Waste Financial Value Creation Model: Advancing Sustainable Finance Through Waste-Based Innovation

Abstrak

Budget deficits remain a persistent challenge for local governments, requiring innovative approaches beyond conventional macrofiscal policies. This study proposes a Waste Financial Value Creation Model (WFVCM) as a financial innovation that transforms waste into an economic resource capable of contributing to local government revenue. This study employed a qualitative research design using a phenomenological approach to explore the economic potential of waste and its role in regional financial development. The findings indicate that waste possesses substantial economic value and can be transformed into a sustainable source of regional income when managed using the WFVCM framework. The model demonstrates that waste can generate financial benefits for both local governments and communities while supporting more effective waste management. The WFVCM can be adopted as a practical strategy to increase local revenue, reduce dependence on traditional fiscal instruments, and address budget deficit challenges. This study is limited to qualitative assessments and predictions of waste potential; therefore, it does not provide quantitative estimates of its financial contribution. Further quantitative studies are required to validate and generalize these findings. This study introduces a novel perspective on utilizing waste as a source of regional income, promoting community welfare through waste banks, supporting sustainable waste management, and strengthening the implementation of a circular economy that maximizes resource utilization while reducing environmental burden.