South African manufacturers, including those who produce electrical and telecommunication cables, are required by the National Waste Management Strategy (NWMS) (drawn up by the Department of Environmental Affairs and Tourism (DEAT)), to carry out waste management in a coordinated and controlled manner. It is also becoming more difficult for South African companies, who produce for export markets, to conduct business internationally if they do not have some form of environmental management system in place. While there will always be scrap generated in any manufacturing environment, the aim is, first and foremost, to reduce this to acceptable levels and, secondly, to dispose of all scrap produced in a socially responsible manner. This study focuses attention on waste management, in the form of recycling, in the cable manufacturing industry. The purpose of this study is twofold: first, to examine the economic case, by means of a cost-benefit analysis, for the establishment and operation of a telecommunication cable waste recycling plant for the purpose of recycling copper conductor; second, to examine the economic feasibility, by means of a cost-benefit analysis, of extending the existing facility in order to accommodate the recycling of the plastic fraction contained in the cable waste. A specific cost-benefit stream was generated over a project period of 20 years for both CBAs. In both CBAs costs and benefits were categorised as being either primary or secondary. The primary costs and benefits for both CBAs were all financial in nature and were valued using market prices. The secondary costs of establishing and operating a cable waste recycling plant for recycling the copper conductor included effluent costs and noise pollution costs. The secondary benefits, on the other hand, included the creation of downstream industries. The secondary costs of extending an existing cable waste recycling plant, so as to accommodate the recycling of the plastic component of cable waste, included costs related to the generation of greenhouse gases and asthma. The secondary benefits, conversely, included the increase in house prices due to the reduction of landfilling of the plastic component of cable waste. The determination of increased house prices due to landfill avoidance was carried out using the hedonic pricing method (HPM). The hypothesis was that house values would increase the further removed they were from the landfill site. Applying regression analysis to the derived hedonic pricing (HP) function showed that there is a definite correlation between the two. Properties positioned two kilometres from a landfill site in New Brighton Port Elizabeth, Eastern Cape, were found to have higher values than those positioned adjacent to the site. From the cost-benefit streams, net benefits were calculated for each CBA and discounted to present values in order to provide a standard of comparison. The social discount rate used in this study to calculate the present values reflected a combination of the social opportunity costs of capital and the social time preference rate. The rate used was calculated as the average annual rate between 2000 and 2005 and amounted to 6.72 percent. It was derived from a combination of the opportunity costs of government borrowings, household consumption borrowings and return on savings.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8993 |
| Date | January 2008 |
| Creators | Lottering, Tony |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MCom |
| Format | xiv, 156 leaves : maps, ; 30 cm, pdf |
| Rights | Nelson Mandela Metropolitan University |
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