A Thesis Presented To the Faculty of the College of Social Sciences
In Partial Fulfillment of the Requirements of the Degree Bachelor of Arts in the Social Sciences
Rimpillo, Marian Guille G.
February 2014 College of Social Sciences University of the Philippines Baguio Approval Sheet This is to recommend the approval of the thesis of Marian Guille Garcia Rimpillo entitled International Experience and Economics of Solid Waste Management. This is in partial fulfillment of the requirements for the degree of Bachelors of Arts in Social Sciences.
Arturo C. Boquiren Thesis Adviser Noted:
Nimreh L. Calde Chairperson, Department of Economics and Political Science (DEPS) Approved:
Lorelei C. Mendoza Dean, College of Social Sciences ii | International Experience and Economics of Solid Waste Management
Acknowledgement
This thesis would not be possible first and foremost to my thesis adviser, Sir Arturo Boquiren: for being open-minded and listening to my ideas which would normally be deemed unconventional and for giving me an upstart on how my ideas could be heeded and developed. I thank my parents who do everything just for my comforts: my father Mario Rimpillo who ventured away to give us a life of ease at the expense of his own, most especially for his unica ija, because you herald me as a princess it pushes me to not waste time, opportunity and other blessings that come my way; and my mother Elma Rimpillo who continuously checks up on my progress, reminds me to eat and sometimes even closes the lights down for me to sleep already, but most of all I find it fantastic the way she hushes everyone down because she knows I need my odd wee hours to myself. I also appreciate that my younger twin sisters for the time- being that I request I would need concentration, tried their best to be in their good behavior: not making kulit first to their ate. I am grateful for the ones who stark up inquisitiveness that betters my formulations and analytics: Mr. Bernard Okubo for intellectual discussions while drinking hot beverages and also for supporting me like a father. I am most grateful to my co-abalone: Teroji Okubo for being my greatest motivator and acolyte! Without you I could not have finished, with keeping my serenity at that. iii | International Experience and Economics of Solid Waste Management
Abstract Trash can be treasure if managed effectively. The study presented each top countrys SWM profile ranging from production, transformation and disposal. Revenues from taxes per ton are as follows: Austria, Netherlands and US make use primarily landfill tax which yield $120, $177.80 and a base fee of $32.19 with increase of $1.62 per ton per year respectively; while Japan has a more sophisticated taxation with appropriation to type of industry and elasticity of product but basically an increase of a 1% reduction in final waste would yield saving of about $9.40. On recycling, Austria and Netherlands earn per ton $70 on glass, $210 on paper, and $420 on plastics; Japan earns per ton $107.48 on glass, $312.45 on furniture and appliances, and $200-$400 on plastics; US earn per ton $4.890 on glass, $235.300 on paper, $448.335 on steel, $1050.000 on plastics, and $2730.000 on aluminum. On organic waste/composting, per ton the European countries incur $70-1,400, US is $123, and Japan has developed coefficients of how many tons per sector can incur $10million. Lastly, savings are made in WTE on non-petroleum substitute fuels, oil and electricity. With the actualized methods and results, the study analyzed applications for the Philippines. With investigation to the Philippines waste context, viable strategies have been proposed to improve the nations current state: implementation of policies and economic instruments are immediately applicable and could cause earnings for development in technology to not be dependent on just partnerships but long-term betterment and sustainability of the Philippines ISWM. iv | International Experience and Economics of Solid Waste Management
Table of Contents
Title Page...i Acknowledgement.........ii Abstract.......iii Table of Contents...iv I. Introduction A. Background of the Study..1 B. Significance of the Study...7 C. Statement of the Problem and Research Objectives.10 II. Review of Related Literature..12 III. Methodology A. Framework of Analysis...31 B. Data Gathering and Analysis...32 C. Scope and Limitations..35 D. Definition of Key Terms.42 E. Abbreviation and Acronyms44 IV. Results and Discussion A. Identification of Countries with Most Advanced Experience in SWM...45 B. Narration of Most Advanced Countries ISWM Profiles.........51 C. Recognition of Returns from Effective ISWM.......68 D. Possible Application of Advance Country Experiences to Philippines.........83 V. Conclusions and Recommendations A. Conclusions95 B. Recommendations.100 1 | International Experience and Economics of Solid Waste Management
I. Introduction
A. Background of the Study The generation of waste is a mirror image of economic growth since as ISWA relays on the account of their observing of the best Waste-to-Energy, products create waste during raw material extraction, production, trade, shipment, and when being used before ultimately becoming waste themselves (ISWA, 2010). For both developed and developing nations, there is similarity in demand trend: populations continue to increase and so does consumption patterns thus resulting to waste management becoming an issue of global concern, however, the growth of the solid-waste market, increasing resource scarcity and the availability of new technologies are offering opportunities for turning waste into a resource (UNEP GEAS, 2013). Hence besides concerning with maximum profit retrieved on consummation, other within-operation-based maximization is a sought of transition to which the goal of maximum returns aims at sustainable development already. The World Bank recognizes sustainable development and that this may have many definitions. The landmark surfacing on 1987 is that it is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs" (WCED, 1987, p. 43). 2 | International Experience and Economics of Solid Waste Management
Later on, the International Institute for Sustainable Development was established and it adheres to the Brundtland Report of the World Commission on Environment and Developments definition but just further standardizing that sustainable development must contain two key concepts: the concept of needs, in particular the essential needs of the worlds poor, and the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs (IISD, 2013). Besides then looking after sustainable growth, there is a seeking of appropriation of context: to look after which sectors or areas have difficulty in attaining their needs and then how to go about it with the available and/or could be acquired capital (like by IISD mentioning social organization an technology, emphasizes the vitality of people resource management and pragmatics workability). Nations are indeed seeing a value in sustainable development as observable with almost each establishing a millennium (or varying time-period) development plan which is not only geared to achieving economic development but finding more ways of sustaining it. The congregation of UN is one which pushes for millennium development goals (MDGs) most persistently and its efforts have resulted to the MDGs having been the most successful global anti-poverty push in history (UN, 2013, p. 3) but UN admits in their 2013 report that the achievement of the MDGs has been uneven among and within countries (UN, 2013, p. 3). It has enlisted eight goals with which the top seven is Ensure Environmental Sustainability'. 3 | International Experience and Economics of Solid Waste Management
But not just the supposed most cautious allocator which is the government which has a big role in upholding sustainable development as part of its nations future orientation but even profit-oriented sectors are highly integrating sustainable development to their working mechanisms. As one of the world's largest professional services firms, Pricewaterhouse Coopers in 2006, foresees that sustainable development will steadily advance over the next decade, with six major trends influencing industry world-wide (Kate Alexander, 2006): growing influence of global market forces, consumerism not limited to government policy; revisions in the financial model draw on to set corporate and government strategy; innovation, particularly in core industries; globalization where international institutions will be responsible for formulating global policies and the role of national or local institutions will be limited to implementation; evolution, not revolution so progress toward sustainable development will be largely incremental and barriers to rapid change will cease to exist, but specific catalysts may cause spurts of great change; communication such that the global media may influence which issues governments and industries focus on and accelerate the speed of changes in policy and behavior. Not only has sustainable development been an increasing concern in the government and public sector, but it is also an increasing priority on income generating and other private sectors. The global society is really integrating between sectors so we can say sustainable development shall be furthered in future economic undertakings where we see that there is a rising dynamism in the public and private sectors to care for making ends meet now and in the years to come. 4 | International Experience and Economics of Solid Waste Management
More particularly, there is a new lobbied specific transition which is Green Economy. UNEPs publishing on a synthesis for policy makers entitled Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication shows magnanimous rewards of greening the worlds economies are tangible and considerable, that the means are at hand for both governments and the private sector, and that the time to engage the challenge is now (UNEP, 2011, p. 1). To establish how young this new wave is, the report paints out how it is developing in terms of integration it observed prior to the reports publishing in 2011 wherein the last two years have seen idea of a green economy float out of its specialist moorings in environmental economics and into the mainstream of policy discourse: It is found increasingly in the words of heads of state and finance ministers, in the text of G20 communiqus, and discussed in the context of sustainable development and poverty eradication 1 . (UNEP, 2011, p. 1) UNEP defines a green economy as one that results in social equity by improving human well-being, while significantly reducing environmental scarcities and ecological risks. The concept of a green economy does not replace sustainable development, but there is now an emerging recognition that achieving sustainability rests almost entirely on getting the economy right (UNEP, 2011, p. 2). Having a green economy then is a great component for being sustainably developed.
1 The Rio+20 agenda has adopted green economy as a key theme in the context of sustainable development and poverty eradication nearly 20 years after the Earth Summit was held also there. 5 | International Experience and Economics of Solid Waste Management
Status quo is that we are living in an era of capital misallocation. As UNEPs green initiative characterizes several concurrent crises have either sprung up or accelerated during the last decade: crises in climate, biodiversity, fuel, food, water, and of late in the financial system and the economy as a whole (UNEP, 2011, p. 1). Our heavily industrialized world has promulgated the highest production and consummation ever and it is logical how there are these backlashes. The Industrial Revolution marked a major turning point in Earths ecology and humans relationship with their environment such that it dramatically changed every aspect of human life and lifestyles: the impact on the worlds psyche would not begin to register until the early 1960s, some 200 years after its beginnings (McLamb, 2011) - from human development such as health and life longevity then to social improvements of such and the impact on natural resources such as energy usage and sanitation then to their economic repercussions, the effects were profound. Susan Strasser author of the book Waste and Want: A Social History of Trash, spoke at Harvards Geological Lecture Hall as part of the Peabody Museum of archaeology and Ethnologys fall lecture series, Trash Talk and in her lecture entitled Rags, Bones, and Plastic Bags: Trash in Industrial America she claims, In all cultures, people reuse stuff. Thats what the Industrial Revolution interrupted (Powell, 2011) so she tracked the evolution of refuse from the 19th century to the present. Before the Industrial Revolution, Strasser said trash was virtually unknown. Without widespread mechanization and absent a ready supply of consumer goods, people developed the skills to make and maintain the things they owned. The household functioned under a cultural framework that saw worth in 6 | International Experience and Economics of Solid Waste Management
individual handiwork and the maintenance of a familys possessions for years and even generations as she encapsulates, People used to be stewards of things, and their reuse was a fundamental skill of life (Powell, 2011)and by the end of the 19th century and early in the 20th, it was altered by the rise of new manufacturing methods that made mass production of goods possible, lowering their cost just to make commodities available throughout the masses. But the subsequent effect to the masses is that the lowered cost also lessened incentives to care for things as diligently as in the past (Powell, 2011). New line of products meant new wastes generated as Strausser identifies: disposables, made with the express purpose of eventually being thrown away, with industrialization came the idea of affordable luxuries, an increased emphasis on fashion, style, and acquiring the latest technological innovations and what arose was an association of poverty with mending things and reusing them (Powell, 2011). She recounts, Through the early part of the Industrial Revolution, there were no landfills, no incinerators. There just simply wasnt that much trash (Powell, 2011) and attributes it so from production and disposal being part of the same processes much like how households traditionally operate. As consumer society took hold, cities began to institutionalize the easy creation of trash through garbage pickup. For the first time, families could drop things they no longer wanted into a trash can, cart it to the curb, and never see the trash again (Powell, 2011). The government did not curb the unsustainable practices then and just catered to a linear profitability: of how industries could produce more to cater to more consumers, thus only concerning itself to waste 7 | International Experience and Economics of Solid Waste Management
collection and not much of the intrinsic practices on waste generation and extrinsic process of possibly waste transformation. The most rapidly generating type of waste was determined by UNEP in 2009 were solid and hazardous waste which is attributed to continuous economic growth, urbanization and industrialization, is becoming a burgeoning problem for national and local governments to ensure effective and sustainable management of waste (UNEP-DTIE, 2009, p. 2). It was estimated that in 2006 the total amount of municipal solid waste (MSW) generated globally reached 2.02 billion tones, representing a 7% annual increase since 2003 (Key Note, 2007). It is further estimated that between 2007 and 2011, global generation of municipal waste will rise by 37.3%, equivalent to roughly 8% increase per year (UNEP-DTIE, 2009, p. 2). Waste management does not only reflect societies utilization of resources available therein but their general relationship with the environment. My input- output analysis and theorizing interest has been vested on the deemed greatest component of those incurred in society which is management of solid waste.
B. Significance of the Study 1. Importance and timeliness of the issue: Urbanization has increased in speed and scale in recent decades, with more than half the worlds population now living in urban centers ( DESA, 2012). By 2050, urban dwellers probably will account for 86 per cent of the population in developed countries and for 64 per cent of the population in developing countries ( DESA, 8 | International Experience and Economics of Solid Waste Management
2012). Rapid urban population growth has resulted in a number of land-use and infrastructural challenges, including municipal solid-waste management. Not just with the upkeeps, but with the culmination of an effective SWM, it is said that national and municipal governments often have insufficient capacity or funding to meet the growing demand for solid-waste management services (Tacoli, 2012). Solid-waste management is the single largest budget item for many cities (UN- Habitat, 2010) which goes to show how important SWM is. According to World Banks estimation, urban authorities in Asia spend an estimated 50-70% of their revenues on waste management and the effect of neglecting the environment is said to cost an average 5% of the GDP. There must not be just spending allocated to waste management but conceptualizing it to the most sustainable way that it could be so there would not be further losses and for possible gains. 2. Contribution to the Issue: Although rich in empirical detail, studies in environmental history and economics often strike world system analysts as theoretically underdeveloped. They generally do not address the fact that landscape changes in core areas have been recursively connected with those in peripheral areas. Although several books claim to deal with global environmental issues (e.g. McNeill, 2000 2 ; Hughes, 2001 3 ; Richards, 2003 4 ; Radkau, 2008 5 ; Simmons, 2008 6 ), they are rarely global in this sense (Hornborg, 2010). SWM studies with cross-comparison on different locations
2 Something New Under the Sun 3 An Environmental History of the World 4 The Unending Frontier 5 Nature and Power: A Global History of the Environment 6 Global Environmental History 10,000 BC to AD 2000 9 | International Experience and Economics of Solid Waste Management
tend to offer a series of national and local case studies, focusing more of the environmental records of individual nations and groups rather than on the global and historical experiences and material flows that have generated their problems as well as their options. In this study: Not only stages of operation was looked into, but also economic instruments used to induce sustainability within the operation and participation as a whole; Not only gain showcasing happened, but also prying for savings that can be obtained from effectively mitigating trade-offs like environmental harms other externalities that may add up to costs. Considering that many of these authors use words such as global and world in the titles of their books, it is remarkable that so few of them really consider the world as a system (Hornborg, 2010). The framework considered in the study was: Not just determining the statistically/pioneering best countries But moreover, including respect of representation across differently acclaimed geopolitical arenas Most of all, bearing in mind not only materializations in place-setting but also economic considerations and values inculcated that brought rise to success in SWM. 10 | International Experience and Economics of Solid Waste Management
The award-winning book of Pomeranz makes a useful distinction that most of these global narratives treat different regions in terms of comparisons rather than connections (Pomeranz, 2009, p. 25). Analyses, conclusions and recommendations made in this study from successes of the most advanced countries were not just parallelized to the Philippines but are appropriated. This study is more of a connection-building than merely comparing: primarily addressing to exhibit the integration of sectors that give rise to waste management and how the efficiency of these sectors yields economic benefits. Thus the ultimate contribution is showing that the real triumph on management is learning, and not just copying, how to turn what is considered trash into beneficial turnover for the state. The desired result would be shown possible via first giving consideration to the socio-economic situation and then how utmost utilization of owns economical advantages may be plausible for both the short run and the long run.
