Risk assessment for sustainability in e-waste recycling in circular economy

Abstract

E-waste is a hazardous concept for human health, environment and businesses, and therefore, risk assessment is essential to eliminate or reduce the negative effects of e-waste in a circular economy. Decision-making plays an important role during the risk assessment in e-waste recycling. This study aims to develop a decision tool under uncertain and risky conditions for achieving sustainability in electronic waste (e-waste) recycling in circular economy. Prospect theory and its aspects are integrated with the sustainability risk assessment in e-waste recycling. In order to evaluate the irrationality and risk attitudes of decision makers in a risky and uncertain environment, the prospect theory-based TODIM (acronym in Portuguese for interactive and multicriteria decision-making, i.e. Tomada de Decisao Interativa Multicriterio) method for a previous computer disassembly problem is used. Using prospect theory, the relationship between loss aversion, reference point, framing and two selves effect, and sustainability dimensions is presented with a sustainability risk assessment point of view. Further, tasks of computer disassembly processes are prioritized by considering risk factors. The results showed that random access memory modules, motherboard and power supply are the highest priority risks based on the evaluation of listed twelve sustainability risks. In this study, it is suggested that prospect theory is suitable for decisions under risk and uncertainty, and it is applicable to integrate sustainability risk assessment and prospect theory in order to fulfil the gap of knowledge. Relationship between prospect theory and sustainability risk assessment.