Economic Value of Solid Waste Recyclables

This indicator tracks the lost market value of recyclable materials when disposed in landfills and incinerators instead of recycled. This is done by applying commodity prices to estimates of recyclable material disposed.

The generation of solid waste imposes real costs to Washington's economy and society. Many of the materials disposed as garbage are recyclable, representing lost embodied energy and natural resources. When recyclable materials are recycled into new products instead of buried in landfills or burned in incinerators, disposal costs are reduced and our economic vitality increases.

Recyclable materials included in this analysis are discards from homes and businesses that, if collected for recycling, would have value in the market. These include paper, cardboard, metals, plastics, glass, and electronics. This indicator does not include the costs of disposing or handling of the recyclable materials; just the average market value. Determining the "lost value of recyclables" gives us a measure of economic vitality, by showing how much money we are 'throwing away.'

View data: Economic Value of Solid Waste Recyclables Disposed in Washington.xls

From 2003 to 2008, the lost value of recyclables increased from $182 million to $320 million, due to price increases of recyclables being disposed. The increase in value from 2007 to 2008 is $54 million. Though the overall amount of disposed waste decreased in 2008, the prices paid for recyclable materials increased, resulting in an overall increase in the economic value of those disposed materials. Due to the recession, the end of 2008 saw a significant decrease in market values, but the average values for the entire year are still greater than previous years. Since 2003, we have lost more than 1.4 billion dollars worth of recyclable materials by burying them in landfills.

The percent of selected recyclable materials disposed in landfills or incinerators is based on our waste characterization studies. The 2003-2007 numbers use 31 percent based on the 2003 study (Waste Composition Analysis for the State of Washington: 2003). The 2008 numbers use 27 percent from the 2009 study (2009 Washington Statewide Waste Characterization Study). This decrease represents over 275,000 fewer tons of the selected recyclables going to landfills for 2008.

There is an overall upward trend in this indicator, though from 2005 to 2006, there is a slight decrease in the value of recyclables disposed. This decrease is due to lower prices for paper and plastic in that time period, even though the overall amount of disposed material increased.

Why should we be concerned about the lost economic value of solid waste recyclables disposed in landfills?

Disposed recyclables represent an avoidable cost to the economy and a lost opportunity. Society incurs direct costs to manage and dispose of wastes. Instead of paying to dispose of these useful materials, we could, in many cases, pay less to recycle them if they were separated from the garbage. This would also create additional jobs.

Disposed recyclables also represent wasted energy and resources embodied in the materials. Money is spent on goods and services that may have provided a benefit in their useful life, but ultimately end up as an environmental and economic cost.

As Beyond Waste goals begin to affect our state's waste generation, this indicator will show the link between Beyond Waste actions and economic vitality.