This article throws light upon the top six methods used for conserving resources. The methods are: 1. Material Substitution 2. Product Life Extension 3. Recycling 4. Optimum Recycling 5. Recycling and Pollution Taxes 6. Waste Reduction.

Method # 1. Material Substitution:

There are many possibilities of material substitution by which, the use of a material resource can be restricted by finding an alternative resource. The problem in this is that many materials have extensive uses and also joint uses.

Copper sheet can be substituted by aluminium, which at the same time would reduce demand for soldering agents made from and lead. Aluminium is being extensively substituted for tin, particularly, in the production of metal cans and containers. Plastics are being used for insulation and anti-corrosive purposes where lead and zinc respectively were previously used.

But, the essential points in the discussion of material substitution are as follows:

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(a) We cannot expect a neat “phasing” of scarcity, such that, as one resource runs out, another becomes available and so on. There is possibility of complete sets of raw materials, substitutable among themselves will be depleted at about the same time.

(b) The substitution may take place with a time lag sufficient to cause disruption in the productive activities of the economy.

(c) Further, the substitute material may cause more pollution than the materials which were in use. For example, aluminium smelters may involve more pollution than their counterpart for tin.

(d) The substitute materials may well require higher energy inputs, as is the case with low-grade copper exploitation.

Method # 2. Product Life Extension:

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This is a method by which the durability of the product is extended by deliberate design, so that the need for replacement would be postponed.

It is a common practice that many modern producers design the goods for early disposal by the consumers to serve twin purpose of:

(a) Boosting the sales and profits of the producing firm by encouraging consumers to go in for replacement of their goods more rapidly,

(b) Reflecting consumer’s apparent desire for rapid changes of their goods for the sake of novelty.

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By extending the life of the product, the requirement of resource materials can be appreciably brought down.However, the product life extension method has some disadvantages. It requires the customers to hold on the goods for a longer period.

This will be possible only with substantial increase in the quality of the product to extend its durability. Otherwise, the product may become less suitable and the objective will be defeated. Thus, the product life extension has a potential role to play in conservation of resources.

Method # 3. Recycling:

Recycling is a popular and widely practiced method throughout the world by many industrial units. This is a process by which the life of resource is extended by means of recycling it or reusing it as an input or output. This is applicable only to on-energy resources, since the use of a material as an energy resource results in its useless dissipation into the atmosphere.

Industrial wastes and by ­products can be profitably recycled. But, the profit seeking firm will make an attempt to recycle a product only when the cost of recycling is lower than use of “virgin” resource material. Further, the differential cost between recycling and using virgin resource must remain for a fairly long period.

The recycling decisions depend on so many factors such as:

(i) The value of the resource after recycling,

(ii) Reduction in pollution due to the reduction in residuals disposed of directly to the environment, and

(iii) Reduced demand for land for disposal purposes, releasing it for alternative social uses.

On the cost side, the added pollution that may be generated by the process of recycling, particularly when it involves chemical additives to change the product to an acceptable quality for reuse, has to be considered. Thus, the entire decision making process for recycling is a complex one involving costs, not only to the firm, but also some social costs.

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On the technological side also, there are limitations in recycling. The recycled product may be lower in quality and may not be reusable for the same manufacture. Energy expenditure may be high for reclaiming the old product. The recycling process itself may generate pollution. For instance, in paper reuse, bleaches are added to bring back the quality of paper to original level, as seen by the consumer.

This may result in additional pollution due to the bleaching plant. Taking all these into consideration, the scope for recycling may be large in some industries, and in some, it may be much limited. These depend on efficient use of waste and efficient recycling.

It has been estimated by Glassey and Gupta (1971) that USA could have reduced the consumption of wood pulp (virgin) in 1970 from 45 million tons to 28 million tons, had the most efficient use of wastes been made. Since recycling is a costly exercise where costs and benefits have to be assessed, the concept of optimal amount of recycling has to be considered.

Method # 4. Optimum Recycling:

The optimum level of recycling is the point at which the extra cost of recycling does not outweigh the extra benefits. For a private firm, the decision to recycle depends upon the difference between the cost to the firm of using the ‘virgin’ material and the cost of using recycled material.

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This difference (i.e., the latter should be appreciably low) must be a sustained one, as the firm has to make some investments on the recycling plant and incur some recurring expenditure.

If the firm foresees that the cost difference is not very much and situation may reverse in a few years that the cost of virgin material will be less, the firm will not go in for recycling. Further, this depends on whether the firm itself undertakes the work of recycling or is it done by some specialised agencies to whom the work can be entrusted for a sum.

Whatever be the modus operandi and the procedure adopted for recycling, the private firm has the following costs and benefits in recycling. Benefits, (a) The extension brought about in the life of the resource by means of recycling, (b) Reduction in pollution impact, and (c) the reduced demands for land for dumping and infilling, of course, the private decisions ignore social costs and benefits associated with recycling.

Regarding the benefit arising out of the extension in the life of resource, the current benefit may tend to be small unless some other important value is attached. If nations attach much significance to reduce imports from “unstable” nations or from nations likely to impose OPEC-style bargains, these gains have to be valued highly.

Method # 5. Recycling and Pollution Taxes:

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The above analysis of optimum recycling relates to ratios for a given output. It is often said that pollution taxes will be levied to encourage recycling of the resources. We shall make an attempt to integrate the above analysis with pollution taxes.

Method # 6. Waste Reduction:

The problem relating to conservation of resources exhibit in two ways, one to consume or exploit the resources in a minimal way and the other is to avoid or reduce wastage in the process of production. If greater attention is paid to the latter, i.e., waste reduction, it will automatically ensure lesser exploitation of resources.

Waste reduction can be achieved by appropriately redesigning industrial processes, so that there will be technological efficiency in utilizing the resource and avoidance of waste to the minimum.

Further, the waste of one industry can be used as the raw material of another industry. In such a case, marketability of industrial wastes should be explored in the place of recycling. Sugar industry can be cited as an excellent example of either using its own wastes or marketing the waste materials.

The bagasse of the sugar mills (which is a by-product) is sold to paper mills where bagasse is the main raw material for manufacture of papers. Similarly, the molasses, a by-product of the sugar mill is used in the distillery of the mill or sold to some other distilleries.

The press-mud, another by-product is sold to fanners to be used as manure for their fields. The marketing of wastes offers solutions to the problem of externality and at the same time gives scope for earning revenue to the industry.