Management of based on public private partnership auto-recycling projects

The article is devoted to the acute problem connected with managing autorecycling projects in accordance with the environmental security requirements and economic effectiveness. Lately, the problem of environmentally-friendly recycling of used automotive components has become very urgent in Russia due to the increasing number of cars in the country. The existing car recycling programs do not solve this problem as they deal with cars and do not recycle separate car components. Environmental fee (or eco fee) existing in our country does not cover all range of used automotive components as well, and the existing organizational and economic autorecycling mechanism makes it impossible to solve environmental problems according to the market approach in full. Therefore, it is essential to develop a mechanism for managing autorecycling projects which would involve both effective market approaches and the state ones. To this end, the authors suggest exploiting public-private partnership (PPP) to increase environmental and economic efficiency in implementing autorecycling projects. The focus is made on such forms of public-private partnership as delegation of control and concession. It is suggested to make concession of infrastructure facilities and areas for stocking used automotive components which are not recyclable. Some government functions in managing automotive components’ sorting can be delegated as well as management of finance. As a result, exploiting PPP tools in managing autorecycling projects will provide the opportunity for maintaining “transparency” of financial flows in handling used automotive components, recyclers will be encouraged to introduce safe and modern recycling technologies and the level of environmental risks in managing autorecycling projects will be reduced.

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