C. Statement of the Problem and Research Objectives The main purpose of the study was to examine the economics and international experience on garbage, specifically the most generated which is on Solid Waste Management to observe how garbage has been profitable to successful nations in integrated solid waste management and to culminate effective actions for an ISWM that would profit also the Philippines and also to which it could gain sustainable development.
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The research was aimed at achieving the following objectives: 1. Identify the countries with the most advance experience in waste management 2. Narrate the details of the experiences of the countries focusing on: a) SWM Policies and Economic Instruments b) Circulation of Waste Composition c) Approach and Facilities d) Budget Allocated or Funding e) Returns and By Products 3) Identify the experiences applicable in the Philippines in the immediate or long term and the economics
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II. Review of Related Literature
A. Waste Management 1. Origins of Managing Waste: The necessities of waste management goes back as early as the 7 th century B.C. primarily catching intellectuals eyes due to the health concerns it raised and the abnormality it caused lands and public spaces, primarily where urbanization was to be found. The Romans capture their creation of sewage systems capturing refuse and materials from latrines to be drained into the Tiber. But as each society prospered and expanded, they develop new waste systems according to certain economic trends of their times. We could take Middle-Ages latter disuse of the Roman style of sewerage was replaced it with Urban brooks and moats, having surface run-off rainwater and drainage waters, to suit the artisan activities of the time due to the professions mechanical value of water. But, as time progressed, certain societies in the Middle-Ages till the Renaissance rather turned to creating privies and later underground reservoirs under dry latrines which even developed a new profession of cesspool emptier 7 . By the 13 th century human waste was prohibited to be dumped in sewers and river due to its contamination of surround
7 a vacuum truck which removes contaminated water from hollows (cesspools and sewage tanks) and carries it to a disposal point. 13 | International Experience and Economics of Solid Waste Management
water bodies take the case of Paris where the Grand Egout or the Great Sewer had its back water at Right Bank (Barles, 2010, pp. 1-4). By the 18 th century the role of environment to health was emphasized primarily by the medical sector. The state of the environment was then taken to account an areas morbidity and mortality. Cities were subject to a negative natural balance but also it general population having shorter life span, in comparison to its neighboring countryside. Many of the doctors then detected the airs degradation furthered diseases due to the accumulation of human waste and contamination of grounds. This led to the establishment of better policies, such as airing cities and reducing human and urban waste, through which was further developed throughout the 19 th century integrating industrialization, urbanization and recycling (Barles, 2010, p. 5). 2. Relationship of Waste Management to Economic Growth Throughout the development of worlds industries and communities, a trade- off between high standards of sustainable economic growth and of environmental quality has been a fragile and extensive issue. Different independent organizations and nations have been tireless in their pursuit of balancing the scales. Firstly, let us focus on economic activities; wherein a higher prerequisite of energy and raw materials results to a high waste production. An economic survey done in Europe at 2003 tried to define the varying scales of economic-environmental relationships. Panayotous study which primarily delved on the inverted U relationship between environment quality and economic growth with the use of Kuznets curve in inquiring on (Panayotou, 2003, pp. 45-72): 14 | International Experience and Economics of Solid Waste Management
level of per capita income on the turning point, gravity of damage that would have taken place and ways it can be avoided, also violations on ecological thresholds and degradation of the environment if irreversible damage is not circumvented, correlation of environmental improvement to income level and other factors such as conscious institutional and policy reforms and approaches to accelerate development process so that developing and transition economies can attain the same improved economic and environmental conditions enjoyed by developed market economies (Panayotou, 2003, p. 52). Notice that the questions of income, damage and ecological factors are phrased generally. This is due the Kuznets model changing results caused by the varying variables used through its focus (population growth, income distribution, international, trade and time-and-space-dependent etc.). Various studies made using this model although concede to a general fact that if the variables compared are from the income environment relationship the EKC or the environmental Kuznet curve may prove useful. The simplest explanation as to understanding the EKC was introduced by Adreoni and Levinson (Panayotou, 2003, p. 49) by having the variables of good and bad: whereas a rising income was attained by the consumption of good but at the cost of generating the bad. The consumer is then faced with a trade-off wherein to reduce the ill effects of the bad the consumer must sacrifice part of his income to abatement programs rather than a focused spending on the good. The inverted U- shape is then presented first on the increase of returns when it is characterized by the abatement technology the consumer can avail of. Having a high income 15 | International Experience and Economics of Solid Waste Management
consumer, compared to a low income consumer, then can easily achieve more consumption and less pollution where an abatement technology can only be characterized by its increasing returns when it requires a lumpy investment or when lower marginal cost requires larger fixed costs. Essentially low income consumers are not large enough or polluted enough to obtain a positive return. Hence, low income consumers tend to invest more on low fixed cost or high marginal cost technologies. Conclusively, only a high income consumer gets to be effective on the usage of high fixed cost, low marginal cost technologies. In respect, those different pollutants have different abatement technologies. Khan then substantiates the said study by producing results of his own having a study in California, Chauhudri and Pfaff proving the relationship between carbon emissions and household income and in Pakistan, the relationship of indoor waste and household income (Panayotou, 2003, p. 49). By conclusion of the EKC, having no scarcity of microfoundations in proving the inverted U-shape be it via income and pollution, abatement technology and customer preferences let us proceed to further substantiation of the economic growths relationship to pollution. By the 1990s the EKC studies boomed to test a variety of pollutants. But more importantly Panayotou focuses on studied the income environment relationship. One of the studies reviewed by Panayotou was an EKC focus on environmental degradation which had samples of 149 countries during the 1960 1990 using functional specifications of log linears, log quadratics and logarithmic cubic polynomial forms. This study concluded that although deforestation was independent from income, the lack of clean water and sanitation, water pollution, 16 | International Experience and Economics of Solid Waste Management
municipal waste and carbon emissions increased uniformly with income having their turning points between the income levels of $300 to $4000. Panayotou however with the use of cross section data and a translog specification found turning points of the pollutants at $3000 to $5000 income levels in observance of the raise of exchange rates. Furthermore, Panayotous EKC application on deforestation then proved a turning point at $ 800 per capita. Deforestation as he claims is significantly greater in tropical and densely populated countries. The studies mentioned may only provide a net effect between income and environment providing that income may have several factors involved but a study by Panayotou, Islam and Vincent further clarify how the inverted U within the EKC model is attained by having three distinct structural forces that affect environmental quality, these are: the scale of economic activity, the composition or structure of economic activity, and the effect of income on the demand and supply of pollution abatement efforts (Panayotou, 2003, p. 52). These result in naming respective effects on the environment, the scale of the said effect and the pure income or abatement effect. With an established formula (Panayotou, 2003, p. 52): [Ambient pollution level] = [GDP per unit of area] x [composition of GDP] x [Abatement efforts] This suggests that having a large scale of economic activity per unit of area, pollution levels higher having all else equal. The structural change within economic activity and environmental quality is dictated by the economic activitys veering towards lower or higher pollution intensity. Subsequently, at lower levels of income 17 | International Experience and Economics of Solid Waste Management
the increase of pollution intensity is a result of a dominant shift of agriculture towards industry. In comparison, high level incomes in an industry avail services which lower pollution intensity. The composition effect, therefore, results to be a non-monotonic function of the GDP (an Inverted U). If the income is stripped of its scale and composition effects, having a pure income, to derive income effect on demand and supply of environmental quality results show that a low income country is focused more food and shelter and has little effect on environmental quality demand. But, at high income countries, the rising income led to the demand of environmental quality since food and shelter is already at a normative good if not superior state. International trades explanation though on the other hand may vary on its sloping segment of the inverted U shape between pollutants and income. A certain hypothesis to this is high income countries tend to trade or invest pollution intensive products to poorer countries due to lower environmental standards. Grossman and Kreuger (Panayotou, 2003, p. 53) states that developing countries may then not find poorer countries to serve their production of pollution intensive goods, thus, an indication that the past may not be a good predictor of the future. International trade may have its blurry lines in the income environment relationship that other economist shifted their style of approach by focusing on countries consumption rather than its production. However, a study by Ekins that negated the EKC hypothesis proved still to be faulty at its methodology having the aggregation of so many dissimilar indicators that the systematic co-variance with income was eliminated. Conclusively, International trade needs more studies to 18 | International Experience and Economics of Solid Waste Management
clarify its role in an income environment relationship. Although, a growing number of studies provide evidence that open economies tend to be cleaner than closed ones. Being that an inverted U-shaped relationship between income and environment established. It suggests that a country can outgrow environmental problems with a normal economic growth. This is due to results dictating that an environment eventually gets worse before it gets better. The strategy proposed by this is a quick economic growth to surpass the environmentally bad stage of the EKC. Now, the step to be observed next is the countrys policy intervention. A policy factors in this relationship by whether it delays or advances, weakens or strengthens either the environmental variable or the economic one. Taking to account low income countries, it may take decades to outgrow the bad environmental stage in the EKC this suggests that the accumulated damage done to the environment maybe too high for the present value of higher future growth. Consequently, an active environmental policy that mitigates pollution and resource depletion may be justifiable under the grounds of economics. In the same context, a present prevention may in turn be more cost effective than a future one taking for example safe disposal of toxic wastes. Economic inefficiency and unnecessary environmental degradation, therefore, are deemed consequences of market and policy failure which results to a far more critical ecological threshold thus irreversible change occurs. Examples of such events are the loss of biodiversity, extinction of species and irrecoverable depletion on natural resources. In support Munasighe (Panayotou, 2003, p. 55) suggests that while economy wide reforms in 19 | International Experience and Economics of Solid Waste Management
poor countries are aimed at accelerating economic growth the environmental impacts it produces may cause it to exceed a safe ecological threshold. In conclusion, he suggests policies to have adjustment of the timing and sequencing of policy reforms and complementary measures to address specific distortions and tunnel through the EKC, while cautioning against the temptation of making major changes in economy-wide policies merely to achieve minor environmental (and social) gains (Panayotou, 2003, p. 55). Similarly, Arrow et al, suggests bettering off ecosystem dynamics vis--vis signals to economic agents by providing right incentives for protecting ecological systems.
