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Frontiers of Environmental Science & Engineering

ISSN 2095-2201

ISSN 2095-221X(Online)

CN 10-1013/X

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Front. Environ. Sci. Eng.    2021, Vol. 15 Issue (2) : 33    https://doi.org/10.1007/s11783-020-1325-y
RESEARCH ARTICLE
Economics analysis of food waste treatment in China and its influencing factors
Ting Chen1,2,3(), Yingying Zhao1,2,3, Xiaopeng Qiu4, Xiaoyan Zhu1,2,3, Xiaojie Liu5, Jun Yin1,2,3, Dongsheng Shen1,2,3, Huajun Feng1,2,3
1. School of Environmental Science and Engineering, Zhejiang Gongshang University, Hangzhou 310018, China
2. Zhejiang Provincial Key Laboratory of Solid Waste Treatment and Recycling, Hangzhou 310018, China
3. Instrumental Analysis Center of Zhejiang Gongshang University, Hangzhou 310018, China
4. Huadong Engineering Corporation Limited of Power China, Hangzhou 311122, China
5. Institute of Geographic Sciences and Natural Resource Research, Beijing 100101, China
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Abstract

• Economics of food waste treatment projects at 29 pilot cities in China was examined.

• Roles of location, population size, processing technique, and income were studied.

• Economic benefits were limited with a profit to cost ratio of 0.08±0.37.

• Service population size affects construction economics significantly (P = 0.016).

• Choice of food waste processing technique affects operating economics notably.

This study examines the economic benefits of food waste treatment projects in China and factors affecting them. National-level pilot projects for food waste treatment located in 29 cities were selected as samples. The economics of food waste recycling from the investors’ perspective, in terms of investment during the construction phase and cost and benefit during the operation phase, was assessed. Results indicate that the average tonnage investment of food waste treatment projects was RMB 700.0±188.9 thousand yuan, with a profit to cost ratio of 0.08±0.37. This ratio increased to 0.95±0.57 following the application of government subsidies. It highlights the limited economic benefits of food waste treatment facilities, which rely on government subsidies to maintain their operations in China. Further analysis using a multi-factor analysis model revealed that regional location, service population size, processing techniques, and urban income exerted varying impacts on the economy of food waste treatment. Population size exerted the highest impact (P = 0.016) during the construction stage, and processing techniques notably influenced the project economy during the operation stage. The study highlights the need to prioritize service population size and processing techniques during economic decision-making and management of food waste recycling projects. The results of this study can serve as a valuable practical reference for guiding future policies regarding food waste treatment and related planning.
Keywords Recycling economics      Cost-benefit      Food waste treatment      Subsidy      Food waste economy      Circular economy     
Issue Date: 09 September 2020
 Cite this article:   
Ting Chen,Yingying Zhao,Xiaopeng Qiu, et al. Economics analysis of food waste treatment in China and its influencing factors[J]. Front. Environ. Sci. Eng., 2021, 15(2): 33.
 URL:  
https://academic.hep.com.cn/fese/EN/10.1007/s11783-020-1325-y
https://academic.hep.com.cn/fese/EN/Y2021/V15/I2/33
No. City Affiliation GL a) ER b) No. City Affiliation GL a) ER b)
1 Chifeng Inner Mongolia North-west MYCEZ 16 Mianyang Sichuan Southern GSEZ
2 Dali Yunnan Southern GSEZ 17 Shanghai Shanghai Southern ECEZ
3 Daqing Heilongjiang Northern NEZ 18 Qiqihar Heilongjiang Northern NEZ
4 Dongguan Guangdong Southern SCEZ 19 Chongqing
Qijiang		 Chongqing Southern GSEZ
5 Ganzhou Jiangxi Southern MYREZ 20 Shizuishan Ningxia North-west GNEZ
6 Handan Hebei Northern NCEZ 21 Wuzhong Ningxia North-west GNEZ
7 Hangzhou Zhejiang Southern ECEZ 22 Xi’an Shanxi Northern MYCEZ
8 Hulun Buir Inner Mongolia North-west MYCEZ 23 Xiangyang Hubei Southern MYREZ
9 Huaibei Anhui Northern MYREZ 24 Xuzhou Jiangsu Southern ECEZ
10 Huangshi Hubei Southern MYREZ 25 Zhenjiang Jiangsu Southern ECEZ
11 Jilin Jilin Northern NEZ 26 Yingchang Hubei Southern MYREZ
12 Jinan Shandong Northern NCEZ 27 Qingdao Shandong Northern NCEZ
13 Jinzhong Shanxi North-west MYCEZ 28 Quzhou Zhejiang Southern ECEZ
14 Liaocheng Shandong Northern NCEZ 29 Suzhou Jiangsu Southern ECEZ
15 Luoyang Henan Northern MYCEZ
Tab.1  Survey sample cities and their numbers
Fig.1  Economic parameters of the pilot projects (the red circle means that the value deviation exceeds 50% of the average): (a) Investment cost per ton food waste, (b) Operating costs per ton food waste, (c) Operating income per ton food waste.
Fig.2  The profit to cost ratio of pilot projects: (a) R excluding government subsidies, (b) R including government subsidies
Items Tonnage investment (ten thousand yuan /ton) Tonnage cost (yuan /ton) Tonnage income (yuan /ton) Profits to cost ratio
Minimum 41.39 88.34 78.40 -0.67
Maximum 122.43 709.30 749.93 0.83
Average 70.00 256.26 266.62 0.08
Standard Deviation 18.89 144.78 165.35 0.37
Tab.2  Statistical analysis of economic data of the pilot projects
Fig.3  Factor-wise assessment of FW treatment projects: (a) the average tonnage investment during the construction phase; and (b) average tonnage cost and tonnage income during the operation phase
Source Dependent variable Type III sum of squares df Mean square F Sig.
Construction period Tonnage investment Processing technique 994.291 1 994.291 4.125 0.065
Regional location 30.058 2 15.029 0.062 0.940
Urban income 567.051 2 283.525 1.176 0.342
Population size* 2854.270 2 1427.135 5.921 0.016*
Operation period Tonnage cost Processing technique* 240807.169 1 240807.169 27.505 0.000*
Regional location 14961.552 2 7480.776 0.854 0.450
Urban income 4032.568 2 2016.284 0.230 0.798
Population size 20628.465 2 10314.233 1.178 0.341
Tonnage income Processing techniques* 262776.387 1 262776.387 17.904 0.001*
Regional location 4090.907 2 2045.453 0.139 0.871
Urban income 5654.746 2 2827.373 0.193 0.827
Population size 64233.263 2 32116.631 2.188 0.155
Tab.3  Correlation between economic indicators and influencing factors
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