THE TRUTH ABOUT RECYCLING

HOLLY FRETWELLMONTANA STATE UNIVERSITY, ADJUNCT INSTRUCTORPERC, RESEARCH FELLOW

Museum of the Rockies, Harry H.janke board roomJune 20, 2013 (6:30-8pm)

ECNS 594 Current Issues in Economics

Holly L. FretwellNote: Data collection by Dan Benjamin, reused with permission. Reference to PERC PS No 47, 2010. Any errors or omissions are my own.

Available at: PERC.org

- Moral imperative or - resource

conservation?

WHY RECYCLE?

MOBRO 4000 (1987)(AKA, THE GARBAGE BARGE)

Why Recycle?

GARBAGE (RUBBISH/TRASH): A BY-PRODUCT OF PRODUCTION AND CONSUMPTION

- Dump it (landfill)- Burn it (incinerate)- Recycle it (re-use, remanufacture)

RESOURCE OR RUBBISH?Rubbish (waste): an undesirable by-product of production or consumption.

Resource: an item that provides value for use – where the costs of reuse < value added by reuse

Yes (recycle) + Resource

High Transportation

Cost

- if cost > value

Rubbish

Yes (reuse) + Resource

High Labor Cost

If dirty

- if opportunitycost > value

Rubbish

No (hazardous

waste) - Rubbish

Resource or Rubbish?

Fact or Fiction?1. Are we running out of landfill space?2. Is our trash poisoning us?3. Does packaging waste resources?4. Must firms be mandated to decrease packaging?5. Are we are running out of resources? 6. Does recycling save resources? (e.g. recycling paper

saves trees)7. Is recycling beneficial for the environment?8. Do recycling mandates enhance efficiency of resource use?

(e.g., is curbside recycling pick up a low cost method to recycle?)

RECYCLING MYTHS

1. Our trash will bury us.

• Are we running out of landfill space?

1985

1986

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

7,68

3 7,92

4

7,37

9

6,32

6

5,81

2

5,38

6

4,48

2

3,55

8

3,19

7

3,09

1

2,51

4

2,31

4

2,21

6

1,96

7

1,85

8

1,76

71,

754 2,

009

Are We Running Out of Landfill Space?

Nu

mb

er o

f L

and

fill

s

Source: Number of landfills from: http://www.epa.gov/epawaste/basicinfo.htm; National average tipping fees from: http://www.environmentalistseveryday.org/docs/Tipping-Fee-Bulletin-2005.pdf.

N.A. N.A.N.A.

N.A.: Data not available.

Are We Running Out of Landfill Space?

7,68

37,

924

7,37

9

6,32

6

5,81

2

5,38

6

4,48

2

3,55

8

3,19

7

3,09

1

2,51

4

2,31

4

2,21

6

1,96

7

1,85

8

1,76

7

1,75

42,

009$13.30

$17.33

$24.88

$28.58

$34.39

$39.48

$35.43

$36.59

$36.31

$37.20

$31.86

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

198519

8619

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

11

Number of

Landfills

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Average Tipping Fee per

Ton (adjusted for

inflation; real 2005 dollars)

Source: Number of landfills from: http://www.epa.gov/epawaste/basicinfo.htm; National average tipping fees from: http://www.environmentalistseveryday.org/docs/Tipping-Fee-Bulletin-2005.pdf.

N.A. N.A.N.A.

N.A.: Data not available.

RECYCLING MYTHS

1. Our trash will bury us.

2. Our trash will poison us.

• Cancer Risk from 70 year land fill exposure 1 in 10 billion (~1 every 50 years)

• Cancer Risk of 1 in 1 million for: • smoking 1.4 cig/yr• travel 300 mi by car/10 by bike• live 2 days in Boston

1. Our trash will bury us.

2. Our trash will poison us.

3. Packaging wastes resources.

4. Should Firms be mandated to decrease packaging?

Recycling Myths

RECYCLING MYTHS

1. Our trash will bury us.2. Our trash will poison us3. Packaging wastes resources4. Firms must be mandated to decrease packaging5. We’re running out of resources

It’s not the input (metal, oil, gas. . . ) that we want,

rather what it does for us!

RESOURCE OR RUBBISH?http://www.benefits-of-recycling.com/aluminumrecyclingprices.html

Aluminum Recycling Prices / The Stats One of the most common statistics stated about aluminum recycling is that Americans throw away enough aluminum every three months to rebuild the entire national commercial air fleet.

Imagine that amount of wasted resource! This makes it obvious and imperative that recycling saves natural resources. . .

This statement is: True.

False.

Just because you can make something else with the material does not mean it saves resources to re-use it.

It is only a resource if the benefit of re-use is equal to or outweighs the cost at the margin.

RECYCLING MYTHS1. Our trash will bury us.2. Our trash will poison us3. Packaging wastes resources4. We’re running out of resources5. Recycling saves resources and protects the

environment

Does recycling paper saves trees?

RECYCLING MYTHS

1. Our trash will bury us.2. Our trash will poison us3. Packaging wastes resources4. We’re running out of resources5. Recycling saves resources and protects the

environment

6. Do recycling mandates enhance efficiency of resource use? (e.g., is curbside recycling pick up a low cost method to recycle?)

Bozeman Daily Chronicle July 17, 2011

WHEN DOES RECYCLING MAKE SENSE?-Commercial level-When uses less energy & raw materials than primary manufacturing

- Firms will realize the cost saving-Where MSB ≥ MSC

RUBBISH OR RESOURCE?Rubbish (waste): an undesirable by-product of production or consumption.

Resource: an item that provides value for use – where the costs of reuse < value added by reuse.

economically speaking: where MSC ≤ MSB

WHY DO YOU RECYCLE . . . OR DO YOU?

Fretwell