Closed-loop supply chain potential of agricultural plastic waste: Economic and environmental assessment of bale wrap waste recycling in Finland

Bening Mayanti and Petri Helo

International Journal of Production Economics, 2022, vol. 244, issue C

Abstract: It is estimated that 12000 tons of plastic waste is annually generated from the agricultural sector in Finland, and more than half of it comprises bale wrap films. Up to 70% of plastic film waste from the agricultural sector in Finland goes into landfills, and only around 10% is recycled. Recycling plastic material is desirable in order to close the loop in achieving a circular economy. This paper aims to assess the environmental and economic implications of bale wrap collection and recycling within the Finnish context. Two different collection scenarios, S1 (once a year collection) and S2 (twice a year collection), covering 179 farms, were assessed. The research applied vehicle routing problem and environmental life cycle costing to quantify the cost and environmental impact per ton of granulate recycled material produced. It took a consequential approach, where the system boundary was expanded, and product substitution was considered. Overall, S1 offers 27% more economic savings with 36% less global warming potential (GWP) than S2. The collection phase, which has not commonly been included in existing recycling studies, shows significance in both scenarios. Although it only contributed about 0.7-1.2% to GWP, collection accounted for 32-36% of the total economic cost. Critical parameters were primarily associated with the market substitution factor and material loss during the recycling process. This study demonstrates that recycling bale wrap can provide environmental and economic savings. Furthermore, it shows the importance of decision-makers in prioritizing goals to balance environmental and economic objectives.

Keywords: Circular economy; Life cycle assessment; Life cycle costing; Global warming potential; Agricultural plastic waste; Recycling (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:244:y:2022:i:c:s0925527321003236

DOI: 10.1016/j.ijpe.2021.108347

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