Economic Components of Recycling Obstacles to a Free Market April 11, 2013.

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Presentation transcript:

Economic Components of Recycling Obstacles to a Free Market April 11, 2013

SERDC.org SERDC Sponsor members 2

SERDC.org Let’s Explore Market Obstacles Why don’t our markets behave like we think they should?

SERDC.org Regional Collaboration = Increased Access to Markets Summary of Region Wide Findings: 206 manufacturers 47,525 employees $29.4 Billion sales revenue

SERDC.org

What is recycling? 6

SERDC.org Traditional Market Behavior P Q S D

SERDC.org Negative Pricing P Q S D 0

SERDC.org The Bottom Line P Q S D Tipping fee 0

SERDC.org What’s really happening: Inelastic Supply P Q S D

SERDC.org Super Inelastic Supply P Q S D

SERDC.org Market Volitility P Q S D

PPI - Wastepaper

Aluminum UBCs

Plastics

SERDC.org How have Programs Responded? Environmental concerns led to program creation. Local governments are mission service driven, not profit motivated.

Capture Percentage Flat Lined

Daily Pounds per Person, recycled

Paper by Decade

UBCs by Decade

Plastic by Decade

Pounds per Capita

SERDC.org Restraints Annual budget Floor pricing in contracts – Risk vs Return Citizen participation Inequitable access

SERDC.org How do we move the needle? P Q S D

SERDC.org Possible Improvement Enterprise Funding Contract Negotiations Pay As You Throw Cooperative Marketing Extended Producer Responsibility Hub and Spoke

SERDC.org Increase Recycling Quality Quantity Methods Policy Practice

SERDC.org SERDC Resources Economic Reports State Recycling Resources Market Directories Waste Exchanges

SERDC.org Contact Information Will Sagar Executive Director (828)

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