Profitability and Policy Pressure Determination on Circular Business Model in Household Waste Management: A System Dynamic Approach

Although landfills damage the environment due to over-exploitation of land resources, several countries still depend on this waste management strategy. To reduce this dependency, several countries have begun to increase the level of waste recycling due to regulations pressure from regional governments (e.g., European Union). There are also initiatives from individuals or organizations to create a more circular waste management business, which seeks to extend the product life cycle from waste recycling, reuse and reduction, has been developed. This research attempts to map the interrelationship between government policy and circular waste management (CWM) business initiatives from individuals or organizations. Using a System Dynamic (SD) approach, this research produces qualitative and quantitative model to explain the interrelationship. From the SD model simulation, the results show that the decrease in the amount of waste sent to landfills is affected by the population size and the level of waste production per capita. While qualitatively, the model shows that capacity building both in quality and quantity and waste segregation campaigns for the community are important in growing the CWM business in the future.