Enhancing Plastic Waste Recycling Facility: Case-Study of Economical and Environmental Impacts Analyzed through System Dynamics

Abstract

Plastic waste continues to pose a significant environmental challenge, with less than 10% effectively recycled globally. In Lviv, Ukraine, limited waste sorting infrastructure and increased waste generation due to recent population pressures exacerbate this issue. This research focuses on enhancing the capacity and quality of plastic recycling at "Company A," a leading facility in Lviv with over 30 years of market presence. By integrating three years of operational data, the study evaluates the economic and environmental impacts of implementing a washing line to address the limitations of manual purification processes. Using a System Dynamics approach and SARIMAX forecasting for demand modeling, three scenarios—Business as Usual, Washing Line Implementation (Self-Purchase), and Washing Line Implementation with Public Investment—are analyzed. The results demonstrate that washing line implementation significantly increases production capacity, improves product purity, and reduces greenhouse gas emissions. While both enhanced scenarios show substantial profitability gains, public investment provides smoother financial performance and earlier scalability. This research highlights the potential of existing recycling technologies to address current challenges effectively. It offers practical insights for both private enterprises and state institutions considering investments in sustainable plastic waste management, emphasizing the importance of leveraging proven solutions over speculative innovations.