WEEE/E-waste Business Model - International Environmental ...
WEEE/E-waste Business Model - International Environmental ...
WEEE/E-waste Business Model - International Environmental ...
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significantly. It shows that for <strong>waste</strong> white goods treatment and disposal, the<br />
combination of incentives should be higher. Financial viability is also sensitive to price<br />
fluctuations i.e. prices with respect to both input raw material as well as output. A<br />
comparative analysis of financial analysis indicators shows that viability improves with<br />
the improved capacity utilization. Capacity utilization depends upon the availability of the<br />
raw material. In order to make the project more viable an efficient E-<strong>waste</strong> collection and<br />
transportation system and a set of incentives like lower interest rate or duty exemption or<br />
subsidy on land may be planned. These measures need to be implemented in the form<br />
of a business model.<br />
The key elements, which form the basis of development of business model include risk<br />
profile of the project, financial viability of the project and consumer behavior. The major<br />
risks of medium to high intensities, which have been identified, are given below.<br />
1. Risks due to lack of definition of E-<strong>waste</strong> in existing regulations<br />
2. Risks due to part inclusion of E-<strong>waste</strong> in existing Waste Rules<br />
3. Risks due to lack of harmonization of E-<strong>waste</strong> in Export/ Import rules<br />
4. Risks of availability of raw material<br />
5. Risk associated with collection<br />
6. Risk associated with competition<br />
7. Type of raw material/ input to E-<strong>waste</strong> recycling system<br />
8. Scale of operation<br />
9. Expected yield/ output<br />
10. Price Risks<br />
Risks 1 to 3 are related to policy and regulatory level interventions. Risks 4 to 6, 10 are<br />
related to market and logistics interventions. Risks 7 to 9 are related to technology level<br />
interventions. Consumer behavior reflects the attitude of the consumer for E-<strong>waste</strong><br />
management. It has been well established that consumers want value of their E-<strong>waste</strong><br />
and may prefer exchange schemes where retailers offer them discounted price of the<br />
brand new item in exchange of their old electrical and electronic equipment. The three<br />
different types of E-<strong>waste</strong> business models, which can be implemented, are described<br />
below.<br />
1. Conventional E-<strong>waste</strong> Recycling <strong>Model</strong><br />
2. Public Private Partnership (PPP) based E-<strong>waste</strong> <strong>Business</strong> <strong>Model</strong><br />
3. Extended Producer Responsibility Based <strong>Business</strong> <strong>Model</strong><br />
The analysis of the above three models indicates that there are three mechanisms for E<strong>waste</strong><br />
management out of which two mechanisms are at extreme levels i.e. conventional<br />
E-<strong>waste</strong> recycling model and EPR based business model. Strength, Weakness,<br />
Opportunities and Threat (SWOT) analysis of these two extreme mechanisms has been<br />
carried out to understand the applicability under the current business environment. The<br />
common points, which can be inferred from this analysis, are given below.<br />
1. Regulatory intervention is required in implementation of both the models.<br />
2. Government participation will boost the implementation of both the models.<br />
3. Potential of leakage exists in both the systems i.e. they are not foolproof<br />
system. Though EPR system offers the potential of reduction of leakage of<br />
<strong>waste</strong> to informal sector, it is also not 100% foolproof. The recent EU report<br />
3