B. Industrial Growths and Demands 1. Agriculture: There is an increase of demand and land aggregation. On a global scale of assessment, the agricultural sector has significantly increased in land use and production, in a trade-off, so as rates of soil degradation, nutrient pollution, biodiversity loss and the likes have increased as well. High yielding crop-varieties, fertilization, irrigation and pesticides have factored in to increasing food production. These few decades alone primary crops have triple with only a 12% increase in cropland. While the total production has had significant increase this cannot be said on a person to person basis having only an increase of a third. Agricultural intensification however, if compared between high- income regions to low income regions have significant differences both in its 20 | International Experience and Economics of Solid Waste Management
economic production and waste production. While a dramatic increase in food production in Western Europe is observed it must be noted that its agricultural land has in effect been reduced. This result is attained by the high income region to avail high technological farming. Compared to Western Africa with a low technology scale have increased production via agricultural land expansion. Similar cases could be said on the 60% majority of global farmers. In correlation, the industrialization of agriculture has shifted from a state centered national agricultural development into a privatized system structured to service the international demand. Evidence suggests that by 2005 alone 50% of all commercial seed are controlled by 10 corporations; and 75% of the market is controlled by only 5 grain trading companies (IRP, p. 36) . With this degree of intensification the usage of fertilizers may have increased food production the degradation of environmental quality has been significant as well. Consequently, this has led to a high nutrient pollution not only within land areas but extends itself to marine ecosystems as well. By 2005, a study by Lepers et al suggests that agricultural expansion as well as conversion of natural habitats have been the two key causes in degradation within the biodiversity and ecological systems. Not only does this affect animal and plant species it, as well, degrades soil quality. By 2009 Van Vuuren and Faber (IRP, p. 34) have noted that in order to halt the biodiversity loss, agricultural lands must be stabilized. The priority of the international community in a sense is not only to protect and maintain natural ecosystems but also to address the increased demand of agricultural products. 21 | International Experience and Economics of Solid Waste Management
Other vital products of agriculture are climate change and food security. The IPPC has concluded that fossil-fuel combustion and land use changes has had significant emissions which attribute to climate change. Land use, particularly, and land cover change emit GHGs (greenhouse gases) to the atmosphere via the degradation of land which increases carbon dioxide inland. The main driver for such damage however is intensified by the sequence of deforestation followed by agriculture. Other GHG emissions trail after with the inclusion of methane from altered hydrologies; wetland drainages and rice paddies, cattle grazing. Also, the input of inorganic nitrogen fertilizers alongside nitrogen fixing plants and biomass combustion has led to nitrous oxide presence within agriculture. Food security though is another important factor to understand agricultural booms. Not only that 70-80 % (IRP, p. 37) of income by the affected population goes to food, the consequences such as increased infant and child mortality of those already undernourished and those who live in poverty must be taken note of. Although food prices have had a long term decline due to the massive increase in agricultural production this too has in turn been raising production costs such as fuel, fertilizer, and more recently the demand for bio fuels which conclusively offsets the downward trend of price. This trend would then also be attributed to population growth and diet change caused by modernization and urbanization of areas. While the average food price of today linger below their peak in 2008 a similar level is attained this 2011 although are higher in many developing countries. These crises of food and energy would then set new pressures on the global 22 | International Experience and Economics of Solid Waste Management
economic system as a whole. Countries with a high share of food imports and limited fiscal spaces would then result to a net increase in extreme poverty, having 44 million people in developing countries (IRP, p. 37). The demand for food however would still increase towards 2050 still as a result of population growth and new demands, increased incomes and growing consumption of meat and dairy products according to a projection by the OECD-FAO. Despite the harms of agricultural intensification to the environment, it may present benefits as well in the form of agricultural products in export to support a national economy. In the case of Argentina, whose exports rose from 23.3 to 68.1 billion USD, innovation within the agricultural sector was made during the rising demand of its cash crops making the country maximize its opportunities in terms of environmental taxes to create programs from poverty alleviation to external debt payment. 2. The Urban Sector and its Problems: The urban sector may be by far the most complex of sectors when it comes to waste production having the agreed UN term of Municipal Solid Waste or the MSW. MSWs then are subdivided within 4 categories of waste: Residential, Commercial, Institutional and Municipal Services, each waste is primarily produced by the aforementioned respectively. MSW on the current global scale rakes at about 1.3 billion tons a year and is projected to increase to 2.2 billion by 2025 according to the urban development series (Hoornweg & Bhada-Tata, 2012, p. 1). But to be more accurate MSW production must be seen on higher specificities such as by region, country or city. Urban consumers though produce twice as much compared to rural 23 | International Experience and Economics of Solid Waste Management
consumers. This is due to factors become more intensified in urban areas. We encounter degree of industrialization, public habits, local climate and the degree of urbanization itself, as standards of living increase the consumption of goods and services increase correspondingly. Viewing by region, the case of sub-Saharan Africa leads waste production with an approximate of 62 million tons per year. This varies though upon a person to person basis, having a 0.09 to 3.0 kg person per day averaging to a 0.65kg/capita/day. Similarly island countries read the highest per capita rates due to the waste generated by its tourism industry augmented by it general waste. Comparatively East Asia and the Pacific Region result to 270 million tons per year having China responsible of the 70% generation with a person to person average of 0.44 to 4.3 kg per day. Eastern and Central Asia generates 93 million tons a year having 8 countries without data. Latin America and the Caribbean had the most consistent data results to 160 million per year having capita values at 0.1 to 14kg/capita/ day, these averages to a 1.1kg/capita/day. In comparison to Africa, the Caribbean generates more waste per capita. Middle East and North America generates 63million tons per year. Per capita generation is 0.16 to 5.7kg/capita/day which average to 1.1kg/capita/day. OECD countries generate 572million tons per year with a capita range of 1.1-3.7kg per person which averages to 2.2 kg/capita/day. Finally the South Asia region generates 70 million tons per year with a capita range of 0.12 to 5.1 kg per person with an average of 0.45kg/capita/day. Comparatively high income countries produce most waste per capita while low income countries produce the least. In the case of India and China, the urban 24 | International Experience and Economics of Solid Waste Management
waste produced by these countries is disproportionate to its overall economy due to their population (Hoornweg & Bhada-Tata, 2012). Inconsistent data on solid waste generation in some Asian countries prove to be the main setback in the improvement of its management (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 19). Urban population in Malaysia, for example, has produce 8million tons per year in 2000 alone having 25% of the waste generated from Klang Valley independently. The case of Kuala Lumpur reached a generation rate of 3000tons in 2001 and is expected to increase by 2017 to 3200. In comparison, Malaysia is estimated at a generation rate of 25,800tons a day. Katmandu, similarly, produces a staggering 80% of Nepals total waste while Chinas medium sized cities produce 60% of its waste (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 19). The problems faced in urban areas seem to have chain reactions, from poor collection systems resulting inappropriate disposing methods such as dumping in isolated areas. In the city of Phnom Penh the problem of inadequate waste collection has resulted into garbage being dumped into rivers, burnt or left uncollected (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 20). In contrast, Malaysia waste collection maybe at 100% but only 70% of the collected waste is disposed properly leaving the 20-30% disposed illegally into rivers or burnt (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 20). Although the amount of waste generated may also cause a problem it must also be taken to account that its composition play a factor to how a country responds to waste management. Waste composition in Asia has an estimate of having 75% organic except for Japan. The organic waste seems to 25 | International Experience and Economics of Solid Waste Management
root from kitchen and food waste. This trend, however, varies by the change in consumption of the countries having the gradual practice of paper and plastic due to packaging materials. Which leads to the other problems faced by the recycle reuse sectors; despite door to door collection and segregation is practiced, recycling is hindered by the poor management and lack of recycling infrastructures. Despite these efforts problems with energy resourcing may add as well, having that emission levels from incineration and Bio fuels be strictly regulated to avoid added pollutions (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 23). 3. External Problems in Waste management: Asian developing countries may have rising MSW generation but in order to put a strong foundation policies must be forwarded. In the case of Malaysia though, the constant debate between solid management law and related issues has hindered the countrys progress in the waste management sector. As policies are being developed to facilitate and standardize waste management an integral part of forwarding is to consider the technological capacity of countries as well. The varying geography and culture alone in a country may hinder an industry that may present scientific or technological progress. Local capacity development must be taken priority over the import of technology.
C. Waste Management for Sustainable Development 1. Attaining Sustainable Development: To delineate urban waste from rural waste we must consider first Non controlled and controlled wastes. Agricultural, which is highly rural, alongside 26 | International Experience and Economics of Solid Waste Management
radioactive and explosive waste fall under the uncontrolled sector while MSWs Special and non-special waste are all classified to be highly urban. In order to manage waste generating factors a process of resource recovery is a widely accepted model wherein materials to be reused in their original form must undergo a controlled process of sterilization and recovery. This process however must be designed to suit a disassembly and ecology friendly. One of the waste management process is the return of products to their manufacturers this process being called the product takeback. Product takeback prioritizes the reverse of logistics. Take for example Canons toner cartridges or the return of Xerox machines. Another strategy called waste exchange wherein waste producers sell their waste to outside organization capable of using the waste for their own production. The UK Governments Advisory for Business and Environment take eco- efficiency a necessary prerequisite to achieving a sustainable consumption (CIPS, 2009, p. 12). Eco-efficiency was coined in respect to the produce more from less or the use less resource to produce the same amount ideology. To understand Sustainable waste management a paper by P.Agamuthu, S. H. Fauziah, K.M Khidzir and A. Noorazamimah Aiza done in Asia observes the different factors or drivers, as they say to attaining sustainability. Agamuthu et al first discuss upon the Human drivers involved in the process of sustainability. Firstly, by focusing on the health and wellbeing of a population, claiming that elected governments must provide first healthcare. This involves waste management and disposal policies which reduces risks on health such as diseases. This however must go hand in hand with information dissemination of state policies via Education. For 27 | International Experience and Economics of Solid Waste Management
the citizens or the population to participate effectively and cooperate they must first be informed of benefits (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 3). On an economic standpoint consumers and producers alike respond better on incentives. A case presented on a Malaysian middle-class municipality by Chenayah, et al (2007) found that recycling within the municipality have an increase of 20% if provided by auxiliary facilities. The same study found that the development of landfills within residential areas is attained smoothly and efficiently if only provided simple literature and explanation which in turn raises awareness within communities. The second drivers presented within the study involve the economic factors. Fundamentally, we must consider the present Socio-Economic Condition of a country. Take to account the financial capacity of the nation to make any waste management policy forwarded. In this case high-income countries are able to spend more on the said policies. World Bank estimated that New York spent 0.48% (106 USD per capita) of its capita on solid waste management alone comparing to the 15 USD per capita expenditure of Malaysia which is 0.38% of its GDP. Vietnam although using 0.8% of its GDP, amounts only to a 2USD per capita expenditure on solid waste management. Therefore, percentage allocation varies from the actual dollars spent. Waste recovery plays a vital factor as well in the interplay of a countries economics. Modern manufacturing not only save in production to the minimal processing of salvaged goods but also goes hand in hand in preserving the integrity of the disposal systems. The case of Japan, in a study conducted by Contreras et al (2006), reports that the effective segregation of paper and plastic resorts to an export product as 28 | International Experience and Economics of Solid Waste Management
raw materials to its target markets, primarily developing economies such as China and India which use recycled products as a secondary source of raw materials for development. Japan, in course of 1990 to 2005, has exported 21.9 to 3108.5thousand tons of paper and 41.4 to 1053.2thousand tons of plastic. Environmental Drivers factor in waste management in policies forwarded to protect environment. Trends in policies and research are driven by environmental issues. This in turn results to environmental integration to economic plans. 2. Responses to MSW Generation: Waste generation has doubled its rate in some industrial countries (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 19) while developing countries waste production are also increasing at drastic levels. This is caused by rapid urbanization, rural-urban migrations, increase of per capita income as well as the consumption patterns brought by development (Agamuthu and Khan, 1997). Although various technology and policies have been developed to cope with waste generation increase and diversity, primarily on cities, open dumping or Land filling alongside composting and incineration has been the main disposal process of most low income countries. This process, however, poses not only waste to environment but extends to the scarcity of land and results to the loss of recyclable resources (Shapkotta et al 2006). Composting of MSWs indicate a rather large amount of organic waste while open dumping indicates high disposal of recyclable waste. A well-managed composting method has great potential to mitigate ecological imbalances due to the loss of nutrients from ecosystems and disposal of 29 | International Experience and Economics of Solid Waste Management
organic wastes. If proper composting were to be introduced to Asian countries, per se, it could enhance both economic and environmental sustainability. Recycling and Reuse in the Asian countries has been a method ultimately increased by the presence of scavengers. In 1990 1998 the recycling rate was double over from 10% - 22% by the scavenging bodies through segregation and effective collection. In the case of Sri Lankas Ministry of Forestry and Environment, the encouragement given to segregation in household effectively reduce the amount of the total waste disposal. Thailand took the private sector to developing high end recycling centers which trade internationally. China alone recorded 3.6 billion USD in recycling. In the less developed parts, Cambodia 12% of their total waste is sorted out prior disposal in households. Meanwhile, the insufficient availability of recycling plants in Nepal and Bhutan made countries resort to direct exports to India. 3. Business in Waste Management: MNCs represent the overall shift of a society to consumerism (WB: Urban and LGU Working Papers, 1999, p. 14). Their global marketing programs have factored in greatly in waste generation and composition. But on a lighter note have addressed the waste stream as well with progressive programs that integrate recycling. In the case of Brazil, local governments have partnered with these marketing bodies to achieve comprehensive waste management programs. The ERP or the extended product responsibility as well has improved a countries response to MSW generation, though voluntary in nature, by involving manufacturers, suppliers, retailers, consumers and disposers of various products. Germany or parts of Europe as well developed the Ecocycle Waste Act of 1994 which sets environmental goals 30 | International Experience and Economics of Solid Waste Management
for manufacturers. It provides the necessary guidelines for goods regarding reusability and recyclability; by using secondary materials as a source for production. Sweden developed ordinances to increase return and recycling of consumer packaging from papers to used tires. Waste exchanges between industries as well have been developed to decrease MSW generation, increase profit and raw materials. This suggests that Asian countries must be cooperative in establishing secondary materials markets and promote a consistent product and package design amongst their countries (WB: Urban and LGU Working Papers, 1999, p. 18).
31 | International Experience and Economics of Solid Waste Management
III. Methodology
A. Framework of Analysis IETC recommends inclusion of the following elements which was taken account in the analytical framework of this study (IETC/UNEP, 2005): Integrated Waste Management Stakeholders Cost Recovery The key concern is to find out the economic value of what is usually called waste. Although economic benefit-cost analysis is a strategy closest to find out real values that can be recovered from wastes, the focus instead of this study is finding out how much financial value can still be recovered from one ton of garbage. For appropriation of learnings to our context, other important strategies that nuance are incorporated in the framework of analyzing such as (IETC/UNEP, 2005): Understanding characteristics of waste generated Major differences between industrialized and developing countries 8
Improving management capabilities Public Involvement
8 Discussed in Scope and Limitations of the Study 32 | International Experience and Economics of Solid Waste Management
Proper handling of special wastes Understanding characteristics of waste generated is the attunement of pragmatics and its complementing technologies to the character of the waste that is generated in a particular location i.e. if wastes are wet and dense, as they are in most developing countries, buying compactor trucks will often be a waste of money; if wastes have low calorific value, it will not be possible to incinerate them without using supplementary fuel; if considerable amounts of toxic waste have entered the general municipal solid waste stream, leachate from dumps will be particularly dangerous. On the other hand, if a portion of the waste stream consists of organics or can be easily separated into organics and non-organics, composting may become a viable waste management strategy (IISD, 2013, p. 15).
B. Data Gathering and Analysis The approach is to identify first countries having most advanced experience in SWM, herein is the gage in the platforms for socio-economic standards. Municipal solid waste (MSW) is a term usually applied to a heterogeneous collection of wastes produced in urban areas, the nature of which varies from region to region. The characteristics and quantity of the solid waste generated in a region is not only a function of the living standard and lifestyle of the region's inhabitants, but also of the abundance and type of the region's natural resources. On a global scale of comparison of Solid Waste Management, IETC makes it clear that, The primary difference between wastes generated in developing nations and those generated in 33 | International Experience and Economics of Solid Waste Management
industrialized countries is the higher organic content characteristic of the former (IETC/UNEP, 2005, p. 1). Therefore a more specific way of approaching how to identify the best countries is that we compare from continental/region based studies first before having been able to filter which are the countries prospect for study. When there has been an established representation of geopolitical areas, we can say so that we are comparing in fair grounds. After which, profiling the countries proven to be best in turning their trash to treasure can be pursued: the best ones were those which have a sustainable circulation, but moreover exhibits efficiency in their management like having least cost possible and having profitable or cost-lessening by-products. Like in the determining of which are the best, there is also a hurdle in narrating the experiences and economics of the deemed countries. IETC/UNEP sees the lack of cross-comparison in the global scale is because of localized changes in degree of development within each country, it is difficult to apply a single developmental category as far as solid waste management is concerned. For example, a large urban community (typically the capital city and surrounding area) in a developing nation may be in a stage of development that is well above that of the rest of the nation. On the other hand, these communities are not totally immune to the limitations imposed by the status of the nation ( IETC/UNEP, 2005, p. 1). The solution is adaptation of a parallel approach to the AIT/UNEPs study that presented the status-quo of the different aspects of Municipal Waste Management in 14 SEA and East Asian countries. To narrate having regions with not only different economic statures but let alone have differing definition on what 34 | International Experience and Economics of Solid Waste Management
SWM is: they made use of inclusion of economic instruments, technologies, partnerships, informative measures and awareness raising efforts, informal sector, stakeholder participation and capacity building. (AIT/UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 20). The real dynamics in the national state is an integrative solid waste management in work and thus the approach must also be an integrative analysis in sight. All in all, data needed in accomplishing the approaches that aimed to uphold international connecting of SWM experiences and economics were sources that would represent globally which continent/regions are in supremacy in SWM and also sources that would reflect the national state of those countries in terms of their finest practices in recent times or any important point in time where effective transition happened. Only by virtue of these could learnings from the most established currently in SWM could be integrated to the Philippine setting.
The methodology of data gathering includes the following activities: Crystallizing established international comparisons (e.g. international publications, international bodies agency reports, global news that have been affirmed through studies and other reports from relevant international economics-oriented organizations such as World Bank, Asian Development Bank, UNEP International Environmental Technology Centre, UNEP Asian Institute for Technology and others to determine which regions are leading in the global arena. 35 | International Experience and Economics of Solid Waste Management
Reviewing Municipal Waste screening/assessments/questionnaires already conducted by continental bodies soliciting comments/additional inputs from regions member countries and member partners to determine most excelling country in the determined region such as EU, EEA and European Commission. Gathering of existing information and data of targetive sources to our context such as those collected by 3RKH 9 , to have relevant analysis and have appropriation of application of the status-quo and issues on municipal waste management we are facing.
