Market imperfections in recycling markets: conceptual issues and empirical study of price volatility in plastics

The effectiveness of recycling depends upon efficient functioning of secondary material markets. This paper focus on the role that price volatility can play in slowing investment and market development. However, a statistical analysis of the relative volatility of secondary and primary material prices does not confirm the widely-held belief that relative price volatility is higher in secondary than in primary materials, at least at national levels.An econometric estimation of the determinants of plastic recovery volumes in Seattle contributes to the literature in four ways: the use of monthly (as opposed to annual) data; the use of local (as opposed to national) data; the use of an explanatory variable to reflect price volatility; and, the focus on plastics, which have not been examined previously. Some tentative conclusions can be made: the results generally support the principal hypothesis that price volatility has a negative effect on recovery of secondary materials; in addition, and consistent with previous studies, price elasticities are low and insignificant; and finally, policy factors are clearly important. The concluding section treats the economic and policy implications of market inefficiency in secondary material markets.     

Life cycle assessment of waste paper management: The importance of technology data and system boundaries in assessing recycling and incineration

The significance of technical data, as well as the significance of system boundary choices, when modelling the environmental impact from recycling and incineration of waste paper has been studied by a life cycle assessment focusing on global warming potentials. The consequence of choosing a specific set of data for the reprocessing technology, the virgin paper manufacturing technology and the incineration technology, as well as the importance of the recycling rate was studied. Furthermore, the system was expanded to include forestry and to include fossil fuel energy substitution from saved biomass, in order to study the importance of the system boundary choices. For recycling, the choice of virgin paper manufacturing data is most important, but the results show that also the impacts from the reprocessing technologies fluctuate greatly. For the overall results the choice of the technology data is of importance when comparing recycling including virgin paper substitution with incineration including energy substitution. Combining an environmentally high or low performing recycling technology with an environmentally high or low performing incineration technology can give quite different results. The modelling showed that recycling of paper, from a life cycle point of view, is environmentally equal or better than incineration with energy recovery only when the recycling technology is at a high environmental performance level. However, the modelling also showed that expanding the system to include substitution of fossil fuel energy by production of energy from the saved biomass associated with recycling will give a completely different result. In this case recycling is always more beneficial than incineration, thus increased recycling is desirable. Expanding the system to include forestry was shown to have a minor effect on the results. As assessments are often performed with a set choice of data and a set recycling rate, it is questionable how useful the results from this kind of LCA are for a policy maker. The high significance of the system boundary choices stresses the importance of scientific discussion on how to best address system analysis of recycling, for paper and other recyclable materials.     

Investigating the sustainability of the global silver supply,reserves, stocks in society and market price using different approaches

The authors have collected data for the silver market, shedding light on market size, stocks in society and silver flows in society. The world supply from mining, depletion of the remaining reserves, reducing ore grades, market price and turnover of silver was simulated using the SILVER model developed for this study. The model combines mining, trade markets, price mechanisms, populations dynamics, use in society and waste and recycling into an integrated system. At the same time the degree of sustainability and resource time horizon was estimated using different methods such as: 1: burn-off rates, 2: peak discovery early warning, 3: Hubbert's production model, and 4: System dynamic modelling. The Hubbert's model was run for the period of 6000 BC–3000 AD, the SILVER system dynamics model was run for the time range 1840–2340. We have estimated that the ultimately recoverable reserves of silver are in the range 2.7–3.1 million tonne silver at present, of which approximately 1.35–1.46 million tonne have already been mined. The timing estimate range for peak silver production is narrow, in the range 2027–2038, with the best estimate in 2034. By 2240, all silver mines will be nearly empty and exhausted. The outputs from all models converge to emphasize the importance of consistent recycling and the avoidance of irreversible losses to make society more sustainable with respect to silver market supply.     

Non-linear incentives,plan design,and flood mitigation: the case of the Federal Emergency Management Agency's community rating system

A basic proposition of ‘agency theory’ is that output-based performance incentives encourage greater effort. However, studies find that incentive schemes can distort effort if rewards for performance are discrete or non-linear. The Federal Emergency Management Agency's (FEMA) Community Rating System (CRS) is a flood mitigation programme with a non-linear incentive design. Under this programme, localities are incentivised to implement a mix of 18 flood mitigation activities. Each activity is performance scored, with accumulated scores corresponding to a percent discount on flood insurance premiums for residents that hold National Flood Insurance policies. Discounts range from 0 to 45% and increase discretely in increments of 5%. With multivariate statistical and Geographic Information Systems analytic techniques, tests are made to find whether observed changes in annual CRS scores for participating localities in Florida are explained by non-linear incentives, adjusting for hydrologic conditions, flood disaster histories, socio-economic and human capital controls that can plausibly account for local mitigation activity scores over time. Results indicate that local jurisdictions are discount-seeking, with mitigation efforts partially driven by the non-linear incentive design of the CRS programme. The paper ends with recommendations to improve the operation FEMA's flood mitigation programme.     

