Liquidation of organic trash by private firm

Brief description of the solved problem: Liquidation of organic trash by private firm
Country of the origin: USA
Type of theself-goverment: City
Name of the self-goverment: San Francisco, California, USA
Date of realization: current

Detail description of solved problem

Any human actvity, economical or other, which requires the valuable resouces is closely connected with the problem of trash, which come out of this. On the other side, evaluation of value is necessarily subjective i.e., what is the trash for the first side, that can be valuable resource for the other side, which can be object of business transaction. By the reason of this the problem of the trash can be solved by market sollution. Few great firms perform in the area of liquidation of the trash. The commom modus operandi is joint-venture with the municipality. This joint venture provides the liquidation of the trash by the storing in the rubbish dump, by the burning of the trash, ot through the recyclation. The producer of the trash pays for such service. This sollution isn´t bad but in many aspects isn´t necessray the best one, because of the producent of the trash isn´t motivated to get rid of the rubbish by the reason of improving his economical state, but only by the reason of threat of legal penalty for the improper disposal with the rubbish. If there is the possibility of the market sollution the activity of the self goverment and using of the public budgets isn´t necessary.

Market sollution also partially solve the problem of the illegal rubbish dump, because the market creates the motivation for selling of the trash. The trash is the ownership of the producent If the subject can sell the trash, he will not have a reason for storing it on the illegal rubbish dump, which is at first the breaking of ownership of the other with the possibility of the civil litigation, and at the second there is possibility of the fine.

Municipalities invested in the area of waste management, in the year 2005 resources in the amount 104 645 000 SK, expenses were in the amount 2 690 800 000 SK and returns in the amount 2 391 925 000. Demand on public budget would be possible to decrease by application of market sollutions.

Detail description of strategy of sollution

The above mentioned strategy, that the trash can be object of the market relations is applied in the city San Francisco by the company Jepson Prairie Organics, which operates the private utility for liquidation of organic rubbish. Jepson Prairie Organics is daughter company of Norcal Waste Systems Inc., which is wholy owned by employees. This firm (Jepson…) liquidate organic rubbish consisting of the food scrap and yard trimmings. The supplier of the firm are restaurants, hotels, cafes and similar businesses in San Francisco. This firms provide especially food scrap, household in neighbourhood provides yard trimmings. The Jepson process aproximately 5200 tons of food scrap a 2000 tons of yard trimmings per month. This trash is technologically processed, and result is the compost, which is sold to the vineyards, farms and to other customers.

Description of results of sollution

The acquisition of the rubbish is very interesting. The company dosn´t pay to the suppliers directly, but provides the free removal of the trash. The return for supplier is the lower fee for removal of the rubbish, because of the rubbish bin of supplier will be full late, and it isn´t necessary to remove its so often. The producer of the rubbish doesn´t need so much rubbish bins, or this one can be smaller and also cheaper. The crucial point is diffrence between the expenses of separation of the rubbish and the „prize“ of the used time. The clients of the Jepson are the facilities, which produce mostly the organic trash, and it isn´t difficult to separate its. The choice is clear – remove sell the trash by Jepson. Such system of recyclation is effective, because the producer of the rubbish is motivated to sell rubbish. Other systems of recyclation are often based upon the statutory duty of the producer of the trash to separate the trash and he has to pay full amounz for removing rubbish. This type of systems can´t be effective, becasue of the single motivation of producer is the internal responsibility for protection of enviroment. Economic gains for the public are the less volume of the trash in the rubbish dump, and the cleaner air in the area, because the rubbish isn´t burnt  in the municipal waste incineration plant. We can find the similar examples also in Slovakia, especially the firms, which buy the old iron or paper. The principle of their business is the same – to pay to the producer of the trash.



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