1. Waste Management and Remediation Services Sector Paper Presentation 27 th Meeting of the Voorburg Group Warsaw, Poland John B. Murphy Assistant Division Chief for Classification Activities U.S. Census Bureau

2. Overview Sources Overview of Market Classification Turnover Prices Next Steps 2

3. Sources Turnover/Output Mini-presentations Johan Ahman – Statistics Sweden John Murphy – United States Census Prices Mini-presentations Denis Gac – INSEE, France Aspasia Papa – Office for National Statistics, United Kingdom Yeonsuk Park - Bank of Korea Discussant Comments Steve Drew - Office for National Statistics, United Kingdom Country Progress Reports 2011-2012 3

4. Overview of Market Combination of public and private providers - large providers (public or private) dominate some industries - many small providers in other industries Different practices by industry – hard to generalize within the sector or between countries Mix of goods, services, and residuals Generally growing in nominal terms 4

5. Overview of Market Market Size CountryUnits EmploymentTurnover USA43,068643,026≈€ 63 billion* Sweden 965 12,815 ≈€ 3 billion France 6,186 84,840 ≈€ 22 billion * USA units and turnover exclude government operations, employment includes government, conversion rate €1.00 = $1.25 USD 5

6. Industry Classification Industry Classifications Reviewed ISIC Rev. 4 6 industries NACE Rev. 2.0 8 industries JSIC17 industries ANZSIC 2006 5 industries NAICS United States 10 industries 6

7. Industry Classification Content similar, arrangement and organization differs For example: Septic tank services – ISIC sewerage, NAICS other waste management services, JSIC domestic waste disposal Aggregations for solid waste collection vs. solid waste treatment and disposal for ISIC, NACE, NAICS and ANZSIC JSIC broken down by domestic vs. industrial ISIC includes NACE includes class for dismantling or wrecks, JSIC includes an industry for dead domestic animal disposal services Overall, differences do make it hard to compare data with ISIC below the level of 37+38+39 for many countries 7

8. Product Classification CPC Ver. 2.0 28 subclasses CPA 2008 68 subclasses ANZSPC 9 products NAPCS128 products Differences in the content and focus of products 8

9. Classifications Findings Product - Different approaches - CPC focus on services only (in division 94) - CPA has services and “tangibles” - NAPCS focus on services – more detailed Products vs. Waste/Residuals (as defined in the SEEA): positive value = product no or negative value = residual 9

10. Turnover Data Availability Source: Voorburg Country Reports 2011 (23 reports), 2012 (21 reports) 10 Turnover 2011Soon2012 3700 - Sewerage20 17 3811 - Collection of Nonhazardous Waste19 3812 - Collection of Hazardous Waste20 18 3821 - Treatment and Disposal of Nonhazardous Waste20 18 3822 - Treatment and Disposal of Hazardous Waste20 18 3830 - Materials Recovery19 17 3900 - Remediation Activities17 16

11. Turnover Measure turnover by industry or by product? – Private and public activity – Substantial overlap in services provided across industries Sources of Revenue – Fees for service – Tax expenditures, PPP, etc. – Revenue for products produced (e.g., electricity generated from a trash incinerator, methane gas from a landfill) Unit to be Measured – Services rendered – What about the value of recyclable materials and residuals? – Expenses when covered by general tax revenues rather than direct revenue streams related to the services (not pay as you throw)? Are growth trends real or substitution from government to private services? 11

12. Turnover Best Practices 1.Cover both private and public activity 2.Industry and product turnover using census or sample 3.Delineate intermediate and final demand components 12

13. SPPI Data Availability Source: Voorburg Country Reports 2011 (23 reports), 2012 (21 reports) 13 Prices 2011Soon2012 3700 - Sewerage785 3811 - Collection of Nonhazardous Waste998 3812 - Collection of Hazardous Waste553 3821 - Treatment and Disposal of Nonhazardous Waste665 3822 - Treatment and Disposal of Hazardous Waste664 3830 - Materials Recovery445 3900 - Remediation Activities331

14. SPPI Sources of Data Various sources reported – Local governments – Private providers – Trade associations Types of prices reported (services) – Fees for repeat services – actual transaction prices – Contract prices – Price of collection hour (no direct transaction only expenses) 14

15. SPPI Best Practices 1.Pay attention to quality – quantities may or may not be price determining, changes in collection frequency, regulatory changes 2.Ensure that method used is appropriate if also used to proxy non-observable transactions (service from general taxes) 3.Care must be taken to match weights and prices coverage 4.Capture and price other outputs? (e.g., electricity, compost, methane) 15

16. Waste Management Activities Future Review at lower levels, heterogeneous industries Clarify definitions of products (products vs. residuals?) Clarify scope – services are in scope, but tangible products (recyclable materials or new inputs, power, heat, methane, compost) ? 16

17. Conclusion Waste management covers multiple industries and multiple processes Turnover and pricing are more straight forward for private providers B2B generally has more private than public activity Hard to define best practices – dependent on national market operation 17

18. Questions? John Murphy Assistant Division Chief for Classification Activities U.S. Census Bureau john.burns.murphy@census.gov (301) 763-5172 18