Case study: Determination of the economic and operational feasibility of a material recovery facility for municipal recycling in Lucas County, Ohio, USA

Matthew J. Franchetti

Resources, Conservation & Recycling, 2009, vol. 53, issue 9, 535-543

Abstract: Solid waste minimization and recycling goals for municipalities are achievable through the installation of material recovery facilities (MRFs) and in certain solid waste management systems, government owned and operated MRFs are feasible and cost justified. The aim of this paper is to demonstrate a structured process to evaluate and determine the operational and economic feasibly of a government owned MRF that is based on financial engineering. As a companion, a case study from Lucas County, Ohio (USA) is provided that demonstrated this analysis process. In addition, the paper explores the impact of uncertainty in decision alternatives by placing a strong emphasis on economic efficiencies and a sensitivity analysis of the results to changes in the data inputs, specifically inflation, recycling levels, and recycling commodity market shifts. The key findings from the research indicate that the municipality will achieve a payback period of approximately 4 years, and a 10 years internal rate of return of 20.5%, versus the current system of out souring. The consequences of these findings, stemming from the economic and operational justification, led to the actual purchase of a MRF site for Lucas County, Ohio (USA). This research may serve as an example or model for other local governments considering the implementation of such a system.

Keywords: Material recovery facility; Municipality recycling; Economic analysis (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:53:y:2009:i:9:p:535-543

DOI: 10.1016/j.resconrec.2009.04.004

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