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Sensitivity Analysis as a Tool in Environmental Policy for Sustainability: The Case of Waste Recycling Projects in the Republic of Serbia

Author

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  • Ksenija Denčić-Mihajlov

    (Faculty of Economics, University of Niš, Trg kralja Aleksandra Ujedinitelja 11, 18000 Niš, Serbia)

  • Mladen Krstić

    (Maksi-Co Doo, 18220 Aleksinac, Serbia)

  • Dejan Spasić

    (Faculty of Economics, University of Niš, Trg kralja Aleksandra Ujedinitelja 11, 18000 Niš, Serbia
    Faculty of Economics, University of Belgrade, Kamenička 6, 11000 Belgrade, Serbia)

Abstract

Modern consumer society uses an increasing number of products to meet its needs, which become waste after use, thus posing a serious problem that threatens sustainable development. Investment in waste recycling, due to a high level of non-financial benefits, is considered sustainable, especially in the End-of-life Vehicles (ELV) and Waste Electrical and Electronic Equipment (WEEE) recycling areas. The research objective of this paper is to test the sensitivity of the model for sustainable management of recycling projects by applying a cost-benefit analysis (CBA) to investment projects of car and refrigerator recycling in the Republic of Serbia. By testing the key risk factors of the above investment projects within the sensitivity analysis, the main aim is to determine the critical value of these variables in terms of the financial and social acceptability of these investment alternatives. The results obtained indicate that state subsidies have the greatest influence on defining the model of sustainable investment, especially in the field of e-waste recycling. The impact of other factors, the price of secondary raw materials and the social cost of CO 2 emissions, is significantly smaller, but should certainly be taken into account when defining the optimal model of sustainable investment.

Suggested Citation

  • Ksenija Denčić-Mihajlov & Mladen Krstić & Dejan Spasić, 2020. "Sensitivity Analysis as a Tool in Environmental Policy for Sustainability: The Case of Waste Recycling Projects in the Republic of Serbia," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:7995-:d:420381
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    References listed on IDEAS

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    Cited by:

    1. Hilal Shams & Altaf Hossain Molla & Mohd Nizam Ab Rahman & Hawa Hishamuddin & Zambri Harun & Nallapaneni Manoj Kumar, 2023. "Exploring Industry-Specific Research Themes on E-Waste: A Literature Review," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    2. Vujadin Vesovic & Dragutin Jovanovic & Milos Arsic & Zoran Avramovic & Svetozar Sofijanic & Boban Djorovic & Natasa Gospic & Nena Tomovic & Dragan Milosevic & Mladen Dobric & Sinisa Arsic & Dragan Kos, 2022. "Identification of the Right Moment for Motor Vehicle Replacement—Life-Cycle Analysis in Serbia and Montenegro," Sustainability, MDPI, vol. 14(5), pages 1-22, February.
    3. Michał Gołębiewski & Marta Galant-Gołębiewska, 2021. "Economic Model and Risk Analysis of Energy Investments Based on Cogeneration Systems and Renewable Energy Sources," Energies, MDPI, vol. 14(22), pages 1-14, November.

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