Decoding interdependencies between primary and secondary raw material markets by means of the Capacity Model

On the basis of the well-known life-cycle-concept the Capacity Model presents an explanation approach for the interdependencies between primary and secondary raw material markets alongside the life-cycle of different waste materials. Depending on site capacity and waste amount the price for a certain waste material is either determined by the disposal market or the energy and raw material market.

Consequently the price is either based on the disposal and/or treatment costs or on the price of the substituted primary raw material price. In matters of interdependencies to markets that underlie substantial variations, interlinking waste industry into the raw material industry makes it vulnerable to prevalent changes that have their origin within the latter. The necessity arises for an adequate description and explanatory model like the Capacity Model. Following an abductive approach the model offers the basis for discovering hypotheses in regard of the interdependencies between the primary and secondary raw material markets. Considering the position of different secondary raw materials within the Capacity Model there are different strategic implications for regulating the product and service programme on an individual firm’s level. Companies within the waste management industry are able to seize their chances for enlargement of their business segment as well as for the possibility to prolong their own value chain in a more efficient way.



Copyright: © Wasteconsult International
Quelle: Waste-to-Resource 2011 (Mai 2011)
Seiten: 10
Preis: € 0,00
Autor: Mag. Dr. Hannes Klampfl-Pernold
Univ.-Prof. DI Dr. mont. Roland Pomberger
Ing. Mag. Gerald Schmidt
 
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