*119873*

Economics / 10. Enterprise ekonomiks

Dovga T.M.

Postgraduate student at economic faculty

of Kiev National Taras Shevchenko University

Approaches and implementation issues household waste recycling in Ukraine

Solid household waste (SHW) treatment is one of the “sharp” nature conservation problems in Ukraine. Nowadays average index of waste formation is 220-250 kilograms per year on one person and in the big cities can be even 330-380 kilograms per year. In general the bulk of this waste is 13 million tons per year and this number is increasing exponentially. Furthermore, among solid household waste there is a proportion of waste which is extremely increasing and that is not amenable to rapid expansion. In fact, it requires considerable space for storage. However, the number of overloaded landfills is rising, and, unfortunately, some of these dumps does not meet the standards of environmental safety. Currently, the number of landfills and dumps in Ukraine is about 4.5 thousand. Ukraine ranks first in terms of the harmful effects of landfills on the environment among European countries. In Ukraine about 52 million m³ of solid waste are produced annually, which is about 13 million tons, which are disposed to 6 thousand dumps and landfills, constituting total area more than 9 thousand hectares.

Incineration of waste is extremely dangerous for the environment and has a very negative impact on health, as it leads to the formation of toxic substances and compounds that accumulate in the atmosphere. In addition to mentioned aspect, this method is the most costly way of waste management. That is why today a fair amount of countries are directing their legislation with the aim of waste incineration to be banned partially, and some of them prohibit incineration completely.

To sum it all up, recycling is the only civilized and safe way of SHW handling (it must be mentioned that almost all components of solid waste can be reused) and minimization of waste formation that is connected with environmental awareness evolution of Ukrainian people.

Thus, we offer the following definitions made on the basis of critical approaches to the comprehensive study and generalization of existing views with the aim of integration into European and world economic systems, establishing effective national system of household waste treatment:

- recycling of solid household waste is a special, cost-effective and environmentally safe solid household waste processing system based on their household sorting in order to preserve natural resources by reusing recycling products as secondary raw materials. Complex recycling system comprises sorting, heat treatment, fermentation and other processes that provide maximum economic and environmental efficiency;

- solid household waste utilization is cost-effective and environmentally safe elimination of household waste or those of their components, to which cannot be applied recycling technologies for their destruction. Methods of utilization should be characterized by complete destruction of waste as the final stage of their management. To these methods belong exclusively possible waste disposal of biological origin, characterized by rapid and environmentally friendly decomposition in the soil and burning as a method of destroying household waste;

- secondary, waste utilization is elimination of waste component after allocation from them resource valuable element, which further processing neither is impossible nor does not carry economic benefits. In fact, this is the last stage of the destruction of household waste residues. It’s important to mention that for some waste components of the concepts of recycling and utilization are of the same meaning, for example glass, which is completely recycled and does not leave any residues behind.

Currently, the management and solid waste handling spheres are at the incipience level. Nevertheless, it must be certainly said that recycling of solid household waste is the raw material for formation and development of the national secondary resources market. It has an aim to reuse sustainable existing raw materials more efficiently as long as possible, which leads to slowing down the consumption of primary natural ingredients and minimizing environmental damage. The main problems of solid household waste (SHW) recycling development can be classified:

Pic. 1. Problems of recycling introduction in Ukraine

Implementation of "circular economy" to be built in future requires a stable functioning market mechanism of secondary resources. The Law of Ukraine "On Waste" defines waste as secondary raw materials and provides regulation of its collection and harvesting. However, there is no determination of the definition "secondary resources market" in the legislation. Furthermore, economists had not learned this theme enough. Compared to the highly developed European space, where the mechanisms of waste recycling have already established their operating and have been functioning over the years, the national secondary resources market of Ukraine is being still formed. Considering this fact, the scientist T. Andreeva gives the following definition: "Secondary resources market is a combination of economic relations between legal entities and individuals to buy their products that are used to replace primary raw materials or partial substitution according to their functional assignment and should be developed on the basis of self-regulation and with the state support " [10, с. 188]. These definitions are correct partly, but still have certain defects and are not fully convey the essence and purpose of the market. Taking it all into account, we propose the following definition: "Secondary raw materials (resources) market is a set of relations of the mechanisms formation and development of waste recycling products retardation in the system of production - economic relations with the aim to ensure goods production cycle based on reusing waste materials on principles of sustainable development through financial institutions and environmental instruments."

At the same time, the secondary raw materials market (except for national) has its own specific characteristics. Dynamics of prices for secondary raw materials is entirely determined by the state of demand for it from consumers. Specificity of its collecting and processing does not give an opportunity to suppliers to respond quickly on changing market conjuncture conditions. As a result, prices for secondary raw materials move spasmodically. With growth of demand prices quickly rise, because suppliers cannot increase the collection and satisfy consumers in the short term. On the other hand, sharp lowering prices is observed during falling demand, because firms can not immediately reduce the increased secondary raw revenue recycling and forced to sell goods at low prices.

Literature:

1. A. Beyond growth. Economics of sustainable development [text] = Beyond Growth. The Economics of Sustainable Development / G.Daily, NGO "Ukraine. Agenda for the XXI Century", Institute of sustainable solutions. - K.: Intelsfera, 2002. - 298 p.

2. Action Programme "Agenda for the XXI Century": Adopted by the United Nations Conference on Environment and Development in Rio de Janeiro (Summit "Planet Earth", 1992): Per. from English. - 2nd ed. - K.: Intelsfera, 2000. - 360 p.

3. Strategy for Sustainable Development of Ukraine. http://ecolabel.org.ua/index.php?id=253

4. The Law of Ukraine "On General Principles (strategy) environmental policy until 2020. http://www. rada.gov.ua

5. Standard 30772-2001. Resource. Waste management. Terms and definitions. Interstate standard. http://www.abono.ru/en/product/gost-30772-2001-resursosberezhenie-obrashenie-s-othodami-terminy-i-opredelenija/

6. Skorohod I.S. World experience of secondary resources / I.S. Skorohod //  International Economic Relations. - 2007. - № 12. - P. 229-233.

7. The Law of Ukraine "On Wastes". http://www. rada.gov.ua/