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Research Article: Estimating the Value of a State's Waste Stream

Published online by Cambridge University Press:  13 July 2009

Cynthia Fridgen ,
Howard Haas  and
Peter Kakela
Cynthia Fridgen*
Affiliation:
Resource Development Department, Michigan State University, East Lansing
Howard Haas
Affiliation:
Economics Department, Michigan State University, East Lansing
Peter Kakela
Affiliation:
Resource Development Department, Michigan State University, East Lansing
*
Chairperson, Resource Development Department, Michigan State University, East Lansing, MI 48824; (fax) 517-353-8994; (e-mail) fridgenc@pilot.msu.edu
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Abstract

In our modern society, waste has become a necessary evil. And like sewage treatment, waste removal costs money. Fortunately, some waste materials are recycled. This paper identifies the economic value of removing and recycling waste materials. A statelevel model was developed, using Michigan data for the demonstration case. Specific volumes of some 14 major components of the waste stream as well as nine separate high-value recycled commodities were identified. Monetary values were derived for total waste removal and the high-value recycled materials. Michigan's waste stream was found to have an economic value of $1.73 billion per year, which equals $180/person/year. Of this total, municipal waste collection accounted for $1.07 billion per year and the high-value recycled materials accounted for the other $0.65 billion.

Type
Features & Reviews
Information
Environmental Practice , Volume 1 , Issue 4 , December 1999 , pp. 247 - 254
Copyright
Copyright © National Association of Environmental Professionals 1999

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References

Notes

1. This research project is part of a larger effort to evaluate Michigan's natural resource industries under the “Status and Potential of Michigan's Natural Resources” (SAPMINR) program sponsored by Michigan State University's Agricultural Experiment Station. Its focus is to identify and evaluate the economic contribution of the raw material from which Michigan ultimately benefits. The report examines the revenues generated by the collection and use of Michigan's solid waste resources. It deals with solid waste as the first step in the value-added process-a source of employment and a source of collected or recycled raw material in Michigan.

2. “Characterizations of Municipal Solid Waste in the United States,” 1996Google Scholar Update, Prepared for the U.S. E.P.A., Municipal and Industrial Solid Waste Division Office of Solid Waste, Report No. EPA-A530-R-97-015, Washington, D.C., 1997, p. 12.168 pages.

3. Philips, S., 1998, personal communication, 6 10Google Scholar, Chief of the Solid Waste Management Unit.

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8. That is, based on the EPA's figure for the national MSW per capita average, an MSW calculation is made for Michigan based on Michigan's population.

9. Robert J., Garino, 1997, “Commodity Markets; 1996–19972 A Wrap-Up and Midyear Outlook,” Scrap (Publication of the Institute of Scrap Recycling Industries, Washington, D.C.) 05/06.Google Scholar

10. Heidi, Ridgley, 1997, “The Markets Page,” “Waste Age's Recycling Times, 8 12, p. 8.Google Scholar

11. Based on industry utilization rates of recycled aluminum presented by Garino (1997).

12. Note that MSW refers to the municipal solid waste stream definition used by the EPA and thus does not include automotive scrap, construction scrap, or demolition debris in its totals.

13. “Characterizations of Municipal Solid Waste in the United States,” 1995Google Scholar Update, Prepared for the U.S. E.P.A., Municipal and Industrial Solid Waste Division Office of Solid Waste, Report No. EPA-A530-R-96-015, Washington, DC., 1996, p. 22.

14. The EPA estimate is based on national figures and does not take into account the effect of beverage container deposit laws. Michigan is one of only 10 states with such a statute. It is assumed that the EPA numbers are not representative of Michigan's actual recycling rates with regard to aluminum beverage containers.

15. “Characterizations,” 1995 Update.Google Scholar

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