Spatial cost efficiency in waste paper handling: the case of corrugated board in Sweden

This paper analyzes the spatial cost efficiency of the Swedish legislation regarding waste disposal handling. We focus on the case of corrugated board and recognize that the different counties in Sweden possess different economic prerequisites in terms of waste paper recovery and utilization potential. We employ data for six corrugated board mills and 20 counties and a non-linear programming model to identify the least cost strategy for reaching the politically specified recycling target of a 65% recovery rate for corrugated board. That is, the total costs of recovering a minimum of 65% in each county are calculated and compared with the case when the country as a whole recovers 65% of all old corrugated board is collected but there exist no uniform target for each county. The conclusion is that from an efficiency point of view the recovery efforts should be concentrated to the highly populated and urbanized counties, and not be uniformly divided throughout the country. In the base case, the results suggest that the cost efficient county-specific recovery rates should range from 51 to 72%.     

Air pollution control by economic incentives in the U.S.: Policy,problems, and progress

This paper deals with cost-effectiveness of the economic incentive policies of the bubble concept and offset credits relative to the policy of direct regulations of air emissions. The second section discusses single- and multi-plant bubbles, their adoption across regions and industries, the methods used to control emissions and the extent of savings in costs. We conclude that despite the delay resulting from duplication of review of state implementation plans by both the state and the Environmental Protection Agency, the required technological commands, the requirement to model air quality and the restrictions to permit bubbling only in the attainment areas, the policy is progressing successfully and should be encouraged by eliminating the restrictions. The third section analyzes the policy of emission offset credit, trading, and banking which can permit economic growth in nonattainment areas. It reviews the available literature, which deals only with aggregation of offsets across cities instead of individual offset trades. Progress by individual offset trades is analyzed in terms of the number of offsets, their acceptance across regions, the extent of reductions in emissions, and the classification of the offsets into internal and external trades. Comparison of estimated capital costs and prices of individual offsets with direct regulation costs reveals that the former are economical. We conclude that despite the problems of high tradeoff ratios, the short and uncertain life of the emission offset credits and the technological commands, the policy is progressing successfully and should be encouraged further by relaxing restrictions.This paper represents the author's personal views. Neither the Commission nor any member of its staff is in any way responsible for these views.     

Identifying the key factors in increasing recycling and reducing residual household waste: a case study of the Flemish region of Belgium

The competent waste authority in the Flemish region of Belgium created the 'Implementation plan household waste 2003-2007' and the 'Implementation plan sustainable management 2010-2015' to comply with EU regulation. It incorporates European and regional requirements and describes strategies, goals, actions and instruments for the collection and treatment of household waste. The central mandatory goal is to reduce and maintain the amount of residual household waste to 150 kg per capita per year between 2010-2015. In literature, a reasonable body of information has been published on the effectiveness and efficiency of a variety of policy instruments, but the information is complex, often contradictory and difficult to interpret. The objective of this paper is to identify, through the development of a binary logistic regression model, those variables of the waste collection scheme that help municipalities to reach the mandatory 150 kg goal. The model covers a number of variables for household characteristics, provision of recycling services, frequency of waste collection and charging for waste services. This paper, however, is not about waste prevention and reuse. The dataset originates from 2003. Four out of 12 variables in the model contributed significantly: income per capita, cost of residual waste collection, collection frequency and separate curbside collection of organic waste.     

Junk-buyers as the linkage between waste sources and redemption depots in urban China: the case of Wuhan

This paper locates junk-buyers in the recycling chain that includes waste source, collection system and end-user. With increasing needs of convenience for recycling at waste sources but disappearing redemption depots in city blocks of China, junk-buyers play a role of linkage between waste sources and redemption depots. It is these door-to-door collectors who make the general public aware of cash value inside recyclable waste. Also, the motivation of getting cash back pushes junk-buyers become immediate suppliers to redemption depots. Without junk-buyers as door-to-door collectors, the current waste recovery system in post-Mao's China would brake down. However, as in other developing countries, the junk-buyer occupation in urban China currently is typically driven by economic incentives, and the door-to-door collection of recyclable waste completely falls into junk-buyer individual business. It is difficult for junk-buyers who mainly come from the countryside to establish stable relations with waste sources for lack of recognition from urban society. The appropriate allocation of individual time and space becomes crucial to conducting the door-to-door activities so as to collecting more recyclables. While the collecting territory as the condition of production is positively reflected by the usual extent of the collecting distance, junk-buyers mostly spend time in finding sellers instead of simply expanding their collecting territory. This is a typical example of the cheapest and lowest skilled labor forces being in relatively unlimited supply in a developing country.     

