Economics analysis of food waste treatment in China and its influencing factors

Highlights

• Economics of food waste treatment projects at 29 pilot cities in China was examined.

• Roles of location, population size, processing technique, and income were studied.

• Economic benefits were limited with a profit to cost ratio of 0.08±0.37.

• Service population size affects construction economics significantly (P = 0.016).

• Choice of food waste processing technique affects operating economics notably.

Abstract

This study examines the economic benefits of food waste treatment projects in China and factors affecting them. National-level pilot projects for food waste treatment located in 29 cities were selected as samples. The economics of food waste recycling from the investors’ perspective, in terms of investment during the construction phase and cost and benefit during the operation phase, was assessed. Results indicate that the average tonnage investment of food waste treatment projects was RMB 700.0±188.9 thousand yuan, with a profit to cost ratio of 0.08±0.37. This ratio increased to 0.95±0.57 following the application of government subsidies. It highlights the limited economic benefits of food waste treatment facilities, which rely on government subsidies to maintain their operations in China. Further analysis using a multi-factor analysis model revealed that regional location, service population size, processing techniques, and urban income exerted varying impacts on the economy of food waste treatment. Population size exerted the highest impact (P = 0.016) during the construction stage, and processing techniques notably influenced the project economy during the operation stage. The study highlights the need to prioritize service population size and processing techniques during economic decision-making and management of food waste recycling projects. The results of this study can serve as a valuable practical reference for guiding future policies regarding food waste treatment and related planning.

Graphical abstract

Keywords

Recycling economics / Cost-benefit / Food waste treatment / Subsidy / Food waste economy / Circular economy

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Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant No. 51878611), and the State Scholarship Found by the China Scholarship Council (201908330103).

Electronic Supplementary Material

Supplementary material is available in the online version of this article at https://doi.org/10.1007/s11783-020-1325-y and is accessible for authorized users.

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