Industrial Management Models with Emphasis on Construction Waste

Abstract: Increased attention is nowadays devoted to waste management. The objective of this work is to analyse how commonly known business economic models and methods, as well as the Polluter-Pays Principle, can be applied to waste management in general and to waste fractionation in particular, so as to facilitate environmental optimisation of industrial and construction waste fractionation. In discussing the functionality of the modified models arrived at, systems theory is applied in order to get a scientifically adequate picture of the societal context of the models. A further objective is to investigate certain aspects of construction waste management economic model theory through case studies. Thereby, the applicability of modified versions of the above mentioned business economic models applied in construction waste management is tested. Generally, the work is performed in order to provide flexible management instruments adapted to changing demands. The economic model methods are studied and modified from a waste management point of view. In this context, the "equality principle" introduced earlier (Stenis, 2002), interpreted as equality between (industrial) waste and normal products in business economic terms, is applied. "The model for Efficient Use of Resources for Optimal Production Economy (EUROPE)", is introduced for assigning industrial costs and revenues to waste by the employment of so-called shadow prices. The modified, mainly cost assessment oriented, methods are evaluated from a business economics perspective in relation to waste management. The effort in this work represents a shift of views within the field of waste management. This shift is consistent with the concept of sustainable development. Also, the present study represents general environmental and financial advantages for society at large. It is concluded that the findings point at the partly fruitful possibility to modify commonly used cost benefit estimation methods and contribution margin analysis including the Polluter-Pays Principle (PPP) in a practical industrial and, to a certain extent, a practical construction waste management context by the use of the equality principle. Therefore, it can be said that construction waste management can be carried out by using certain (modified) economic models. Summarised, the major findings of the work are as follows: 1) Presentation of an alternative way of looking at industrial waste in a business context; 2) Introduction of the EUROPE model for assigning costs to industrial waste to be used in conjunction with the introduced equality principle to provide long term recommendations regarding waste involving the use of "environmental shadow prices"; 3) Presentation of how the Polluter-Pays Principle can be incorporated into the financial accounts of a manufacturing company by the employment of the equality principle in conjunction with the introduced concept of the "environmental adjustment cost"; 4) Proposal for a shift of views within the field of waste management. Summarised, the recommendations for the future in this work are as follows: 1) As regards general industrial conditions, commonly used cost benefit methods, the contribution margin method and the Polluter-Pays Principle approach are suggested to be applied in a modified way through the use of the EUROPE model, the basis being the equality principle introduced. 2) As regards construction management conditions, the average cost estimation method is suggested to be applied in a modified way through the use of the EUROPE model, the basis being the equality principle introduced.