Present status of the recycling of waste electrical and electronic equipment in Korea

In Korea due to rapid economical growth followed by urbanisation, breakage of large traditional families into small nuclear families, continuous changes in equipment features and capabilities causes tremendous increase in sale of new electrical and electronic equipment (EEE) and decrease in sale of used EEE. Subsequently, the ever-increasing quantity of waste electrical and electronic equipment (WEEE) has become a serious social problem and threat to the environment. Therefore, the gradual increase in the generation of WEEE intensifies the interest for recycling to conserve the resources and protect the environment. In view of the above, a review has been made related to the present status of the recycling of waste electrical and electronic equipment in Korea. This paper describes the present status of generation and recycling of waste electrical and electronic equipment, namely TVs, refrigerators, washing machines, air conditioners, personal computers and mobile phones in Korea. The commercial processes and the status of developing new technologies for the recycling of metallic values from waste printed circuit boards (PCBs) is also described briefly. Since 1998, three recycling centers are in full operation to recycle WEEE such as refrigerators, washing machines and air conditioners, having the total capacity of 880,000 units/year. All waste TVs are recently recycled on commission basis by several private recycling plants. The recycling of waste personal computers and mobile phones is insignificant in comparison with the amount of estimated obsolete those. Korea has adopted and enforced the extended producer responsibility (EPR) system. Korea is making consistent efforts to improve the recycling rate to the standards indicated in the EU directives for WEEE. Especially environmentally friendly and energy-saving technologies are being developed to recycle metal values from PCBs of WEEE.     

The crude oil market and the gold market: Evidence for cointegration,causality and price discovery

Given that the gold market and the crude oil market are the main representatives of the large commodity markets, it is of crucial practical significance to analyze their cointegration relationship and causality, and investigate their respective contribution, from the perspective of price discovery, to the common price trend so as to interpret the dynamics of the whole large commodity market and forecast the fluctuation of crude oil and gold prices.     

Emotions,habits and rational choices in ecological behaviours: The case of recycling and use of public transportation

Two field studies examined the role of attitudes, subjective norms, perceived control, anticipated emotions, past behaviour and desire in the prediction of pro-environmental behavioural intention. The model of goal-directed behaviour (MGB) was applied to predict intentions to use public transportation instead of the private car for going to work (Study 1, N=180), and to recycle household waste (Study 2, N=154). Multiple regression and structural equation modeling were used to test the hypotheses in studies 1 and 2, respectively. As expected, results of the two studies indicate that negative anticipated emotions and past behaviour are significant predictors of desire to engage in pro-environmental action. Desire, in turn, positively predicts pro-environmental behavioural intentions. A direct link between past behaviour and intentions was also detected. Implications of the results for the promotion of pro-environmental behaviour are discussed.     

Sound management of brominated flame retarded (BFR) plastics from electronic wastes: State of the art and options in Nigeria

Management of flame retarded plastics from waste electrical and electronic equipment (WEEE) has been posing a major challenge to waste management experts because of the potential environmental contamination issues especially the formation of polybrominated-dioxins and -furans (PBDD/F) during processing. In Nigeria, large quantities of electronic waste (e-waste) are currently being managed—a significant quantity of which is imported illegally as secondhand electronics. As much as 75% of these illegal imports are never reused but are rather discarded. These waste electronic devices are mostly older equipment that contains brominated flame retardants (BFRs) such as penta-brominated diphenyl ethers (PBDEs), and polybrominated biphenyls (PBBs) which are presently banned in Europe under the EU WEEE and RoHS Directives. Risk assessment studies found both to be persistent, bio-accumulative and toxic. The present management practices for waste plastics from WEEE in Nigeria, such as open burning and disposal at open dumps, creates potential for serious environmental pollution. This paper reviews the options in the environmentally sound management of waste plastics from electronic wastes. Options available include mechanical recycling, reprocessing into chemicals (chemical feedstock recycling) and energy recovery. The Creasolv^® and Centrevap^® processes, which are the outcome of the extensive research at achieving sound management of waste plastics from WEEE in Europe, are also reviewed. These are solvent-based methods of removing BFRs and they presently offer the best commercial and environmental option in the sound management of waste BFR-containing plastics. Because these developments have not been commercialized, WEEE and WEEE plastics are still being exported to developing countries. The industrial application of these processes and the development of eco-friendlier alternative flame retardants will help assure sound management of WEEE plastics.     

