The economics of recycling
March 17, 2023
Implementing successful recycling programs begins first by understanding the economics of recycling, including identifying the costs associated with collecting, sorting and marketing recyclables.
Almost all products and packages can be technically recycled (with some level of R&D and/or design investment), but most are not, and instead are sent to landfill or incineration. Currently—with some exceptions—only four types of waste are commonly recycled: clear glass, uncoated paper, certain rigid plastics and certain metals.
The main driver of recycling programs is whether it is cheaper to produce new products and packaging from virgin materials or recycled materials. In the case of making new glass, paper and other generally recycled items, it is cheaper to use recycled materials than virgin materials. In other words, it is cheaper to collect, sort and recycle those waste streams than it is to extract and manufacture virgin materials.
Most other kinds of waste, such as pens, toothbrushes, candy wrappers, cigarette butts and coffee cartridges are rarely recycled, largely because collecting, sorting and recycling is more expensive than manufacturing replacement products from virgin materials. As a result, these wastes are principally sent to landfill or incineration.
Knowing these costs allows decision-makers to create a program that will generate enough revenue to cover the expenses of running it. These costs can vary depending on the location, but may include collecting, sorting and selling the recyclables. Additionally, there may be additional costs associated with developing a marketing plan, finding buyers for the materials or renting equipment.
Additionally, understanding the local market for recycled materials can help inform which materials should be targeted for recycling. Once these considerations have been taken into account, an effective program must be implemented that reflects the availability of resources in a given region and the needs of its citizens. This includes creating infrastructure such as bins, collection points and sorting centers, along with appropriate signage and promotional campaigns to ensure wide-spread participation. Finally, regular monitoring of the program’s success is essential in ensuring it remains on track to meet its goals. By taking all these steps into account, cities and towns across the world can create successful recycling programs that have long-lasting impacts on their communities.
Once the economics of recycling are understood, relevant stakeholders—such as government agencies, businesses and citizens—can determine what types of materials should be collected at what levels and how to best manage them in order to achieve their desired outcomes. This includes understanding which collection techniques are most cost effective (i.e., curbside, drop-off or buy-back centers) and how the materials should be sorted for the greatest efficiency and highest market value. It also includes understanding the best ways to educate citizens about the recycling process so they can participate in a successful program.
Policy also plays a key role in incentivizing positive behaviors. Thanks to long-standing EU policies, including the Landfill Directive and Packaging Waste Directive, European countries have already begun moving away from landfilling and incineration towards recycling. This has created important infrastructure for collection, sorting and downstream markets for recycled materials. As part of its Green Deal, the European Commission has also proposed revised EU rules to reduce packaging, and make it fully recyclable by 2030. Separately, a recently proposed Regulation on Critical Raw Materials seeks to implement a 15% target of strategic raw materials coming from EU recycling programs.
Ultimately, addressing these economic drivers of recycling is essential to successfully developing sustainable waste management operations. By understanding what types of materials are more easily recycled than others, businesses can focus their efforts on optimizing collection and recovery of those materials while reducing costs associated with sorting and disposal of non-recyclable items. It is also important to keep track of changing markets for recyclables because as market conditions change over time, so too must recycling strategies. With the right strategies in place, businesses and governments can create successful recycling programs that are both economically and environmentally sustainable.
In addition to understanding the economics of recycling, there are other important factors which include long-term sustainability goals, setting up efficient collection networks and educating consumers on how to recycle properly. A clearly communicated mission with achievable objectives is essential when developing any successful recycling program. This can be achieved through effective communication campaigns that explain what materials need to be recycled and how they should be sorted or recycled.
It is also important to consider how the recycling process impacts local job opportunities. Recycling operations often require additional labor for sorting or reprocessing materials which can create employment in otherwise difficult economic times. By providing these employment opportunities, businesses and governments can support local economies while reducing the burden on landfills and helping to protect the environment.
Ultimately, any successful recycling program must take into account both economic and environmental considerations in order to achieve its desired goals. Understanding the economics of recycling is essential for developing effective strategies that will ensure long-term sustainability. Additionally, businesses and governments must also consider key factors such as setting up efficient collection networks and educating consumers on how to properly recycle materials. By taking all of these elements into account, cities and towns around the world can create successful recycling programs that improve the environment and benefit local economies.
CPM