C. Scope and Limitations of the Study Thus the scope of the profiling of countries was derived to integrate the experiences from pre-waste generation up to the post which are: Waste Composition Waste Generation and Waste Transformation Along with the vital elements of ISWM: SWM Policies and economic instruments -This describes joint projects with partnerships between stakeholders. AIT includes national government and key players on Municipal waste management ( AIT/ UNEP: Regional Resource Center for
9 The purpose of 3RKH is to capture and share knowledge on 3Rs (reduce reuse and recycle) applications and good practices in waste management. This has been established through the Project Preparation Support for Livable Cities in Asia of the Asian Development Bank (ADB). 36 | International Experience and Economics of Solid Waste Management
Asia and the Pacific (RRC.AP), 2010, p. 24) and this is also what was looked into each determined country: it describes in a condense manner the economic instruments related to Municipal waste e.g. incentive subsidies, low-interest finance, tax exemption; disincentive fees, charges/fines at the national/local level ( AIT/ UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 20). Charges and fees can also be used as incentives to encourage good behavior and to discourage bad behavior. For example, the price of disposal can be increased and the cost of materials recovery subsidized to give people incentives to source separate. In some instances, fines can be used to discourage illegal dumping ( IETC/UNEP, 2005, p. 13). Indirect charges in some locations, charges for waste are linked to other public services that people are willing to pay for, such as water or electricity. Including waste charges in water and if present, sewer charges allows some cost recovery; studies have shown that water and electrical energy consumption are rough indicators of waste generation (IETC/UNEP, 2005, p. 12). Circulation of Waste Composition- As mentioned earlier, although the amount of waste generated may also cause a problem it must also be taken to account that its composition play a factor to how a country responds to waste management (Agamuthu, Fauziah, Khidzir, & Aiza, 2007). This section would show not only how much waste is produced but what comprises the total waste generated. Also it was delved on what kind of industries are the prime there so we can have an understanding of what is the economical context, therefore to derive easier which are applicable to our context. 37 | International Experience and Economics of Solid Waste Management
Facilities and Budget allocation Whenever there is available data on the existing technologies in the countries, it was mentioned along with the pragmatics. As in AIT it further illustrates the type of technologies used for municipal waste collection, segregation, treatment and disposal, and briefly discuss the level of technology: Imported, Local, Capacity (rate), etc. the municipalities have (AIT/UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 22). There is no costs breakdown from private companies since there is no data available but the ways in which SWM are funded and the prioritization given to it per nation is attempted to be depicted. Also processes, plants and other manifestations of the nations choice in waste management would also reflect costs and investments put into its holistic workability. By-products -ISWM is the application of suitable techniques, technologies and management programs covering all types of solid wastes from all sources to achieve the twin objectives of (a) waste reduction and (b) effective management of waste still produced after waste reduction (MUD, 2010, p. 9). Management of municipal solid waste involves (a) development of an insight into the impact of waste generation, collection, transportation and disposal methods adopted by a society on the environment and (b) adoption of new methods to reduce this impact (MUD, 2010, p. 5). Effective solid management systems are needed to ensure better human health and safety. They must be safe for workers and safeguard public health by preventing the spread of disease. In addition to these prerequisites, an effective system of solid waste management must be both environmentally and economically sustainable. 38 | International Experience and Economics of Solid Waste Management
Environmentally sustainable: It must reduce, as much as possible, the environmental impacts of waste management. Economically sustainable: It must operate at a cost acceptable to community. Clearly it is difficult to minimize the two variables, cost and environmental impact, simultaneously. There will always be a trade off. The balance that needs to be struck is to reduce the overall environmental impacts of the waste management system as far as possible, within an acceptable level of cost. The section of by-products of SWM could be begotten from an effective waste management system which includes one or more of the following options (MUD, 2010, p. 11): Waste collection and transportation. Resource recovery through sorting and recycling i.e. recovery of materials (such as paper, glass, metals) etc. through separation. Resource recovery through waste processing i.e. recovery of materials (such as compost) or recovery of energy through biological, thermal or other processes. Waste transformation (without recovery of resources) i.e. reduction of volume, toxicity or other physical/chemical properties of waste to make it suitable for final disposal.
The limitation is that analyses of the study may not be in Toto parallel because of some particular context differences but to acknowledge limit of comparative grounds is also a way of seeing what is to be specialized in our own milieu especially with the resources and economical condition we are in. At the 39 | International Experience and Economics of Solid Waste Management
same time, there are scope of meeting grounds in which no matter where the context is, are economically and environmentally valuable for stakeholders to have successful and sustainable SWM. Major Differing Points of Developing countries often: One theme that appears consistently throughout IETCs book is the enormously different conditions in which industrialized and developing countries must work to solve MSWM problems (MUD, 2010, pp. 15-16): Low labor costs and extreme shortages of capital, which together call for low-tech solutions to MSWM problems; A waste stream dominated by organic waste, which means that: a) Incineration is difficult unless undertaken in conjunction with a program that achieves source separation of organics, and b) Composting is especially important if large amounts of waste are to be diverted from landfills; a complex informal sector that is very active in the collection, separation, and recycling of waste; Significant mixing of industrial hazardous wastes with MSW; Few people who are adequately trained in solid waste management activities, and a high proportion of the urban population with low levels of education; and Inadequate physical infrastructure in urban areas, which makes collection of waste particularly difficult.
40 | International Experience and Economics of Solid Waste Management
At the same time, it should be recognized that there are also similarities between industrialized and developing countries with regard to MSWM issues: In neither case does the public want MSWM facilities near residential areas and, in both cases, the amount of waste being generated is increasing. In both industrialized and developing countries, adopting an integrated approach to waste management is important. Related to this, people throughout the world are recognizing the importance of waste reduction as the first stage of the waste management hierarchy and as an essential element of MSWM. (Ministry of Urban Development, 2010, p. 16) The following are externalities especially for developing contexts: Improving management capabilities -In many instances, particularly in developing countries, the greatest impediments to efficient and environmentally sound handling of MSWM issues are managerial, rather than technical (MUD, 2010, p. 16). Public involvement -The public can play a role in promoting efficient, financially sound, technically competent management of waste issues by demanding accountability from the MSWM system. Although in many countries the public has long grown accustomed to having low expectations of government, the pressing and very visible problems brought about by the absence of effective MSWM systems may inspire stronger demands for good performance from public managers and any private companies with whom they work. Information dissemination is important in achieving the goal of public involvement (MUD, 2010, p. 16). 41 | International Experience and Economics of Solid Waste Management
Special wastes -Special wastes are those types of solid waste that require special handling, treatment, and/or disposal. The reasons for separate consideration include (MUD, 2010, pp. 16-17): Their characteristics and quantities (either or both may render them difficult to manage if they are combined with typical municipal solid waste); or Their presence will or may pose a significant danger to the health and safety of workers and/or the public, to the environment, or both. These wastes are very different from each other, so they should be managed and handled separately if feasible. Typically, in developing countries, special wastes are set out for collection, collected, and/or disposed along with wastes from commercial businesses and residential generators. Ideally, these wastes should not enter the municipal solid waste stream, but quite frequently they do, particularly in developing countries (Ministry of Urban Development, 2010, pp. 16-17). In terms of the approach, there were no mathematical computations made although exemplars such as: EKC, ODIN-WR model, graphs and others were all utilized for effective deducing and deeper analyses when applicable. The key concern is to find out the economic value of what is considered waste already. Although economic benefit-cost analysis would be closer to find real net values recoverable from waste, this study focused instead on finding out how much financial value can still be recovered from one ton of garbage. The profits of the most successful countries have been standardized to USD. The last segment 42 | International Experience and Economics of Solid Waste Management
understood the Philippine solid waste circumstance and to promulgate what is applicable to our context.
D. Definition of Key Terms Waste Generation -The first of the six functional elements in the SWM system encompasses activities in which materials are identified as no longer being of value (in their present form) and are either thrown away or gathered together for disposal (IGES, 2005, p. 13). There is not much control of its incurring but could be influenced in the future by orientations such as IGES pointing reduction of waste at source, though not controlled by solid waste managers, is now included in system evaluations as a method of limiting the quantity of waste generated. Waste Handling, Sorting, Storage, and Processing at the Source -This is the next functional elements in the SWM. Waste handling and sorting involves the activities associated with management of wastes until they are placed in storage containers for collection. Handling also encompasses the movement of loaded containers to the point of collection. Sorting of waste components is an important step in the handling and storage of solid waste at the source (MUD, 2010, p. 13). Collection -The functional element of collection, includes not only the gathering of solid wastes and recyclable materials, but also the transport of these materials, after collection, to the location where the collection vehicle is emptied. This location may be a materials processing facility, a transfer station, or a landfill disposal site (MUD, 2010, p. 15). Sorting, Processing and Transformation of Solid Waste -The recovery of sorted materials, processing of solid waste and transformation of solid waste that occurs primarily in locations away from the source of waste generation (can be MRF, transfer stations, 43 | International Experience and Economics of Solid Waste Management
combustion facilities and disposal sites) are encompassed by this functional element. Sorting often includes the separation of bulky items, separation of waste components by size using screens, manual separation of waste components, and separation of ferrous and non-ferrous metals. Waste processing is undertaken to recover conversion products and energy. The organic fraction of Municipal Solid Waste (MSW) can be transformed by a variety of biological and thermal processes. The most commonly used biological transformation process is aerobic composting. The most commonly used thermal transformation process is incineration. Waste transformation is undertaken to reduce the volume, weight, size or toxicity of waste without resource recovery. Transformation may be done by a variety of mechanical (eg shredding), thermal (e.g. incineration without energy recovery) or chemical (e.g. encapsulation) techniques (MUD, 2010, p. 15). Transfer and Transport -The functional element of transfer and transport involves two steps: the transfer of wastes from the smaller collection vehicle to the larger transport equipment and the subsequent transport of the wastes, usually over long distances, to a processing or disposal site. The transfer usually takes place at a transfer station (MUD, 2010, p. 15). Disposal -The final functional element in the solid waste management system is disposal. Today the disposal of wastes by landfilling or uncontrolled dumping is the ultimate destination of all solid wastes, whether they are residential wastes, residual materials from Materials Recovery Facilities (MRFs), residue from the combustion of solid waste, rejects of composting, or other substances from various solid waste-processing facilities. A municipal solid waste landfill plant is an engineered facility used for disposing of solid wastes on land or within the earths mantle (MUD, 2010, p. 16). The highest rank of the ISWM hierarchy is waste minimization or reduction at source, which involves reducing the amount (and/or toxicity) of the wastes produced. 44 | International Experience and Economics of Solid Waste Management
E. Abbreviations and Acronyms ADB -Asian Development Bank AIT -Asian Institute of Technology CIPS -Chartered Institute of Purchase & Supply CIWM -Chartered Institution of Wastes Management DESA -Department of Economic and Social Affairs DTIE -Division of Technology, Industry and Economics EEA -European Environment Agency EKC -Environmental Kuznets Curve ETB -Economics and Trade Branch FAO -Food and Agriculture GEAS Global Environment Alert Service GEC Global Environment Center IETC -International Environmental Technology Centre IISD -International Institute for Sustainable Development IRP -International Resource Panel MDG -Millennium Development Goals MSW -Municipal Solid Waste MUD -Ministry of Urban Development OECD -Organization for Economic Cooperation and Development REAP -Resource Efficiency Action Plan SDS -Sustainable Development Strategy SWM -Solid Waste Management UN United Nations UNEP -United Nations Environment Program WB -World Bank WCED -World Commission on Environment and Development WRAP Waste & Resources Action Program
45 | International Experience and Economics of Solid Waste Management
IV. Results and Discussion
A. Identification of Countries with Most Advanced Experience in SWM The only cross-continental comparison that has been reported (and the most recent attempt) is that of the newsletter by EcoMENA 10 stating that, Currently, the European nations are recognized as global leaders of the SWM and WTE movement. They are followed behind by the Asia Pacific region and North America respectively (Zafar, 2014). The intentionality of the organization was to witness real activity in waste-to-energy sector in the Middle East but before looking specifically at Middle Easts scenario, they scoured over the global scenario and the following were the findings: In 2007 there are more than 600 waste plants in 35 different countries, including large countries such as China and small ones such as Bermuda. Some of the newest plants are located in Asia. The United States processes 14 percent of its trash in WTE plants. As at the end of 2008, Europe had more than 475 WTE plants across its regions more than any other continent in the world that processes an average of 59 million tons of waste per annum. In the same year, the European WTE industry alone as a whole had generated revenues of approximately US$4.5bn (Zafar, 2014).