A system dynamics model for evaluating the alternative of type in construction and demolition waste recycling center - The case of Chongqing, China

This paper presents a system dynamics computer model to evaluate alternative type of recycling center under different policy and economy environments through comparison on the economic feasibility of recycling centers and ratio of savings to costs in C&D waste management. A case study for the City of Chongqing, China is selected. Simulated results show three key factors can contribute to the economic feasibility of recycling and the ratio of savings to costs in C&D waste management: (a) profit; (b) unit recycling cost; (c) extra revenue from location advantage (It was assumed that the mobile centers can attain extra revenue from the location advantage compared with fixed recycling centers). The sensitive analysis and comparison on ratios between public and private sector indicate that to achieve the optimum ratio of savings to costs, design of recycling centers and selection of governmental instruments are determined by the priority list: (1) low extra revenue from location advantage; (2) low profit; (3) low unit recycling cost. Meanwhile, the fluctuation of the three factors must be prior to achieve economic feasibility of corresponding recycling centers.     

Moving up the waste hierarchy: Car boot sales,reuse exchange and the challenges of consumer culture to waste prevention

Moving up the waste hierarchy is a key priority for UK waste policy. Waste prevention requires policy interventions to promote reuse. The term ‘reuse exchange’ has been adopted by UK policy makers to describe a variety of second-hand trading outlets including car boot sales, charity shops and online exchange sites. As waste policy is based on tonnage diverted from disposal (or landfill), policy interventions to promote reuse exchange will be based on the weight of goods estimated to be flowing through these sites. This paper uses a combination of field survey data and scale-up estimation to quantify and characterise the weight of goods exchanged at car boot sales in England in 2012. This is estimated at 50–60 000 tonnes per annum. The paper emphasises that movement up the waste hierarchy brings waste policy into closer contact with household consumption practices. It draws on qualitative research to show that, for participants, car boot sales are not associated with waste prevention. Instead, car boot sales rely on stocks of surplus household goods and exemplify the culture of thrift, which enables more, not less, consumption. The paper shows the collision between the social values that inform thrift and the environmental values that underpin reuse; and it argues that the policy goal of enhanced recovery for reuse might best be achieved by working with consumer culture. Two ways of achieving this are suggested: interventions that make it easier for consumers to do the right thing, through promoting opportunities for the circulation of stocks of surplus goods, for example, through increasing the frequency of car boot sales; and interventions which recognise that car boot sales also generate waste, which could be recovered for reuse.     

The Impact of Policy and Institutional Environment on Costs and Benefits of Sustainable Agricultural Land Uses: The Case of the Chittagong Hill Tracts,Bangladesh

As in other mountain regions of Asia, agricultural lands in the Chittagong Hill Tracts (CHT) of Bangladesh are undergoing degradation due primarily to environmentally incompatible land-use systems such as shifting cultivation (jhum) and annual cash crops. The suitable land-use systems such as agroforestry and timber tree plantation provide benefit to the society at large, but they might not provide attractive economic benefits to farmers, eventually constraining a wide-scale adoption of such land-use systems. Therefore, it is essential to evaluate agricultural land-use systems from both societal and private perspectives in the pursuit of promoting particularly environmentally sustainable systems. This article evaluated five major land-use systems being practiced in CHT, namely jhum, annual cash crops, horticulture, agroforestry, and timber plantation. The results of the financial analysis revealed the annual cash crops as the most attractive land use and jhum as the least attractive of the five land-use systems considered under the study. Horticulture, timber plantation, and agroforestry, considered to be suitable land-use systems particularly for mountainous areas, held the middle ground between these two systems. Annual cash crops provided the highest financial return at the cost of a very high rate of soil erosion. When the societal cost of soil erosion is considered, annual cash crops appear to be the most costly land-use system, followed by jhum and horticulture. Although financially less attractive compared to annual cash crops and horticulture, agroforestry and timber plantation are the socially most beneficial land-use systems. Findings of the alternative policy analyses indicate that there is a good prospect for making environmentally sustainable land-use systems, such as agroforestry and timber plantation, attractive for the farmers by eliminating existing legal and institutional barriers, combined with the provision of necessary support services and facilities.