Economic calculus of the effectiveness of waste utilization processed as substitutes of primary materials

Along with technical and legal means, economic instruments are crucial components in the field of utilizing waste as substitutes of primary materials. Economic calculus of the effectiveness of replacing primary materials with secondary materials consists of determining the difference between the total costs of the production in which waste are used as secondary materials and the production in which primary materials are implemented. Choosing an appropriate method of calculation is significant when it comes to defining the effectiveness of substituting primary for secondary materials. The method should allow measuring and comparing the final results of investments. Also, it ought to be adjusted to the character of a given project. The aim of this paper is twofold. One is to review the area and to introduce the reader with methods of calculation of the effectiveness of waste utilization as secondary materials (literature review). Then the calculation of the effectiveness of the production in which certain wastes are utilized was proposed the effectiveness of waste utilization processed as substitutes of primary materials is analyzed. Looking at the calculation of economic effectiveness, one may assume that the production is profitable when the effectiveness index is higher for the production in which waste material is used.