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

 

 

M. du Preez^I; T. Lottering^II

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

 

 

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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.

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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

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