10 EcoMENA's primary mission is to create mass awareness on renewable energy, sustainability, waste management, environment protection, energy efficiency and resource conservation in the Middle East and North Africa (MENA) region. Their major objective is to promote sustainable development worldwide. 46 | International Experience and Economics of Solid Waste Management
Most researches concentrated on waste management that analyze across continents just give out their data by clustering nations according to their level of income. The current status of waste management is by no means uniform in different parts of the world. For the purpose of showing these differences, it seems sensible to divide the globe into the following four geo-political areas ( ISWA, 2002): the European Union, the United States, other high and medium income countries and economically developing countries. Superimposing the element of representation from the different geopolitical areas to the identified top regions for SWM cross-continentally, we now can filter that the best countries would come from: Europe Asia United States BBC found interest in the big divide in Europes waste disposal performance. The UK gets one red flag for the category "existence of ban/restrictions for the disposal of municipal waste into landfills", a medals table for waste management shows red flags -the worst scores -dominating the results for Bulgaria, Cyprus, Greece, Lithuania, Malta and Romania, and the best performing countries - Austria, Belgium, Denmark, Germany, the Netherlands and Sweden - resort to landfill for less than 5% of their waste (BBC News Europe, 2012). Its most viable finding: The UK's overall score is 32, while Austria and the Netherlands top the table with 39 points each must be verified through other studies. 47 | International Experience and Economics of Solid Waste Management
Figure 1. Municipal waste recycling rates in 32 European countries, 2001 and 2010 (Rozenberg, 2013)
Figure 1 shows the recycling rates of MSW in the European Union in 2010 compared with 2001. A line further from the centre in the radar chart signifies better waste management. As the figure indicates, recycling performance has improved in most European countries. The general increase in recycling of municipal waste reduced the percentage of municipal waste landfilled (European Environment Agency (EEA), 2013). The European Commision conducted the Screening of Waste Management Performance of EU Member States which validates Austria and the Netherlands top the table with 39 points each. 48 | International Experience and Economics of Solid Waste Management
Table 1. Overview of scoring of each criterion and overall score for each Member State of EU (order according to achieved overall score) (European Commission, 2012)
With the rapid economic growth and urbanization that is taking place in Asia, solid waste generation and management is becoming a major social, environmental and economic issue. Complicating the picture, each country and region has its own 49 | International Experience and Economics of Solid Waste Management
background and characteristics in relation to solid waste management and material- cycles policy, even though they share the same global region (IGES, 2005). When countries or regions have laws governing waste management, solid waste and MSW are usually given specific definitions and IGES conducted a study on Waste Management and Recycling in Asia where the definitions in selected countries in Asia 11 were exhibited. In its year of publication 2005, Indonesia, Malaysia, and Thailand have no laws on waste management thus do not have official definitions of solid waste and MSW; India and Taiwan have definitions of MSW only (IGES, 2005). There was an already conceded general definition of MSW before which can be referred back set in a United Nations Conference on Environment and Development held in Rio de Janeiro in June 14, 1992, Solid wastes include all domestic refuse and non-hazardous wastes such as commercial and institutional wastes, street sweepings and construction debris (IETC, 2008). MSW primarily comes from households, but also includes wastes from industries, municipal services such as street cleaning and maintenance of recreational areas ( AIT/ UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 6). There is a collection of the recent working definitions of the 14 member countries in Southeast and East Asia which was collected by AIT 12 . However different the answers that Southeast and East Asian countries provided, Asian countries all have the common goal of 3Rs. The 3R Initiative was officially launched at the 3R Ministerial Conference hosted by the Government of Japan in April 2005, with an aim to promote global action on 3R. In March 2006, a
11 For further reading, a table of that can be found in the said IGES study 12 For further reading, a table of that can be found in the said AIT/UNEP study 50 | International Experience and Economics of Solid Waste Management
Senior Officials Meeting on 3R was organized in Japan resulting in strong commitment of governments and other stakeholders to implement 3R at local, national, and regional level (Visvanathan, Adhikari, & Anant, 2007). Besides Japan being the initiator of the template waste management is Asia, it is also the leader which was established by AIT Thailand.
Legend:
Table 2. Status in 3R implementation in developed Asian countries (Visvanathan, Adhikari, & Anant, 2007)
The identified best countries with the most advance experience in waste management are the following: Austria Netherlands Japan United States of America
51 | International Experience and Economics of Solid Waste Management
B. Narration of the Most Advanced Countries ISWM Profiles 1. Austria Waste Composition: Consumption of different materials result in products which later result to waste generation. Austria in the span of 2000-2007 has had its strongest material consumption of non metallic minerals which ranges at around 80 90 million tons (50.5%) compared to biomass, fossil energy and metal ores which ranges are 40 50 (26.7%), 20 30 (17.2%) and 10 15 (5.6%) million tons respectively (EEA, 2011, p. 4).
Figure 2. Austrias Vital Consumptions Conclusively by 2009, the sectors which hold the highest contributions to the GDP are its Services sector which holds 69.1%, the Industry sector which holds 29.4% and the Agriculture sector having 1.5% (EEA, 2011, p. 3). Household wastes result from product to waste consumption which would result to: Material Consumption non metallic minerals biomass fossil energy metal ores 52 | International Experience and Economics of Solid Waste Management
NATIONWIDE QUANTITIES BY INDIVIDUAL FRACTION QUANTITY (TONS) Residual waste 1 402 100 Biogenic waste and green waste 752 100 Waste paper 677 000 Bulky waste 259 100 Waste glass 211 600 Waste wood 183 200 Light fraction 148 100 Scrap metal household scrap (bulky waste collection) 86 800 Waste electrical and electronic equipment 72 600 Waste metals 30 600 Waste textiles 26 000 Hazardous household waste 23 200 Other recoverables 22 600 EST TOTAL 3,895,000 Table 3. Austrias Household Waste Components (EEA, 2011, p. 6)
Waste Generation: Production in its process consumes both energy and raw materials to produce certain products which results to waste. This means that a direct relationship between energy and material consumption and waste generation is established. Austria at an average has a GDP of 1100 USD per ton of Domestic Material Consumption (EEA, 2011, p. 5)having the trends of materials and energy similar in terms of its increases and decreases within 1970 2009 in an indexed development (EEA, 2011, p. 6). This all results to 48.6 million tons of waste per year by 2001 having construction residues a major part at 7.5 million t/a. At a more specific premise of MSWs, Austria in the span of 2001 to 2010 has had a 7% increase in MSW generation from 4.63 million tons to 4.96 tons respectively. 53 | International Experience and Economics of Solid Waste Management
Policies: With growing demands for production; energy and resource policies are made to regulate and increase efficiency. Voluntary agreements between economic sectors and government ministries are examples of these. By 2009 the Austrian Resource Efficiency Action Plan (REAP) along with several other strategies was drafted by 2009. These go by five core strategies to raise: awareness on resource efficiency in production, public procurement, development of secondary materials in an economy that circulates and synergies between stakeholders cooperating (EEA, 2011, p. 7).By 2010, the Austrian (SDS) was adopted with sustainable consumption and production patterns as its focus. This policy would then take a 4 year working program period from 2011 2015 (EEA, 2011, p. 8). Thus having regulated production and consumption, the next step for the Austrian government was to address the waste produced by both areas. Hence, the Waste Prevention program was published in 2011 as part of the Federal Waste Management Plan. This would then focus on the nations primary waste drivers (EEA, 2011, p. 8): the construction sector, industries and households, food sectors from food industries to households, and the reuse sector. These policies are then strengthened through the Austrian Strategy for the Education for sustainable development. This was made possible through the governments agreement among federal regions to inform consumption patterns in the educational programs. 54 | International Experience and Economics of Solid Waste Management
As early as 2005 the Austrian Federal Ministry of Transport, Innovation and Technology initiated the Austrian Program on Technologies for Sustainable Development which focuses achieving economic use of natural resources on buildings, energy systems and factories. The initiative would then promote financing of development projects to implementation of pilot projects (EEA, 2011, p. 10). Three program lines would then emerge these are: the Building of Tomorrow, which is aimed at using environmentally friendly and renewable materials in construction, the Factory of Tomorrow, aimed at zero-waste, zero-emission production and produces, and the Energy System of Tomorrow aimed at efficient, decentralized and renewables based energy technologies and systems (EEA, 2011, p. 11). With the REAP dealing with all material types the 2011 Waste Prevention would focus on construction materials, food and products with high pollutant and critical material contents (EEA, 2011, p. 9). In lieu of the economic policies given, Austria had to take into account producing environmental protection and preservation laws. Austrian policies regarding the environment are often characterized by the separation of responsibilities between the federal, regional and local levels. The REAP would then be developed to taking to account recommendations from different government sectors and other private stakeholders as well. This action is in regards to the large Industrial sector of the nation. This would then highlight the initiatives of the Ministry of Economy, the Federal Ministry of Agriculture, Forestry, Environment 55 | International Experience and Economics of Solid Waste Management
and Water Management and the Ministry of Transport, Innovation and technology as to achieving resource efficiency. The National Action for Sustainable Public Procurement of 2010 was then created to insure land buyers and owners would have a requirement of a minimum lifespan or a minimum share of 5% in recycled construction materials. The Ministry of Environment would then create the Masterplan Environmental Technologies to increase market shares in efficient, environmental friendly and environmental protecting technologies. Consequently with the economic policies regulating efficiency in the production sector this would result to higher MSW generation. Austria would first deal with landfills wherein all main legislations were to divert biodegradable MSW from landfills through banning and high tipping fees or tax and by its full implementation in 2004, land filled waste would be at an almost zero state by 2008 (EEA, 2013, p. 9). To avoid consequences from the landfill bans Austria, in accordance to the Federal Waste management plan of 2011, would extensively use 16 plants to treat waste which would result in 57.8% of biological waste treated, 40% incinerated, and 2.2% metal recycled (EEA, 2013, p. 10). Waste Transformation: At 2001 the Sei g scheit vermeid was launched, by the Federal Ministry of Agriculture, Forestry, Environment and Water management, to avoid and reduce waste. The project would provide information and guidelines to extending material durability. Waste collection for paper, glass, packaging waste and biogenic materials were set up country wide (UN, 2004, p. 4). This would soon extend to avoidance, 56 | International Experience and Economics of Solid Waste Management
collection and utilization of wastes as well including hazardous wastes from electrical and electronic equipment. With waste collection policies on the rise Austria moved forward to its management. The Plastics Labelling and PCP regulation for example, facilitates waste separation for recycling (UN, 2004, p. 3). This would apply to biogenic wastes as well. Waste transformation however must still be regulated. The Clean Air Regulation for example subjects thermal treatment plants to regulate its emissions. Landfills as well are obligated to be built accordingly by the Landfill Regulation (UN, 2004, p. 3). Legislations have been passed by Austria to minimize pollution in the waste streams transformation which scales from labor to sector-specific strategies. Enterprises for example with more than 100 employees are required to appoint waste management officers. A similar policy applies to larger companies which are required to draft their own waste-management plans in accordance to the Waste Management Act. To strengthen the institutional capacity in waste management sectors the policy is revised every three years (UN, 2004, p. 3). 2. Netherlands Waste Composition: With a high percentage of its GDP composition to services, at 73.2%, seconded by industry, at 24%, and agriculture at 2.8% (Index Mundi, 2013). The Netherlands would have the bulk of its occupational force to its services. Taking to account Netherlands material extraction which has fossil fuels shares at 41% by 2012 (European Comission, 2011, p. 12), which heavily relies on import trades 57 | International Experience and Economics of Solid Waste Management
within the EU, natural resources within the country cannot meet domestic demand. Despite its physical trade deficit the Netherlands still creates a monetary trade surplus. The Dutch economy could therefore be characterized for its ability to turn cheap bulk materials into expensive products (European Commision, 2012, p. 5) with the costs of high imports of energy carriers via fossil fuels holding up at around 200 billion kilograms by 2011 (European Commision, 2012, p. 7). Conclusively, waste composition, in comparison to other countries, would be by products of producers and manufacturers. Household waste compositions however would result to:
Figure 3. Netherlands Household Waste Components
Waste Generation: By 2011, the Netherlands would have produced 9 930 000 tons of municipal waste which would be 600kgs per capita (OECD, 2013). However, it must be taken to account that Europes forerunner in recycling is the Netherlands having recycled 51% of the MSW generated (EEA, 2013, p. 7). 58 | International Experience and Economics of Solid Waste Management
Policies: In accordance to the EU Landfill Directive, member states are required to reduce, if not avoid, amounts of biodegradable MSW with certain percentages of reduction by 2006, 2009 and 2016 (EEA, 2013, p. 9). As early as 1995 the Netherlands would have banned over 35 waste categories for land fill disposals which includes all combustible and biodegradable waste. Over the course of 2006 2010 the Netherlands would have significantly reduced land filling to 8% surpassing the EU standards of 2016 by 2006 alone. By 1997 the Dutch government would have shifted waste management responsibility from provincial levels to central the change would have come into force by 2002 via the Environmental Management Act amendment (EEA, 2013, p. 5). By 2009, the National Waste Management Plan, which has a period of 2009 2015, would have a focus of (EEA, 2013, p. 5): Limiting growth in waste generation (decoupling from the economic growth) Reducing the environmental impact of waste (optimizing recovery and re- use) Minimizing environmental impacts from product chains (raw material extraction, production, waste management) Division of responsibilities is still present though. Provincial level examples are the licensing and monitoring of waste treatment facilities both incineration and landfills alongside regulation of waste prevention in individual licenses (EEA, 2013, 59 | International Experience and Economics of Solid Waste Management
p. 6). Municipalities on the other hand are obligated to collect organic household wastes at a door to door level within jurisdictions (EEA, 2013, p. 6). A strong driver in MSW diversion from landfills has come from the Netherlands policies concerning land fill banning and taxation having high tipping fees for combustible wastes and lower taxing for wastes which have no other alternatives for recovery (EEA, 2013, p. 12) .Other drivers such as the first National Waste management plan of 2002- 2012 which bans mixed MSW from landfill disposal have also increased reduction. On a regional level though, organic recycling has had big differences. Drenthe as the best performer compared to South Holland, the worst performer, would have a 20% discrepancy. But an explanation could be derived taking to account that Drenthe, mainly a rural area, where organic wastes are expected to arise therefore organic waste management policies have been better developed comparing to South Holland, an urban region (Netherlands MSW pg10). It must be observed however that there are only two methods heavily enforced and instituted in the Netherlands; recycling and incineration. Waste Transformation: As early as 1993 the Waste Incinerators Decree regulated incinerating plants for domestic waste and commercial waste of similar composition. The said act regulated atmospheric emissions, combustion processes, monitoring and record keeping. The same year the Building Materials Decree created standards for quality secondary raw materials produced from waste. Same standards to regulate organic 60 | International Experience and Economics of Solid Waste Management
fertilizers and organic halogen content were legislated. Landfill despite banning dumping on them had its own Soil Protection Act (CIWM, 2005, p. 3). By 2000 92% of local households had separation collection for organic waste which resulted to 1.57m tons to be processed into 600 000 tons of compost.. National policies would have been legislated to collect organic components separately and to directly convert them, if possible, to energy. By 2001 26 composting plants for bio wastes would be operational having 1.577 tonnes capacity. In accordance to the Environmental Management Act, waste management would be derived from the Lansinks Ladder which mechanisms operate on 7 levels (CIWM, 2005, p. 3): Prevention Design for prevention and design for beneficial use Product recycling Material recycling Recovery for use as fuel Disposal by incineration Disposal to landfill 3. Japan Waste Composition: Japan, being the largest consumer of paper in global standards consequently has its MSW composition at 50% paper seconded by their food wastes, plastics, 61 | International Experience and Economics of Solid Waste Management
others and waste at 20%, 15%, 4%, 2%, 1% respectively. Waste composition in Japan is heavily influenced by their lifestyle as well which is the primary cause of their high paper consumption which makes them the only Asian country whose waste composition isnt dominated by organic waste (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 19).
