 2021
Therefore, when we estimate losses that could be converted into income in various ways, then at least the calculation begins with the net material value, that is, by multiplying the quantity by the unit price.
Plastic – 41,000,000 kg * 10 =4.1 billion drams
Glass – 24,600,000 kg * 5 = 123 million drams
Paper - 49,250,000 kg * 45 =2 billion 216 million 250 thousand drams
Metal – 24,600,000 kg * 50 = 1 billion 230 million drams
Wood – 8,200,000 kg = 117,143 sq. m. *10.000 = 1 billion 171 million 430 thousand drams
Amount – 8.899.250.000.000
Calculating in relation to GDP for a given year 2018, it turns out 8.899.250.000.000/6.017.035.200.000=0.148%.
The following formula applies:
Q=(Σ( nPx (t)+ nPy (t)+ nPz (t)+… nPN (t)))/GDP(t)
where Q is the total share of solid waste in GDP,
X,Y ,Z,N - solid waste by type,
n - quantity received,
P - average prices at the corresponding collection points,
Σ is the total cost.
In other words, through sorting and raw material processing alone, GDP can increase by 0.148 percent. However, this waste can be recycled, as a result of which this share of GDP growth will be multiplied several times.
The scientific novelty of the article lies in the fact that by quantifying the economic benefits obtained from the collection of solid waste, the impact of the latter on increasing GDP was identified and the economic efficiency of collecting and processing solid waste was substantiated. In other words, it is calculated how much solid waste collection provides additional GDP growth, which, in turn, creates an incentive for private sector organizations to invest in collection and sorting enterprises.
Conclusion:
As throughout the world, in Armenia the collection and sorting of solid waste is one of the main problems of recycling. It is impossible to process solid waste if there are no means of collection and sorting. The calculations in the article show how useful solid waste collection and recycling is not only for environmental protection, but also for economic growth, revealing new potential that was previously overlooked. In particular, only the fee provides GDP growth, the calculation of which is presented in the article. Recycling this waste would greatly contribute to economic growth and reduce the use of primary raw materials, the price of which is on average 3 times higher than secondary raw materials.
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