Modeling Tradeoff in Ship Breaking Industry Considering Sustainability Aspects: A System Dynamics Approach

Ship breaking industry provides incentives for developing countries. Thus, it presents economic catalyst for the country. On the other hand, ship-breaking activity contributes hazardous material that result ecological imbalance for the exposure area. Moreover, ship-breaking process by any standard is dangerous occupation because intoxication by dangerous substances and accident that happened on the plots. In the light of these, economics benefit and social-environmental loss regarding to ship-breaking industry is debatable. This study observes the tradeoff between loss and benefit of ship breaking industry. A model for ship breaking industry considering economics, environmental and social issue was constructed using System Dynamic. Proposed model captures the variable sensitivity while each variable is interacting with another. The result can be considered on regulation and policy implementation regarding to ship-breaking and its aspects, specifically in developing countries.