Figure 4. Japans MSW Composition Waste Generation: By 2003, Japan would have produced 52,000,000 tons where 19.6% are MW ( AIT/ UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 8). The composition of MW in advanced countries is highly inorganic and non- recyclable while cities of developing Asian countries, MW is generally organic and recyclable ( AIT/ UNEP: Regional Resource Center for Asia and the Pacific (RRC.AP), 2010, p. 8). Waste composition in Asian countries except Japan is dominated by organic waste, comprising approximately 75% of the total waste stream (Agamuthu, Fauziah, Khidzir, & Aiza, 2007, p. 20). Waste Compostion Paper Food Wastes Plastics Other Waste 62 | International Experience and Economics of Solid Waste Management
Policies: By 2000, Japans introduction of the soundmaterialcycle society which by 2008 would have been finalized and enacted. With the approval of the Central Environment Council and the public the Sound Material Cycle Society Plan would focus on 7 key elements (GEC, 2012, p. 10): Create a sound material-cycle society on the premise of environmental protection. Make an integrated effort to create a sound material-cycle, low-carbon and eco-friendly society. Construct a local recycling zone that contributes to local community revitalization. In addition to enhancing numerical targets, introduce auxiliary and monitoring indicators. Pursue the 3R approach to ensuring collaboration among stakeholders. Improve the levels of 3R techniques and systems. Ensure Japans leading role in internationally creating a sound material-cycle society. Having undergone 4 major revisions from 1976 2000 the Waste Management Law was institutionalized to (GEC, 2012, p. 13): Prevent waste generation 63 | International Experience and Economics of Solid Waste Management
Promote proper waste management (transportation, disposal and recycling) Maintenance of clean living environment In strengthening the reduction of waste, by June 2000, the Law for Promotion of effective Utilization was revised since its effect on 1991. The Law forwards the responsibilities of stakeholders and the government in attaining the Sound Material Cycle objectives. These responsibilities would be (GEC, 2012, p. 13): Consumers to expand product use before disposal and to facilitate the use of reusable parts and resources and to help national and local governments in enacting the law. Businesses are encouraged to use secondary raw materials recovered in waste plants and to recover reusable parts with their goods. National government shall take all necessary measures of funding for facilitation and efficient resource consumption. Promote research and development activities and to improve information dissemination amongst the citizens. Waste Transformation: The beauty of Japans policies is not only its reactive nature, but pre-emptive nature as well. The Waste Management Law for example regulates Industries as well to reduce its pollution and increase productivity in its waste treatment and transformation. Resource reutilizing industries for example are regulated for their 64 | International Experience and Economics of Solid Waste Management
paper, glass, construction and copier manufacturing. The same regulation would apply to products as to assure increased use and decreased pollution in its recovery and repair (GEC, 2012, p. 18). This would extend to retailers and manufacturers; that the products they sell and distribute will have their extended responsibilities from transportation to its recycling (GEC, 2012, p. 25). Food industries however are divided in the sizes of production they make. Large industries would have more processes to undergo to assure resource recovery and material efficiency. The same would apply to construction related materials. Under the Construction Material Recycling Law, constructions and demolitions must first meet standards before proceeding with their operations; constructions or demolitions must have standard sizes for example thus they are required to classify and transport any waste materials yielded from their said operation. Concretes for example must be transported to crushing facilities to recover raw materials (GEC, 2012, p. 33). Waste transformation has led to two primary results; alternative energy and secondary raw materials. Austrias energy consumption has its recyclables produce 25.3% of its total. This results from their national objectives to increase total efficiency on industries and buildings in accordance to the 2007 Austrian Climate Change Strategy (EEA, 2013, p. 10). Same strategies have been seen in the Netherlands, USA and Japan. Although, it is only in Japan that material recovery and energy recovery is developed extensively.
65 | International Experience and Economics of Solid Waste Management
4. United States Waste Composition: By 2009, the USA has generated 243 million tons of MSW; this is broken down by the Environmental Protection Agency (EPA) into two categories: material and product based categories (EPA, 2009). Paper and paperboards make 28.2% having it the largest followed by food scraps at 14.1%, yard trimmings at 13.7%, Metals, plastics and wood had 6 13%, rubber, leather and textiles at 8.3%, Glass at 4.8% having the remaining 3.5% composed of miscellaneous waste (EPA, 2009, p. 7).
Figure 5. US MSW Composition Product categorized waste in 2009 would be largely composed of containers and packaging holding 29.5% of the total product categorized MSW, seconded by Nondurable goods at 22% and durable goods at 19.2% (EPA, 2009, p. 8). Material categorized MSW however are composed largely by food scraps at 14.1% seconded Waste Composition Paper and Paper Boards Food Scraps Yard Trimmings Metals, Plastics and Wood 66 | International Experience and Economics of Solid Waste Management
by yard trimmings at 13.7% letting the remaining 1.5% be composed of other wastes (EPA, 2009, p. 8). Waste Generation: Although studies prove higher GDP means higher waste generation. The USA, however, compared to other developed countries, clearly generates more waste (Themelis & Mussche, 2013, p. 2). Waste generation has had a steady increase since the 1960s, from 88 million at a 2.68 pound generation per person per day, by 1980 it had increased to 3.66 pounds ppppd reaching its peak at 4.72 ppppd in 2000 thus decreasing to 4.67 ppppd in 2005 (Themelis & Mussche, 2013, p. 5). It has been on the decreasing trend ever since. By 2009, generation rate would be at 4.34 ppppd. Policies: It must be taken to account that the USA handles waste management policies on a state level rather than on a federal level (Themelis & Mussche, 2013, p. 2). This is due to (Themelis & Mussche, 2013, p. 23): The variation in climate Differences in scope of waste streams Variance in per capita of products Levels of commercial activity Variations of economic activity in residential, commercial and industrial sectors 67 | International Experience and Economics of Solid Waste Management
However, the Environmental Protection Agency (EPA) in order to standardize a national police has institutionalized the Resource Conservation and Recovery Act (RCRA) in order to standardize types of waste to be landfilled, treated, or recycled. The EPA policies would then have 4 major focuses in waste management strategy that state policies adhere to, these are (EPA, 2009, p. 148): Source reduction or prevention, including reuse of products and on- site composting of yard trimmings Recycling, including off-site or community composting Combustion with energy recovery Disposal through landfilling These would ultimately reduce MSW generation. EPA would align its policies on waste prevention by regulating product design, manufacturing, purchase, or use of materials including packaging to reduce their amount of toxicity before becoming MSWs (EPA, 2009, p. 150). Other actions taken would include redesigning products to use lighter materials in its manufacturing and to lengthen product lifespan, reduction of product and packaging amount used in modifications to change current practices of producers and consumers etc. On a more specific detail, the Composting Council as well as other sources in 1992 report 12 states (28% of USAs population) had in effect legislations to regulate yard trimmings which, by 2009, has increased to 23 states (50% of USA) (EPA, 2009, p. 155). 68 | International Experience and Economics of Solid Waste Management
Waste Transformation: Before treatment of recyclables, waste must first be collected. In legislative terms the USA has developed the Curbside Recyclables Collection (EPA, 2009, p. 156), which has over more than 9000 collection programs. However, to regulate collected waste a Pay-As-You-Throw policy is in effect as well which requires higher fees for higher volumes of waste generation (EPA, 2009, p. 155). In development of the Curbside collection programs, which traditionally require residents to sort materials before it is collected, would soon trend toward a single stream program which would result to avoiding sorting of citizens. By 2007 the American Forest and Paper Association found that around 50% of the collection programs have shifted to a single stream. The programs however require materials to be taken to a materials recovery facility (MRF) for processing.
C. Recognition of Returns from Effective ISWM 1. Revenues from Policies on Waste Collection and Transportation and/or Policies on Waste Transformation without Recovery of Resources: Taxes Austria On the span of 1995 to 2010, Austrias profit from the revenue of landfill taxes have increased steadily. Although the peak of taxation was at 2010 having $120 per ton of land fill waste the peak of revenues occurred at 2003 reaching a 69 | International Experience and Economics of Solid Waste Management
peak high of 96.8 million estimating to almost $125 million. From 1995 to 2010 Austria has earned a staggering $1.2 billion in landfill taxes alone (UV & P, 2012). Netherlands In the same trend with Austrias decline within landfill disposal has been the steady trend in the recent years. The Netherlands, however, has had its peak at 2001 being the first to integrate such policy having to collect over 180 million by that year alone collecting at an estimate of 127 per ton or $177.80 having 1 euro: 1.36968 USD or around 1.40. On a cumulative note from 2000 to 2010, the Netherlands would have amounted to 1.504 billion or around $2 billion (ETC/SCP, 2012, p. 60). Japan Waste management policy on the Japanese economy of Okushima and Yamashita used a multi-sector applied general equilibrium model named ODIN- WR 13 which structured based on the Harberger-Scarf-Shoven-Whalley model. This is because the analysis considers the introduction of a nationwide industrial waste tax that serves to promote waste reduction and recycling with which the scope is on the industrial waste. The tax revenue is assumed to be recycled to the government expenditure. The condition before the policy which is called the Business-as-Usual or BaU Case represents the situation of the Japanese economy in the base year, 1995 wherein the tax is imposed on industries in proportion to their waste discharge
13 The multifactorial mathematical models structure can be found at the journal for further studies on page 114 70 | International Experience and Economics of Solid Waste Management
(recovery) per unit (Okushima & Yamashita, 2005, p. 119). In primary industries (primary goods), lower production leads to reduced waste discharge but for secondary industries (secondary goods), increased production contributes to increased waste recovery (negative waste discharge) hence, production has opposite effects on waste discharge in primary and secondary industries (Okushima & Yamashita, 2005, pp. 119-120). Their waste tax is defined by making efficient of holding the waste tax levied on primary industries in proportion to their waste discharge per unit and recycling subsidy (negative tax) given to secondary industries (secondary goods) in proportion to their waste recovery (negative waste discharge) per unit (Okushima & Yamashita, 2005, p. 120). Japans tax rate is more sophisticated than other countries then that impose tax as blanket scale to industries as general; they understand difference in scale of different industries. Figure 6 indicates that, for a xed elasticity, the higher is the reduction rate, the higher the tax rate needed. As an example of depiction by Okushima & Yamashita: given an elasticity of 0.3, the tax rate needed to achieve a 1% reduction in nal waste disposal is 290. For reductions of 4% and 8%, respectively, tax rates of 940 and 1,460 are needed (Okushima & Yamashita, 2005, p. 120). Yen to dollar is 0.00983 or near 0.01, 1% reduction in final waste would yield saving of about $9.40.
Figure 6. Relationship between the Waste Tax Rate, the Elasticity of Substitution and the Final Waste Disposal Reduction Rate 71 | International Experience and Economics of Solid Waste Management
It is important to include the authors note that studies like that of Washida on 2004 that is able to regard that the tax is levied on nal waste disposal and not simply on waste discharge (Okushima & Yamashita, 2005, p. 120). The more industries reduce, reuse and recycle then, the less they get taxed. USA USA has variations on their landfill taxes due to the different states legislations about the said tax. But on the average considering both private and public sectors in charge of tipping fees in landfills, the USA in the course of 1985 1995 has had a steady increase of $2.40 per ton each year. In the initial 1985 fee which was at 8.2 dollars it has reached $32.19 per ton at 1995 before hitting its first decline in a 10 year trend. This increasing trend was credited to the implementation of the Resource Conservation Act which regulated each states landfill fees. By 2000 the average tipping fee would have been $32.19 which again had a similar trend in the 8595 timeframe increasing at $1.62 per ton per year. But this trend would be already credited to rising fuel costs (NSWMA, 2008, p. 3). In totality of its earning in 2009, the 50 states of US would have amassed 45 396 870 tons of waste in landfills which would have been cumulatively generated $ 1 997 008 311 in 2009 alone. 2. Revenues from Resource Recovery through Sorting and Recycling Austria and Netherlands European Statistics gives the most recent prices of the top recyclables in their area which are the following: 72 | International Experience and Economics of Solid Waste Management
Glass -The highest monthly price was observed in April 2008 at approximately 54 /tones while the most recent reported prices from January / February 2009 were still above the previous years, with prices of 49-51 /tons (European Commission, 2011). $70/ton then can be earned from glass as of 2009. Paper and Board - From October 2008 the price declines from approximately 122 /tons to 74 /tons in February 2009 and since then, the price has increased dramatically (doubling in just over a year) and has reached over 150 /tons since September 2010 (European Commission, 2011). $210/ton then can be earned from paper and board as of 2009. Plastics - The price of plastic waste depends on two factors: the supply and demand of plastic waste material and on the crude oil price which strongly influences the price of the virgin (primary) material (European Commission, 2009). From a high of approx. 375 /tons in October 2008 a sharp decline to a price of approx. 230 /tons in January 2009 is observed and since then, recovered steadily to 300 /tons by the end of 2010 wherein finally, the trade volume appears to recover very quickly but the price much more slowly (European Commission, 2009). $420/ton then can be earned from plastics as of 2010. Japan Recycled resin or recycled plastic goods are produced from 2.17 million ton of waste plastics and around 1.6 million ton of waste plastics are exported which are considered to go to mechanical recycling, meaning the difference of 600,000 ton is the feedstock for recycled resin in the domestic market (Kodera, 2012, p. 210). 73 | International Experience and Economics of Solid Waste Management
Many Japanese manufacturers avoid the use of recycled resin, especially from mixed waste plastics of containers and packaging because of the low quality such as strength, color and smell so the selling price of recycled resin pellets (typically, a mixture of polyethylene and polypropylene) from the mixed waste plastics is generally very low, 20-40,000/ton or $200-$400, whereas the recycling cost of mixed waste plastics is 72,000/ton or $720 in average due to the contamination of various components (Kodera, 2012, pp. 210-212). The recyclers convert the separated portion of mixed waste plastics into recycled pellets or recycled products such as transportation pallets and imitation wood at about 45 wt%, and the rest goes to incineration with heat recovery or solid fuel production with paying gate fees (Kodera, 2012, p. 212). More than plastics, Japan favors recycling metals. The breakdowns of the general scrap metal rates are as follows: Scrap Metal Value in Yen/kg 14
14 Move values to thousandths for USD valuation since a yen is equivalent to 0.00983 or 0/.01 74 | International Experience and Economics of Solid Waste Management
Gun metal cutting powder
525 Gunmetal (bronze) 534 Gunmetal included (brass) 519 Includes Copper 629 Lead 136 Ordinary copper 530 Pig Lead 283 Printing plate 158 Reduction of copper powder 636 Sash - A (refers to scrap of window) 152 Secondary Aluminium Ingot 99 Perc. 219 Tin Metal 2480 Wheels - A 181 Yellow Brass Red Turning 482 Zinc alloys 54 Zinc Metal 247 MEAN VALUE 467 Table 4. Japans General Scrap Metal Rates (RecycleINme, 2014)
Lastly, Japan is exclusively the one who is most efficient in furniture and appliances recycling. These are the top recycled and their respective fee equivalent: 75 | International Experience and Economics of Solid Waste Management
Table 5. Governments General Income per unit Furniture/Appliance Recycled (Tokyo Lease Corporation, 2013) USA The organization As You Sow conveniently combines different EPA data on municipal solid waste and presents the predetermined industry averages available: MATERIAL WEIGHT RECYCLED (in million tons) 15
