Environmental Cost Evaluation of Food Industry Waste

Referring to environmental economic theory, production activities can have impacts (costs or benefits) for third parties not directly involved. Food industry waste that pollutes the environment is a form of negative externality. This study aims to conduct a comprehensive evaluation of the environmental costs caused by food industry waste and assess the effectiveness and economic efficiency of various waste management alternatives. The results of this study are expected to contribute to the development of more economically just environmental policies and encourage the food industry to be more responsible in maintaining environmental sustainability through a measurable and data-driven approach. The estimated environmental costs of food industry waste can reach tens of millions of rupiah per year, depending on the scale of the industry, the type of waste, the location, and the management method. By internalizing these costs, the industry can be more encouraged to adopt more responsible waste management technologies.