Abstract
This paper describes a method of estimating the “true” internal costs of industrial waste, aimed at promoting environmentally friendly waste management. The study employs contribution margin analysis and a model – The Model for Efficient Use of Resources for Optimal Production Economy (EUROPE) – introduced by the author for assigning industrial costs to waste. In a business sense, waste is regarded as having the same basic status as any normal industrial product – the equality principle. Application of the method is suggested to create incentives for environmental improvement and profitability improvement in companies. Although the results of two case studies show the generation of waste to have a substantial negative impact on the final operating income, due to the internal shadow price costs it creates, this is regarded as an unavoidable consequence of the companies' acting in accordance with the principle of sustainable development.
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Stenis, J. Environmental Optimisation in Fractionating Industrial Wastes Using Contribution Margin Analysis as a Sustainable Development Tool. Environ Dev Sustain 7, 363–376 (2005). https://doi.org/10.1007/s10668-004-2377-z
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DOI: https://doi.org/10.1007/s10668-004-2377-z