Task 2

Improve the efficiency of businesses involved in collecting and processing plastics in New York State

Goals/Objectives

  • Assess and improve plastic recovery efficiency (i.e., efficiency in sorting plastic from everything else in the material coming in), and sorting efficiency (i.e., how efficiently (or cleanly) recovered plastic is separated into different grades of plastic) in New York State.
  • Assess the productivity of material recovery facilities (MRFs) in NYS, an integral part of the reverse supply chain, and empirically analyze how firm characteristics like economies of scale and economies of scope, and socioeconomic factors like residential Supplemental Nutrition Assistance Program (SNAP) use and education levels influence their recycling performance.
  • Conduct a systematic evaluation of recycling efficiency of Material recycling facilities (MRFs) by measuring recycling efficiency of MRFs under framework of data envelopment analysis (DEA), which is an issue of significant interest in a circular economy.
discarded plastics ready to be sorted for recycling.
  • Material Recovery Facilities (MRFS): divert between 25% to 75% waste from landfills (Kessler, 2009) and produces nine times lower greenhouse gas (GHG) emissions than alternatives (Möck et al., (2022).
  • Challenges: high contamination rates and processing costs, low participation rates, and volatile commodity prices (Townsend et al., 2022).
    Lack of accessible and reliable data on recycling processes and outputs.
  • Objective: Investigate key internal and external drivers that influence the volume of materials recovered by MRFS for recycling and improve their productivity.

Methodology

  • An econometric analysis utilizing a panel dataset comprising 91 MRFs operating in New York State (NYS) during the years 2016–2020, resulting in 361 records was used.
  • A fixed effects panel regression analysis in which the intercept of the regression model is permitted to differ between individuals or groups was conducted to evaluate the model.
  • Tests including the Hausman Test justified the use of a fixed effects regression model as compared to a pooled OLS or random effects regression model. The model was also assessed for the presence of cross-sectional dependence, serial correlation, and heteroskedasticity.
  • Survey methods including questionnaires via email was also sent to MRFs in NYS requesting information about the sorting equipment used at their facilities.
  • Analytical research to provide a novel mathematical model under Data Envelopment analysis (DEA) to measure recycling efficiency of MRFs.

Task Team Members

  • Aditya Vedantam, Associate of Operations Management, School of Management, University at Buffalo
  • Nallan Suresh, Associate Dean for Faculty, Research and Centers, UB Distinguished Professor, School of Management, University at Buffalo
  • Nima Alizadeh Basban, PhD student, School of Management, University at Buffalo

Results/Preliminary Results

  • MRF’s with greater economies of scale and economies of scope recover significantly higher volumes of recyclable materials in NYS. 
  • The onset of China’s National Sword policy was shown to significantly reduce the volume of materials recovered by MRFs in NYS.
  • Interestingly, the positive impact of economies of scope/material variety on recycling output was higher after the implementation of China’s National Sword policy signaling diversification benefits. 
  • Education level and SNAP benefits use by residents were also seen to significantly influence the volume of materials recovered by MRFs.
    • Residents with a high education level contribute positively towards volumes recovered by MRFs, whereas residents with a low education level contribute negatively towards volumes recovered by MRFs. 
    • There is a positive and significant effect of SNAP benefits use and the amount recovered by MRFs for recycling. 
  • The formulation of a new mathematical model to measure the recycling efficiency of MRFs in New York State using Slack Based Models (SBM), an advanced DEA approach.
  • Calibrated the contributed SBM model with data from MRFs in New York State

Publications and Presentations

Publications

Two working papers are targeted for submission for peer review:

  • A novel approach to measure the recycling efficiency of material recycling facilities (MRFs) in New York State
  • Uncovering the Drivers Influencing the Recycling Performance of Material Recovery Facilities

Conference Presentations

  • Ajmal et al., (2024). Exploring the Factors Impacting Recycling Performance of Material Recovery Facilities. 34th Annual POMS Conference. April 2024 (Forthcoming).
  • Uncovering the Drivers Influencing the Recycling Performance of Material Recovery Facilities, Federation of New York's Solid Waste/Recycling Conference & Trade Show at The Sagamore, Bolton Landing, NY, May 21 - 24, 2023
  • Recycling efficiency of material recycling facilities in New York State using data envelopment analysis (DEA) approach. 2024 MIDWEST Decision Science Institute Annual Conference. (Will be presented at the Williamson College of Business Administration at Youngstown State University, OH, USA, 12th-13th April 2024)

Ongoing/Future Work

  • As part of future work, we will study hub and spoke based network design models will be investigated for efficient recovery of plastic waste, particularly for rural areas in New York State.
  • We will investigate secondary sortation-based business models for plastic recovery in New York State in collaboration with industry partners (e.g., Titus MRF Services).
  • Stakeholder interviews will be conducted to explore why PRFs have failed in the past and what needs to be done differently for them to be successful in the future).

Task Alumni

  • Dr. Khadija Ajmal, Assistant Professor of Transportation & Logistics, University of Wisconsin Superior