$ AVERAGE MARKET VALUE/TON 16
$ TOTAL AVERAGE MARKET VALUE 16 Paper 9.87 $235.300 $829,760,000.00 Glass 6.66 $4.890 $52,680,000.00 Steel 0.77 $448.335 $345,217,950.00 Aluminum 1.15 $2730.000 $3,139,500,000.00 Plastics 10.81 $1050.000 $11,350,500,000.00 TOTAL 29.26 $15,717,657,950.00 (Total market value would be at least
15 As You Sow cites Statistics taken from the U.S. Environmental Protection Agency (EPA)s most recent report on Municipal Solid Waste issued in January 2011. 16 The commodity prices used were the most current, available U.S. prices for the lowest and highest valued material within a class of materials as of March 31, 2011. Where industry averages were available, such industry averages were used. For more details on each materials average market value/ton, it is cross-referenced at As You Sows research page 2. 76 | International Experience and Economics of Solid Waste Management
$23,851,840,000.00 if considering only the highest valued materials amongst paper, glass, steel, aluminum, and plastics) Table 6. US Commodity Market Value of Discarded Recyclable Waste (As You Sow, 2011, p. 1) It is important to note that among the plastics recycled, plastic bags are a major contributor yet plastic bag recycling programs in the US remain an underdeveloped area with great potential growth as every year, Americans use approximately 1 billion shopping bags annually creating 300,000 tons of landfill waste (Clean Air Council, 2009). In California alone, plastics represent 9.5% by weight, or 3.8 million tons, of the total solid waste disposed in California, and plastic trash bags alone represent 1%, or 390,460 tons, of the total solid waste disposed in California (California Department of General Services, 2011). The state of California spends about 25 million dollars sending plastic bags to landfill each year, and another 8.5 million dollars to remove littered bags from streets (Californians Against Waste, 2013). 3. Resource Recovery through Waste Processing: Organic Wastes (Composting/Fertilizers) Austria and Netherlands Around 2 million tons of compost was commercially produced in 2005-2006 in European region wherein approximately half was sold to end users, a third was used on the site of production and the remainder was distributed free of charge and 77 | International Experience and Economics of Solid Waste Management
despite the rapid growth in the production of compost over the past five years, these proportions do not appear to have significantly changed (WRAP, 2008, p. 4). The multi-sectorial organic waste usage is encouraging evidence that the markets for higher value composting products have grown in line with the rapid growth in composting, but on the other it points to an ongoing reliance on gate fees and a continued perception that compost has little value (WRAP, 2008, pp. 4-5). For those products that are sold, prices vary according to the grade of compost: ex- works prices for loose compost typically range from around 3 per m3 for 0-40 mm grade composts to 12 per m 3 for finely graded (0-5mm) composts and having an average bulk density of compost around 500kg/m 3 implies a price range of 6 to over 20 per tone (WRAP, 2008, p. 5). The value of compost as a replacement for inorganic fertilizer is estimated to be around 5 per ton which is a key to massive savings since chemical fertilizers and soil improvers are known to have historically high levels of price and in the second half of 2007, prices in that area rose by almost 50 percent (WRAP, 2008, p. 5)! Waste and Resources Action Programme traced the increase to have been driven in part by the increase in the prices of natural gas which is the main feedstock for ammonia-based fertilizers but it also reflects strong world demand for fertilizers because it foresees, although new ammonia capacity is expected to become operational in the year ahead, prices are expected to remain strong (WRAP, 2008, p. 5). Therefore against this backdrop, higher usage of compost in agricultural applications as an alternative source of nitrogen has the potential to 78 | International Experience and Economics of Solid Waste Management
offer significant cost savings as evidently shown in those that already believed and pursued making waste fertilizers: bagged retail composts range in price from around 50 per ton for multipurpose compost to over 1,000 per ton for specialty blends (WRAP, 2008, p. 5)! Japan The aforementioned ODIN-WR model which Okushima and Yamashita followed to have a general equilibrium analysis of waste management in Japan is able to take account of the different industrial and energy sectors of the country which are abbreviated for convenience:
Table 7. Industrial and Energy Sectors in ODIN-WR model (Okushima & Yamashita, 2005, p. 115)
They are able to compute how many tons per sector recycled yield 0.1 billion which is amassing to almost $10 million per different sectors of waste they recycle: 79 | International Experience and Economics of Solid Waste Management
Table 8. Waste Discharge and Recovery Coefficient by ODIN-WR model (Okushima & Yamashita, 2005, p. 119) US The market for compost is increasing in demand. The University of Georgia is able to determine that 16 million tons of commercial organic waste may be composted which are produced by just by the sectors of supermarkets, restaurants, and schools. Source separated food scrap compost is generally higher in nutrient value and lower in contamination than most other types of compost, thus making it more valuable in the market that reflects composts from source-separated feedstocks having the highest average revenue per ton at nearly $40 and others such as compost from yard trimmings has a value of $32 a ton and municipal solid waste compost has a value of $3 a ton (University of Georgina: College of Agricultural and Environmental Science; College of Family and Consumer Sciences, 2012, p. 7). 80 | International Experience and Economics of Solid Waste Management
Resource Recycling Journal is cited by the University of Georgina in mapping out different strategies in organic waste recycling/composting and the revenues and profits that could be attained from each:
Table 9. US Organic Waste Recycling/Composting Strategies Revenues and Savings (University of Georgina: College of Agricultural and Environmental Science; College of Family and Consumer Sciences, 2012, p. 8) 4. Resource Recovery through Waste Processing: Energy Considering the top sources of converted energy sources an obvious valuation could be achieved. Oil for example has a potential of generating 42 MJ/kg but is seconded by Plastics having a potential energy generation of 40 MJ/ kg. Considering the transformation of these sources to proper energy, plastics seem to be more efficient sources for energy. Oil, taking to account all kinds of burning oil plants, it achieves an energy utilization of 60% at best comparing to the Co generation Incineration plants which averages at 80% energy utilization. But to take on a broader perspective on how renewable energy sources from wastes are far more efficient that conventional sources we must standardize the terms within the global arena (UV & P, 2012). 81 | International Experience and Economics of Solid Waste Management
Popular forms of energy such as coal and oil have had a steady hold of the top energy kinds used within the global arena but ever since its rise in the 80s the renewables exclusive of the biofuels have held an increasing trend. Although oil has remained the top consumed fuel around the globe having 33.1% of the global energy consumption (BP, 2013, p. 42) it must be taken to account that its market share has had a declining trend for 13 years now. In a breakdown within the four discussed countries oil would have these percentages in world consumption under the standards of stock changes, non petroleum additives and substitute fuels 17 (BP, 2013, p. 6): Austria 0.3% at 1 883 810kg/day by 2012 Netherlands 1.1% at 6 838 890kg/day by 2012 Japan 6.3% at 34 553 620gk/day by 2012 USA 19.9% at 136 008 150kg/day by 2012 Compared to renewable energies including biomass and waste under the standard conversion of thermal energy at a 38% conversion efficiency in a modern thermal station, assuming the terms in its oil equivalent (BP, 2013, p. 39): Austria 0.7% at 1.6 million tons by 2012 Netherlands 1.2% at 2.7 million tons by 2012 Japan 3.4% at 8.2 million tons by 2012
17 Converted from barrels to kilograms 82 | International Experience and Economics of Solid Waste Management
USA 21.4% at 50.7 million tons by 2012 Comparatively, having a ton of oil produce 12 megawatt-hours (BP, 2013, p. 44), assuming it is at 100% efficiency, the renewable sources could achieve the same output at 38% efficiency. Therefore, the savings provided by thermal stations or treatment plants rate at 62% relative to the price of electricity per country. Therefore the savings of any WTE can be computed as follows: Price of electricity in the country x .62 = savings. If they would shift their primary source of energy to renewable, we were able to stage how much the four countries save in terms of energy these would be at: Austria - 0.197 /kWh electricity rate as of latest data which is on December 2013 (Eurostat, 2012) so they save USD 122.14 cents or around $1.22/kWh Netherlands - 0.184 /kWh rate as of latest data which is on December 2013 (Eurostat, 2012) so they save USD 114.08 cents or around $1.15/kWh Japan - around USD 19 cents/kWh electricity rate as of 2013 in average (Wilson L. , 2013) would save USD 11.78 cents/kWh. USA - USD 11.72 cents/kWh is the average electricity rate of its states (Wilson L. , 2013) so they save about USD 7.2 cents/kWh.
83 | International Experience and Economics of Solid Waste Management
D. Possible Application of Advance Country Experiences to Philippines 1. Philippine Scenario and Efforts on Waste and Waste Management Philippine economic standpoint today is a society in transition: the dominance of agriculture is giving way to an merging semi-commercial, semi- industrial country; feudal relations of production are giving way to a semi- capitalist society and the following are some indications of this transition: media penetration of the most rural areas, capitalist intrusion into the countryside, replacement of subsistence economies by the cash economy, land conversion to non-agricultural uses, the shift by farmers to non-farming jobs, urban migration and the spread of corporate farming (Philippine Greens, 1999, pp. 24-25). Because the Philippines is going through a transition process from semi-feudalism to semi-capitalism, it is beset with a complex web of old and new problems. The following basic problems are the key links in this complex web: malgovernment, concentration of wealth, nature-abuse, toxic capitalism, chronic violence, culture-aggression and globalization (Philippine Greens, 1999, pp. 26-27). We can observe that these problems have monetary and power interplay cause and its effects are not just of societal backlash on stability in welfare but also in its basic environmental conditions. In its economic structure it is similar to the public sector in many developing countries that are unable to deliver services effectively, regulation of the private sector is limited and illegal dumping of domestic and industrial waste is a common practice. In general, solid waste management is given a very low priority in these 84 | International Experience and Economics of Solid Waste Management
countries. As a result, very limited funds are provided to the solid waste management sector by the governments, and the levels of services required for protection of public health and the environment are not attained. The problem is acute at the local government level where the local taxation system is inadequately developed and, therefore, the financial basis for public services, including solid waste management, is weak (UNEPs ETB, 2001). EKC principles can be used to determine turning points in the Philippines. The solid waste problem is most serious in urban centers, particularly in Metro Manila as data shows. This coincides with EKC analysis that those with the high population density and the high consumption rates are likely to have a downturn on environmental measures. Additionally, it being the capital city it is the concentration of packaged goods, some of which are made with raw materials that are toxic and non-biodegradable.
Figure 7. Projection of Waste Generation in the Philippines (EMB-DENR, 2010)
The 2007 figures showed that the National Capital Region (NCR) has the highest waste generation at 2.86 million tons per year, followed by Southern Tagalog and Central Luzon at 1.69 million tons and 1.21million tons, respectively. 85 | International Experience and Economics of Solid Waste Management
In terms of conceiving economic instrument to culminate a sound waste management, there is an act providing for an Ecological Solid Waste Management Program 18 which more specifically aims to create necessary institutional mechanisms and incentives, declaring certain acts prohibited and providing penalties, appropriating funds therefore and for other purposes. Its general provisions are (EMB, 2000): (a) Ensure the protection of public health and environment; (b) Utilize environmentally-sound methods that maximize the utilization of valuable resources and encourage resources conservation and recovery; (c) Set guidelines and targets for solid waste avoidance and volume reduction through source reduction and waste minimization measures, including composing, recycling, re-use, recovery, green charcoal process, and others, before collection, treatment and disposal in appropriate and environmentally sound solid waste management facilities in accordance with ecologically sustainable development principles; (d) Ensure the proper segregation, collection, transport, storage, treatment and disposal of solid waste through the formulation and adoption of the best environmental practices in ecological waste management excluding incineration; (e) Promote national research and development programs for improved solid waste management and resource conservation techniques, more
18 R.A. no. 9003 86 | International Experience and Economics of Solid Waste Management
effective institutional arrangement and indigenous and improved methods of waste reduction, collection, separation and recovery. (f) Encourage greater private sector participation in solid waste management; (g) Retain primary enforcement and responsibility of solid waste management with local government units while establishing a cooperative effort among the national government, other local government units, non-government organizations, and the private sector; (h) Encourage cooperation and self-regulation among waste generators through the application of market-based instruments; (i) Institutionalize public participation in the development and implementation of national and local integrated, comprehensive and ecological waste management programs; and (j) Strengthen the integration of ecological solid waste management and resource conservation and recovery topics into the academic curricula of formal and non-formal education in order to promote environmental awareness and action among the citizenry.
In 2004, a total of 103 cities representing 94% of the total 109 had organized their SWMBs in accordance with the provisions of RA their SWMBs in accordance with the provisions of RA 9003. Of this number, however, only 49 cities or 44% had effective SWMBs (Torres, 2004) . The problem is enactment for its implementation is not felt on a national scale. It is not known whether it is because of lack of information dissemination or lack of concrete sanctioning and/or incentivizing. 87 | International Experience and Economics of Solid Waste Management
Although carrying over the decree was practiced more on barangay/ municipality prerogative or private institution-initiated projects. Example of a municipality that applied the act was the Municipality of San Francisco in Cebu. They provided logistics for operation. They then created a clear structure of operation and also duly appointed corresponding manpower. And most importantly, information dissemination they call Information Education Campaign (IEC) (Municipality of San Francisco, 2000): An IEC team conducted IEC in schools pertaining to the proper segregation of solid waste in all elementary schools IEC at the barangay and made a barangay ecological SWM team to help spread the campaign Education campaign in the purok during monthly meeting where Solid Waste Management IEC team delivered the Information Campaign about the implementation of the municipal comprehensive solid waste management ordinance. Flyer distribution to public market distributed flyers, leaflets, to vendors at the municipal public market during market day to insure that garbage will be properly segregated and recorded at municipal Public market every Sunday, a market day of the municipality for the purpose of awareness of the citizenry. A house to house distribution of leaflets, flyers on solid waste management regarding the proper segregations of garbage generated in households. 88 | International Experience and Economics of Solid Waste Management
Conduct orientation of the violators at Purok Mahaba Brgy. San Isidro. There are 21 households cant segregate their wastes, out of 62 households. The said violator are subject to render a community service at the area. And putting SWM signage.
Photo 1. Putting up large SWM signage in municipalitys dialect (Municipality of San Francisco, 2000)
If only the government would push more proactiveness centrally or with each municipality then the Philippines could make significant profit from solid wastes. 89 | International Experience and Economics of Solid Waste Management
Figure 8. Institutional Waste classification as per DENR Administrative Order 2001-34 (EMB-DENR, 2010) First benefit is savings from 3Rs since it has been shown that in our context, over the years, the use of plastics has been stagnating, indicating a change in the packaging materials for goods.
