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Published byDiana Parsons Modified over 8 years ago
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Recovery of C&D waste Changing under different economic constraints
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EU: differences in GDP / cap ~€ 7.500-10.000 –Bulgaria, Poland, Hungary 10.000-17.000 –Lithuania, Czech Rep., Latvia, Portugal, Greece, Cyprus, Slovenia 17.000-21.000 –Spain, Italy, Germany, Estonia 22.000-30.000 –Belgium, France, Austria, UK, Netherlands, Sweden, Denmark, Ireland, + Luxemburg
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Turnover P/c Eco-industry
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SWM& Rec ~ € 20,-/cap
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SW & Rec ~ € 50,-/cap
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SWM & Rec ~€ 250,-/cap
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Ratio SWM cost/GDP GDP<20.000: 0,1 - 0,2 % GDP>20.000: 0,5 - 1,0 % Low: Estonia, Spain, Belgium High: Slovenia, Denmark, Austria
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A guess Prices for C&D waste recycling are about 1/3 of cost of waste management per capita, e.g.: –€ 7,- at a level of € 20,- –€ 17,- at a level of € 50 –€ 70,- at a level of € 200
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A general model for cost accounting Full costs: –Internal: Process cost Product costs and revenues –External “community” cost: Generation of pollution & deterioration of renewables exceeding natural absorption level & Depletion of natural resources: –Difficult to count, change with wealth –Difficult to address: local, regional or global –For someone else or the next generation –Diluted
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Conservation of misery Law on conservation of matter: the GOOD, the BAD and the UGLY
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A dynamic arena of interacting parties Consequences of goods with negative value Recycling breakeven Profitability regarding different public policy instruments Choice of market match Economy of scale Economic depreciation of investments
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Consequences of goods with negative value Cash flow+ Stock value- Risk management+/- Loss reward+
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Recycling Breakeven –Competition with other treatment chains (e.g. land filling or incineration): dominant competition –Built-in percentage of other treatment: BAD can become worse for residues
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Competing chains Landfill C R -20 50% GOOD 10% UGLY ( = Community) 40% BAD -40 -70 Tipping fee -30 Transport -40 Transport -20 1 2
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A guess Prices for C&D waste recycling are about 1/3 of cost of waste management per capita, e.g.: –€ 7,- at a level of € 20,- –€ 17,- at a level of € 50 –€ 70,- at a level of € 200
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Competing chains Landfill C R -20 80% GOOD +3 10% UGLY (-100 = Community) 20% BAD -5 -10 Tipping fee -5 Transport -5 PRICE ?? Transport -5 1 2 MAX PROFIT ??
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Low cost competition Landfill C R -5 80% aggregate +3 10% UGLY (-100 = Community) 20% BAD -5 -10 Tipping fee -5 Transport -5 PRICE 4,90 Transport -5 1 2 MAX PROFIT 1,30 Wood, Metals, Plastics
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After technical regulation Landfill C R -20 70% GOOD +12 10% UGLY -100 community 30% BAD -20 -25 Tipping fee -20 Transport -5 PRICE 19,90 Transport -5 1 2 MAX PROFIT 2,50
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After technical regulation and taxing Landfill, incinerator C R -35 60% GOOD +2 5% UGLY -100 tax 40% BAD -70 -75 Tipping fee -70 Transport -5 PRICE 69,90 Transport -5 1 2 MAX PROFIT 3,10 5% debris, wood, metal
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Selective Landfill ban for unsorted waste: BINGO Landfill C R -35 60% GOOD +2 5% UGLY -100 = Tax 40% BAD -80 -104 PRICE 99 Transport -5 1 2 MAX PROFIT 28,20 X 5%
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Finding a match of markets A.waste product markets B. Resources markets (Energy and raw materials) B A Sophiticated specific
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Economy of scale collect Sort 1Sort 2 Sort 3end
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Innovation and governmental reliability When investing, parties want a “innovative” public policy guaranteeing change, to be able to invest; After investment parties want a “reliable” public policy to have a optimal depreciation of their assets; It would be a coincidence if all the parties would be in the same stage at the same moment: countervailing lobbying causes delays
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Instruments of public authorities creating a artificial market –Technical regulations (IPPC, BAT) –Treatment regulations (BREF’s) –Economic measurements: grants and taxes –Economic actor: client, supplier, manager
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Effective regulation Thesis: A combination of technical regulation and taxing the remaining external cost is sufficient for the creation of an effective diversified market More is politics and can be used as temporarily accelerator
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Concluding remark: Design your system(-role) back to forth Start in the future, count ten years back; Question what scarce resources are and what can be paid; Count internal and external cost; Design the whole system of end-treatment, recycling and collection (In that order); Find efficient rules for the play and roles for the players.
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