|標題：Recycling fund management on environmental and economic goals under uncertainty|
|作品名稱||Recycling fund management on environmental and economic goals under uncertainty|
|會議名稱||24nd International Conference on Multiple Criteria Decision Making (MCDM 2017)|
|摘要||This study focuses on how to efficiently manage a recycling fund through environmental and economic goals under an uncertain environment. Targeting the aspect of a long-term accumulated fund, instead of on a yearly basis, we find that flexibility in managing the fund provides a buffer against the uncertainties on the fund’s cash flow.
In order to monitor the fund use in an uncertain environment, Taiwan’s Recycling Fund Management Board (RFMB) has an environmental goal that maximizes the recycling rate by a subsidy to the recycling industry so that there is less damage to the environment. The recycling industry aims to maximize its profits and thus intends to improve its recycling quality by all means. These two goals are usually in conflict, and their tradeoffs can be examined based on two models. The first model, the yearly balance model, is the current setting by RFMB whereby the fund is collected and offset as a yearly subsidy. The second model proposed by our study, the multi-period model, considers the accumulation of the fund for its expenditure over a period of years. Following the pattern of the historical data from RFMB, we develop four scenarios covering possible sales volumes of electronics products to estimate the fund incomes in future years. The numbers of waste electronics products in the future are also estimated from a survey from local customers on discarded probabilities. Through a discounting factor and an inflation rate, the cash flows are integrated into the analysis.
The results herein show tradeoffs between the goals of both models on the recycling fund management of the electronics products. Taking into consideration of a minimal requirement for promoting recycling quality, we develop a compromised recycling rate. In addition, the multi-period model provides a better outcome than the yearly balance model for any situation under four scenarios and two fund settings - offset yearly and earmarked. The set-up of the earmarked fund also performs well. Finally, we suggest RFMB take a further step on considering the proper balance between both goals in using the multi-period model for recycling fund management in the long run.
|關鍵字||Recycling, Fund management, Scenario planning, Environmental goal, Economic goal|
|出處||Abstract Proceedings of MCDM 2017|