Evaluating the economic and ecological effects of investment projects: A new model and its application to smartphone manufacturing in Europe

  • Received October 22, 2021;
    Accepted November 23, 2021;
    Published November 30, 2021
  • Author(s)
  • DOI
  • Article Info
    Volume 18 2021, Issue #4, pp. 252-265
  • Cited by
    5 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Despite market volatility in 2020 due to the COVID-19 pandemic and a decline in global investment flows to 2005 levels, sustainable development funds continued to grow. These data indicate a change in development vectors: now leading investors are guided by technologies for sustainable growth. The purpose of this paper is to determine the optimal model for evaluating investment projects in terms of their economic and environmental effects on the development of the region. The proposed technique is being tested for an investment project aimed at developing the production of mobile phones in Europe. As shown, the analysis of the location of the production of smartphones in Europe for subsequent implementation in the European market has a number of advantages and is more beneficial in terms of environmental and economic effects for the region. First, from an economic point of view, this leads to an increase in the volume of attracted investments, a decrease in operating costs for international logistics, the creation of new jobs and qualifications for the population. In addition, it is important to be able to actively implement circular business models that will reuse lithium-ion phone batteries, which will lead to a decrease in the need for cobalt as a raw material, as well as lead to an increase in the level of recycling of e-waste and the circularity of the European economy. Also, such investment projects open up great opportunities for manufacturers from a marketing point of view, creating bonuses for a positive image and preferences for a “local green producer”.

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    • Figure 1. Key stages in preparing of an investment model using environmental indicators
    • Figure 2. The structure and dynamics of the capacity of the mobile phone market in the EU (27)
    • Figure 3. Sales of mobile phones per capita in the EU (27)
    • Figure 4. Carbon footprint of the smartphone market in the EU (27)
    • Figure 5. Cobalt imports by China for the period 2002–2020 (ths t)
    • Table 1. Matrix of economic and green impact effects
    • Table 2. Comparative matrix of economic and green impact effects
    • Table A1. Key indices of the development of the mobile phone market in the EU
    • Conceptualization
      Viktoriia Apalkova, Sergiy Tsyganov, Nadiia Tsyganova
    • Data curation
      Viktoriia Apalkova, Nataliia Meshko
    • Formal Analysis
      Viktoriia Apalkova, Sergiy Tsyganov, Nataliia Meshko, Nadiia Tsyganova
    • Investigation
      Viktoriia Apalkova, Nataliia Meshko
    • Funding acquisition
      Viktoriia Apalkova, Sergiy Tsyganov, Tetiana Chernytska, Nataliia Meshko, Nadiia Tsyganova
    • Methodology
      Viktoriia Apalkova, Sergiy Tsyganov, Nadiia Tsyganova
    • Project administration
      Viktoriia Apalkova, Sergiy Tsyganov
    • Resources
      Viktoriia Apalkova, Tetiana Chernytska
    • Software
      Viktoriia Apalkova, Tetiana Chernytska
    • Supervision
      Viktoriia Apalkova, Sergiy Tsyganov, Nadiia Tsyganova
    • Validation
      Viktoriia Apalkova, Nataliia Meshko
    • Visualization
      Viktoriia Apalkova, Tetiana Chernytska
    • Writing – original draft
      Viktoriia Apalkova, Tetiana Chernytska
    • Writing – review & editing
      Sergiy Tsyganov