Figure 9. CompositionComparison of Results of Composition of Municipal Solid Wastes Generated (Composition, % wet weight) (EMB-DENR, 2010)
Second the facilities and other technologies can have more gains not just by virtue of funding but if SWM collection is bettered so that those in figure 9 can be recycled, recovered or transformed in the following facilities:
90 | International Experience and Economics of Solid Waste Management
Table 10. Existing Solid Waste Facilities in the Philippines (EMB-DENR, 2010)
Commodification of garbage highly happens in the Philippines. Open collection vehicles, in particular, offer easy access for the recovery of recyclables from collected mixed wastes. Sorting of recyclable materials also exists when compactor trucks are used, prior to the compacting of the refuse. This activity is particularly common in Mexico, Colombia, Thailand, and the Philippines. Collection crews later sell the materials on their way to transfer or disposal facilities, and divide the proceeds among them. While some time is wasted in the process, strong monetary incentives encourage collection crews to sort recyclables, since engaging in this activity can double their income. A more socially desirable alternative exists in some Mexican cities, where volunteers retrieve the recyclables, so that the sorting does not distract the collection crew from performing their duties (Gonzalez & Suremain, 1993, p. 11). 91 | International Experience and Economics of Solid Waste Management
The dominant view of scavenging, which still prevails in many developing countries, sees scavenging as inhuman, a symbol of backwardness, and a source of embarrassment and shame for the city or country. Based on this, scavenging has been declared illegal and punished in many Third World cities, such as in several Colombian, Indian, and Philippine localities. Restrictions and a hostile attitude towards waste pickers typify repressive policies (Gonzalez & Suremain, 1993, p. 25). But what majority of the countrymen do not know is that majority of the turnovers of garbage come from the informal sector. IWB The was able to formalize some informal recyclers (termed as eco-aides) and organize cooperatives from waste dealers. Specifically, it is dedicated to formalizing the collection and disposal of recyclables from households back to its source or recycling facilities by coordinating with waste dealers, recycling institutions, waste pickers and government (Metro Manila Linis-Ganda, 2008) wherein their key initiatives include: Improving and strengthening link between middle dealers and itinerant buyers Organizing recycling groups into cooperatives Formalizing scavenging and encouraging participation among schools and households in waste segregation Extensive information campaigns supporting their movement Providing funding assistance for the informal sector The Philippines need not to make technology as an alibi for a not so efficient solid waste management but it must strengthen our traditional way of organization which is by neighborhood ties via information dissemination to grass roots 92 | International Experience and Economics of Solid Waste Management
especially household to household since the Filipinos honing of habits is derived and actualized from families and then extending to networks such as tying up with not only barangay/municipal based approaches but moreover, really reach out to the informal sector which comprises not only the most active sector, but the most income-generating as well. 2. Applications from SWM Advanced Countries Appropriated to the Philippines Immediate applicative mechanism are Promulgating policies, Recycling and Organic Waste Transformation/Composting The policies besides having to be enacted must have information dissemination and strict implementation such really sanctioning those who do not follow (can be monitored per locality). This study draws the following applications for the betterment and sustainability of the Philippines ISWM: Household level: Collection Strategies Segregation although encouraged in status quo must be a strict practice. From the advanced countries, it is seen that segregation before collection lowers operational cost and makes transportation also easier to even transportation cost is lessened. Tipping fees Imposing commensurate fees to actions are effective economic tools in curbing behavior. Taxing must be higher in organic waste since most of our wastes are organic. This would encourage homes to have compost, also recycling those inorganic wastes. 93 | International Experience and Economics of Solid Waste Management
Commercial level: Corporate Responsibility must be strengthened. Like EU countries which inculcate sustainable paradigms in their companies and Japans government being the main watchman of corporate, the Philippines can start with: Waste Recall for material recovery Policies encouraging and enforcing material recovery Industries: Production regulation Industry must have wise estimations of demand so products are not left unsold or expired because that phenomenon has two effects: losses for the industry and more wastes. Proportional production within facilities This is also in line with the first but more with sustainability within the operation of facilities. There would not only be less waste but lesser expenses on energy and packaging materials if production is proportional. Product design and durability It was shown that there is a differing trend in packaging in the Philippines already and industries must take advantage of this and also the government can make this a standard whence attributing quality ratings. Minimalism can be encouraged for lesser packaging costs and wastes but durability could have a long term benefit for costumers such that they can reuse those product packages as containers. 94 | International Experience and Economics of Solid Waste Management
Waste transportation Like households, industries could be imposed of segregation and taxation. Not only now liable to liquid or toxic waste but solid waste produced can be under economic instruments. Long term applicative factor is developing technology The Philippines may tie up with international organizations or other countries but in terms of sustaining its own, it may use the collected and saved money from sanctions in policies, taxations and other economic instruments and resource recovery from recycling and composting to form a solid waste contingency fund which can give rise to the following: Household level: Storage and collection centers Storage and collection centers Proper MRFs Behavioral changes due to policies Commercial level: Energy recovery due to presence of high organic wastes Industrial level: Partnerships between private and public sectors for waste transportation and transformation
95 | International Experience and Economics of Solid Waste Management
V. Conclusions and Recommendations
A. Conclusions Drawn Out Key Findings: The Philippines ISWM profile in status quo: its economical sectors composition, waste generation, current policies and ways of waste transformation reflects the Philippines cannot develop waste-to-energy plants yet that is why it must concentrate and maximize first, policies on waste without resource recovery like on waste collection, transportation and final disposal and second, resource recovery through recycling and organic waste transformation/ composting. General conclusion: Solid Waste generation reflects the economic scenario of a nation and in turn, solid waste management affects the welfare of the stakeholders both in economic and environmental ripple effects. The goal of all nations is towards sustainable development wherein wastes incurred may be put into good use, thus building a green economy. The most profitable aspects of solid waste management is via economical instruments such as taxations and on energy recovery. Specific conclusions: Each locality has its set of assets and limitations so equaling the playing field with the pragmatics of SWM may be difficult but it is internationally transcending. Pragmatics of SWM to be adopted focus is supposed to be 96 | International Experience and Economics of Solid Waste Management
capitalizing on the countrys economic advantage so waste composition must be looked into to determine what approach and facilities are need. Developed countries can process industrial wastes more, developing countries can profit more in agricultural waste and trade externally the other wastes they cannot process yet to have the following benefits: direct profit that can be saved for bettering our technology, less landfill for less pollution and more space for productivity, and circulation of raw materials so production cost of what we are buying also lessens. Societal repercussions are by-products of economic superstructure. A progressive legislation institutes participation amalgamating smart economic instruments in their SWM policies. At the same time since we are concerned with sustainable development, must look into harms and mitigation. Effective materialization of this involves: A multi-stakeholder course of action to identify and implement economic instruments in the solid wastes management sector, (like that of Japans dialogues to grassroots level of clearing up what can be disposed off and what can be of profit that is why it may be puzzling for others why they leave TVs, air conditioners and other deemed valuable electronic solid waste but for them it is clear that the instruction is a centralized picking to maximize profit) Stimulation of decision makers to take a proactive role in formulating country and sector specific economic instruments to help achieve sustainable development, (like that of regions in Europe not merely 97 | International Experience and Economics of Solid Waste Management
relying on technology but creating economic instruments such as taxation and paying as you throw that effectively curbs behavior of all stakeholders whether private or public individuals and is a commensurate mechanism for their action: what they contribute economically is appropriated to what they contribute to the environment what could be more of a promotion of sustainable development as that!), and Strengthening human and institutional capacity in the assessment, selection, planning and implementation of economic instruments in the solid waste management sector (Europeans have producer mitigations and also let company subscribe to a working mechanism which is for sustainable development through workshops and seminars, they harmonize already pragmatics of industry to environmental orientedness which is what a green economy aims for. Japan encourages creation of green products more than others proving that not only must you work intrinsically in the industry but must also curb consumerism side). Percepts and values formed on wastes is a reflection of the economical needs of the terrain. By products are rooted not just from operational pragmatics but traces back to goals of the key stakeholders which are: the household level, commercial level and industries. Commodification and other values formed are unique as per experience of stakeholders. In the end we realize that treasuring of trash ties back to the nature of waste generated in that context. Industrialized countries would value garbage 98 | International Experience and Economics of Solid Waste Management
more on what could be extracted from them so as to serve as new input materials for their future operations and the only direct commodification of garbage is those that they cannot readily process or are costly with their facilities and these are the electronic solid wastes. Constituents of the countries which are best in SWM have great awareness of garbage and its ripple effects so they have come to embrace green propagandas of industry and also paying for the public good of waste collection. In the developing countries however, willingness to pay for garbage collection is not promulgated in a major scale as a household expenditure as opposed to other public services such as electricity and water (there are exemptions in some municipalities who require to their own area). Commodification stems from two things in the developed countries: because there is not much regard to waste collection, there is not much that venture into it and the second reason is that there is a large portion of the masses that find it difficult to earn for their basic needs. The result is that an informal sector would be active in SWM and among it would be comprised more of those in poverty. The informal recovery of materials from waste represents an important survival strategy for disadvantaged populations throughout the developing world. Waste pickers are looked down as the poorest of the poor and only as a marginal sector to mainstream economy and society. In many cases, they are subject to not only discrimination but exploitation by middlemen and by local and federal government policies. Prejudice may highly be present in the Philippines for those who venture into garbage packing, but they are slowly being addressed by the government and hopefully programs that pertain to informal sectors flourish, and also that for the entire information dissemination for the 99 | International Experience and Economics of Solid Waste Management
masses so these prejudices can be watered down. Currently we may not measure up with the global leaders on SWM with technology at hand but we may have our own sound sustainable development if we go through extensive lengths of reaching the grassroots like some municipal-initiated projects and also private ones have done and are doing. The key ideas for Philippines garbage generation into gold: 1. Garbage in the Philippines can be readily profitableThis has been proven in related literatures. On this study it was found that the EU, Japan and World Bank are willing to tie up. But for its own sustainability this study has presented that Philippines waste generated has components which are readily biodegradable, readily combustible and those that are inert components therefore not much technology is needed and return of gains are bountiful. Even food scraps can be utilized since those are highly anaerobic. 2. Household levels must be prioritized Majority of waste generated in the Philippines come from households and so the budget on collection and transportation goes much in this. Aside from it benefits health and the environment, so does it have economic benefits in not only collecting and transporting but also in sorting, processing and transformation. 3. Regulate production with industries and commercial level Policies must not only look after the consumers but also the producers if it wants to have a green economy. Corporate responsibility is not only ensuring proportional input-output 100 | International Experience and Economics of Solid Waste Management
mechanism but also bettering its quality that will instigate a habit of reusing to their consumers. 4. Taxing on landfills were effective Successful countries in SWM valued their lands in such a way that there have been not only policies but economic instruments imposed. Actually the Philippines can use its land as an economic advantage. 5. Exporting trash is an option the currently established countries on facilities have the willingness to import trash most especially those with WTE technology. With the income generated from exporting and the solid waste contingency fund derived from policies and economic instruments, the Philippines can develop its facilities and it is not impossible that we may have our very own waste-to-energy processing.
B. Recommendations of the Study and for Furthering Our world will increase in population and be more and more interconnected. EKC may be used as the compass to know whether we are able to balance economic development to environmental development. The defining challenge of the 21st Century will be that humanity shares a common fate: that which is already demanding new forms of global connecting. The paradox of a unified global economy and divided national societies poses the single greatest threat for our planet... Although there are appropriate waste management solutions, the chief concern is the global framework that should put them in place where they are most needed. Ways on proactive participate in the creation and upholding of it of a green 101 | International Experience and Economics of Solid Waste Management
economy would be a good topic to develop (i.e. what have been the best economic instruments that curb excessive consumerism or on the other side, weak corporate responsibility). There is foremost though a recommendation of garnering more data especially in developing terrains. Interest in garnering more data base but also making quantitative studies on SWM in which EKC can be used to correlate to national economics of waste management. A further recommendation would be using EKC to international welfare in waste trade. ODIN-WR efficacy and application is worthwhile to dig into since the highly sophisticated model of Japan is able to analyze equilibrium of waste management since it encapsulates the countrys different industrial and energy sectors. Specifically for the Philippines: Data and information on waste generation and waste management particularly of solid wastes in the Philippines should be explored further since it is part of the regions that deemed to have poor data and information. Awareness raising and capacity building in waste and waste management should be developed and effectively enforced. Participation of various stakeholders in waste and waste management should be enhanced in the provision of resources for the effective implementation of the 3Rs. Education will create awareness and support the development of a new frame of mind in a mid-term perspective. Legislation, however, has to lay out the rules, to enforce them and to prevent violations as a short term measure. 102 | International Experience and Economics of Solid Waste Management
In view of the variety and complexity of products and consequently of wastes, byproducts, and residues, there is no single solution to the waste treatment demands of today. An appropriate mix of technologies is needed in order to meet the a range of technical, ecological and economic requirements of integrated waste management on a regional level. As long as industry and consumers produce waste, we need an infrastructure that allows for their proper treatment and detoxification and for the safe long-term disposal of residues. This system may become less extensive once we achieve good results in the fields of waste detoxification and waste minimization. The concept of producers responsibility was realized by shifting the financial burden for the proper treatment or recycling of end-of-life products (products near to expiration date) to manufacturers. This has established a new line of communication between the environmental sector and manufacturers. Waste managers relay information regarding the design for recycling and the design for disposal upstream to producers and manufacturers, thus advocating the cause of the environments capacities and environmental constraints. This communication will still be developed and further improved, but it can be regarded as a first step to be taken by the waste management sector. Two main challenges for the future are the task of decoupling waste generation from economic growth by increased eco-efficiency as well as the problems caused by the trend of rapid urbanization. Given our present production and consumption patterns, waste generation is closely tied up with population growth and economic development. Many of the most rapidly growing conurbations 103 | International Experience and Economics of Solid Waste Management
and mega-cities are located in developing countries where funding is still a critical issue so if further studies are made about the link of waste management other economic indicators, this concern might be put into greater attention not only by awareness to people but hopefully funds either from the outside: more program integration or giving investments for the country to create their own programs and from the national scale: easier loans or better grants-program may be promulgated. While the introduction of fees for waste collection and treatment services raises peoples awareness, it may push consumers and businesses to illegal practices. This makes information dissemination an even more important factor in this context. Today, the waste management industry is well aware of the economics it could benefit from and the importance of social aspects. These include, among others the sitting of facilities and the introduction of new collection schemes, training workers and staff and educating consumers, establishing and promoting business, business relations and international dialogue, etc. Since the waste management sector of today has a wider scope, an increased potential and a sense of growing responsibility, it needs to create trust in its management approaches, business practices and technical operation. Trust as a long-term commitment will be supported by high standards, transparency, documentation, and an honest policy to fight offenders. Qualitative studies on how managerial aspects such as trust affect participation of stakeholders in waste management can be looked into. These recommendations are made because not only are there material problems, but deeper are managerial problems. a | International Experience and Economics of Solid Waste Management
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Gasification of Waste Materials: Technologies for Generating Energy, Gas, and Chemicals from Municipal Solid Waste, Biomass, Nonrecycled Plastics, Sludges, and Wet Solid Wastes