Abstract
In the context of closed-loop and integrated production systems Koopmans linear activity analysis of production provides a relevant method for decision makers. The benefit of the method is to consider alternative production technologies at a time and model multiple material flows (inputs and outputs, including waste/pollutants) as well. In this paper Koopmans theory is proposed for modeling the reduction of waste in closed loop production processes. The method of linear activity analysis provides flexibility to measure the amount of waste by setting limiting constraints justifying the purpose of the model. Based on these features the method can be used in the future for modeling Blue Economy type of businesses. The case study of a Hungarian apple juice factory compares the conventional/linear and the new/closed loop production model. Result in GAMS software yields notable outcomes for the closed-loop apple juice factory showing not only the reduction of waste and by-products, but the expansion of new value-added products and jobs at a profitable level.
Highlights
The balance between the three major players: environment, economy and society, was strongly affected by industrialization [1]
Taking the advantage of Koopmans methodology the aim of this study is to define the model for closed-loop production systems and to investigate it on the case study of a Hungarian apple juice factory
The conventional and closed-loop apple juice factory linear model was written in GAMS software
Summary
The balance between the three major players: environment, economy and society, was strongly affected by industrialization [1]. Negative consequences such as pollution of natural waters, depletion of natural resources (oil, minerals), soil erosion, land conversion, loss of species, and climate change (carbon emission) have been escalating for such a level where consequences in some cases are irreversible. Open Journal of Social Sciences, 4, 39-45. K. Hartung many researchers and policy makers to restrain these negative changes. The ultimate change has to be driven by careful and conscious planning where interrelatedness will be explicitly recognized between social, economic and environmental issues [2]-[6]
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