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South African Journal of Industrial Engineering

On-line version ISSN 1012-277X

S. Afr. J. Ind. Eng. vol.20 n.2 Pretoria  2009

 

A social cost benefit analysis of extending an existing recycling plant to accommodate the recycling of the plastic fraction of cable scrap

 

 

M. du PreezI; T. LotteringII

IDepartment of Economics, Nelson Mandela Metropolitan University, South Africa mario.dupreez@nmmu.ac.za
IIAberdare Power Cables, South Africa tony.lottering@transnet.net

 

 


ABSTRACT

This paper investigates the economic efficiency of extending an existing cable waste recycling plant to accommodate the recycling of the plastic fraction of cable waste. The paper shows that when a cost benefit analysis (CBA) is carried out, the decision-making criteria generate conflicting results. More specifically, the net present value (NPV) is greater than zero, the internal rate of return (IRR) is less than the social discount rate, and the benefit cost ratio (BCR) is less than unity. Based on these results, one is unable to provide unqualified support for the project.


OPSOMMING

Die navorsing word toegespits op die uitbreiding van 'n bestaande kabelskrootaanleg vir die herwinning van plastiekafval. Koste-opbrengs-ontleding (CBA) toon dat toepaslike kriteria soos interne rentabiliteit (IRR) en koste-opbrengs-verhouding (BCR) nie die uitbreiding onomwonde ondersteun nie.


 

 

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REFERENCES

[1] Basel Convention. United Nations Environmental Programme (UNEP) (2002 and 2003).Technical guidelines for the identification and environmentally sound management of plastic wastes and for their disposal including technical guidelines on the environmentally sound management of plastic coated cables. http://www.basel.int/meetings/cop/cop6/cop621e.pdf. (Accessed 6th February 2006).         [ Links ]

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[9] Ready, R.C. (2005). Do landfills always depress nearby property values? Rural development paper No 27. http://www.nercrd.psu.edu/Publications/rdppapers/rdp27.pdf. (Accessed 23rd November 2006).         [ Links ]

[10] Du Preez, M. & Lottering, T. (2009). Determining the negative effect on house values of proximity to a landfill site by means of an application of the hedonic pricing method. South African Journal of Economic and Management Sciences, 12 (2), 256 - 262.         [ Links ]

[11] Du Preez, M. (2004). The discount rate for public sector conservation projects in South Africa. African Development Review, 16 (3), 456-471.         [ Links ]

[12] South African Reserve Bank (December 2004, June 2005, December 2005 and March 2006). Quarterly Bulletin. SARB, Pretoria.         [ Links ]

 

 

1 Corresponding author
2 The author was enrolled for an MCom degree at the Department of Economics, Nelson Mandela Metropolitan University

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