Impact of garbage management in the Bratang Compost House on externality as assessed from Islamic natural resource economics
Suherman Rosyidi, Yunita Nur Laili Fajar Musyarif, Ayu Hadi Listiyaningrum , Eko Fajar Cahyono
Islamic Economic Department
Faculty Economics and Business
Airlangga University
Abstract
The city of Surabaya obtained the adipura trophy in Indonesia in 2019 because it has a very good performance on environmental management, especially waste. To handle the problem, the mayor made a program, one of which was the construction of a compost house in Bratang. Waste management in the Bratang Compost House has a proven positive externality from odor and the sound produced does not exceed the prescribed standards. Besides that, the existence of a compost house can help preserve the environment of Surabaya and become a source of local PLTSa (garbage power plant). This paper also proves that waste management in the Bratang Compost House is feasible to run as evidenced by NPV > 0 and BCR > 1. This research can be a reference for governments in other regions in managing waste to be something that is beneficial for the community, environment, and local government. This paper will be an additional literature for the government, the community, academics, and those who care about the environment about the impact of Islamic perspective waste management.
Keywords: Garbage management, externalities, cost benefit analysis, Islamic Resource Economics in an Islamic perspective.
Topic: Sustainable Development