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Recovery of C&D waste

Recovery of C&D waste. Changing under different economic constraints. EU: differences in GDP / cap ~€. 7.500-10.000 Bulgaria, Poland, Hungary 10.000-17.000 Lithuania, Czech Rep., Latvia, Portugal, Greece, Cyprus, Slovenia 17.000-21.000 Spain, Italy, Germany, Estonia 22.000-30.000

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Recovery of C&D waste

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  1. Recovery of C&D waste Changing under different economic constraints

  2. EU: differences in GDP / cap~€ • 7.500-10.000 • Bulgaria, Poland, Hungary • 10.000-17.000 • Lithuania, Czech Rep., Latvia, Portugal, Greece, Cyprus, Slovenia • 17.000-21.000 • Spain, Italy, Germany, Estonia • 22.000-30.000 • Belgium, France, Austria, UK, Netherlands, Sweden, Denmark, Ireland, + Luxemburg

  3. Turnover P/c Eco-industry

  4. SWM& Rec ~ € 20,-/cap

  5. SW & Rec ~ € 50,-/cap

  6. SWM & Rec ~€ 250,-/cap

  7. Ratio SWM cost/GDP • GDP<20.000: 0,1 - 0,2 % • GDP>20.000: 0,5 - 1,0 % • Low: Estonia, Spain, Belgium • High: Slovenia, Denmark, Austria

  8. A guess • Prices for C&D waste recycling are about 1/3 of cost of waste management per capita, e.g.: • € 7,- at a level of € 20,- • € 17,- at a level of € 50 • € 70,- at a level of € 200

  9. A general model for cost accounting • Full costs: • Internal: • Process cost • Product costs and revenues • External “community” cost: • Generation of pollution & deterioration of renewables exceeding natural absorption level & Depletion of natural resources: • Difficult to count, change with wealth • Difficult to address: local, regional or global • For someone else or the next generation • Diluted

  10. Conservation of misery • Law on conservation of matter: • the GOOD, • the BAD and • the UGLY

  11. A dynamic arena of interacting parties • Consequences of goods with negative value • Recycling breakeven • Profitability regarding different public policy instruments • Choice of market match • Economy of scale • Economic depreciation of investments

  12. Consequences of goods with negative value • Cash flow + • Stock value - • Risk management +/- • Loss reward +

  13. Recycling Breakeven • Competition with other treatment chains (e.g. land filling or incineration): dominant competition • Built-in percentage of other treatment: BAD can become worse for residues

  14. Competing chains C -70 Transport -20 1 50% GOOD 2 Transport -40 R -20 40% BAD -40 10% UGLY ( = Community) Tipping fee -30 Landfill

  15. A guess • Prices for C&D waste recycling are about 1/3 of cost of waste management per capita, e.g.: • € 7,- at a level of € 20,- • € 17,- at a level of € 50 • € 70,- at a level of € 200

  16. Competing chains C -10 Transport -5 1 80% GOOD +3 PRICE ?? 2 Transport -5 R -20 20% BAD -5 10% UGLY (-100 = Community) Tipping fee -5 Landfill MAX PROFIT ??

  17. Low cost competition Wood, Metals, Plastics C -10 Transport -5 1 80% aggregate +3 PRICE 4,90 2 Transport -5 R -5 20% BAD -5 10% UGLY (-100 = Community) Tipping fee -5 Landfill MAX PROFIT 1,30

  18. After technical regulation C -25 Transport -5 1 70% GOOD +12 PRICE 19,90 2 Transport -5 R -20 30% BAD -20 10% UGLY -100 community Tipping fee -20 Landfill MAX PROFIT 2,50

  19. After technical regulation and taxing debris, wood, metal C -75 Transport -5 1 60% GOOD +2 PRICE 69,90 2 Transport -5 R -35 5% 40% BAD -70 5% UGLY -100 tax Tipping fee -70 Landfill, incinerator MAX PROFIT 3,10

  20. Selective Landfill ban for unsorted waste: BINGO C -104 Transport -5 1 60% GOOD +2 PRICE 99 2 R -35 X 5% 40% BAD -80 5% UGLY -100 = Tax Landfill MAX PROFIT 28,20

  21. Finding a match of markets • A. waste product markets • B. Resources markets (Energy and raw materials) B specific A Sophiticated

  22. Economy of scale collect Sort 3 end Sort 1 Sort 2

  23. Innovation and governmental reliability • When investing, parties want a “innovative” public policy guaranteeing change, to be able to invest; • After investment parties want a “reliable” public policy to have a optimal depreciation of their assets; • It would be a coincidence if all the parties would be in the same stage at the same moment: • countervailing lobbying causes delays

  24. Instruments of public authorities creating a artificial market • Technical regulations (IPPC, BAT) • Treatment regulations (BREF’s) • Economic measurements: grants and taxes • Economic actor: client, supplier, manager

  25. Effective regulation Thesis: • A combination of technical regulation and taxing the remaining external cost is sufficient for the creation of an effective diversified market • More is politics and can be used as temporarily accelerator

  26. Concluding remark:Design your system(-role) back to forth • Start in the future, count ten years back; • Question what scarce resources are and what can be paid; • Count internal and external cost; • Design the whole system of end-treatment, recycling and collection (In that order); • Find efficient rules for the play and roles for the players.

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