Costs and Benefits of Recycling for North Carolina

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1 Costs and Benefits of Recycling for North Carolina NC Division of Pollution Prevention and Environmental Assistance PO Box Raleigh, NC (919) Overview We live in a throw-away society. An average of 5.9 pounds of garbage per capita is disposed each day in North Carolina. Despite tremendous increases in source reduction and recycling since 1990, we generate more waste than ever before. Source reduction and reuse, the highest levels of North Carolina s waste management hierarchy, offer clear benefits to the State and the environment. Both source reduction and reuse are not only cost effective, they also minimize pollution associated with production and disposal without creating other types of pollutants or waste. On the other hand, the benefits and disadvantages of recycling are more complex. Development of a recycling program can be expensive, and recycling generates pollution. Thus, several questions arise: Is recycling really good for the environment? How does it affect the North Carolina economy? Does it save or cost money? This fact sheet reviews the advantages and disadvantages of recycling. Part I. Recycling and the Environment Disposal. Recycling reduces dependence on landfills and incineration, which, in turn, reduces water, air, and litter pollution generated by such disposal methods. Landfills can potentially pollute water, air, and land resources. Pain water and other moisture that mix with garbage create organic acids, which in turn dissolve heavy metals present in the garbage. This liquid, known as leachate, can leak out of the landfill into surrounding aquifers. Groundwater quality in the immediate vicinity of the more than 100 older unlined facilities in North Carolina has been affected by this process. Although newer, lined landfills dramatically reduce risks of groundwater contamination, they can pose risks of leaking. The leachate that is captured from lined landfills requires treatment and adds to the load of wastewater treatment plants. In addition to leachate risks, methane and other volatile gasses are generated inside landfills as garbage decays. Methane has been identified as one of the greenhouse gasses that contributes to global warming and the US EPA has identified landfills as the leading source of methane generation in the US. However, when items are recycled, methane generation in North Carolina landfills can be reduced by as much as 24 percent. 2 It should be noted, however, that some large landfills find it cost effective to capture methane for energy production. Other environmental problems associated with landfilling include the risk of the spread of litter by incoming garbage that is not properly covered, noise from equipment operations, and sometimes severe odors from anaerobic decomposition. These environmental concerns have an immediate effect on local residents and make landfills locally undesirable uses of land. Finally, landfills are a poor use of land that otherwise may be a field. forest, or home site. Disposed tonnage consumes approximately 153 acres of land in North Carolina each year. 3

2 Incineration has not proved to be cost effective in North Carolina. Like landfills, incineration poses environmental risks. Mercury, lead, dioxin, and oxides of nitrogen are some of the air pollutants that result when municipal solid waste is burned. The ash generated by incineration Figure 1. Amount of Waste To Be Disposed After One Ton of weighs about 26 to 36 percent as much Solid Waste is Landfilled, Incinerated, or Recycled. 3 as the original material. 4 Depending on the mix of waste, the ash may be hazardous and, at the very least, must be tested for hazardous constituents according to EPA regulations. Even though disposal practices of landfilling and incineration (including waste-to-energy facilities) have improved, they still pose environmental risks. Figure 1 shows that, compared to direct landfilling of solid waste, incineration also generates significant amounts of ash that require landfilling. With recycling, dependence on landfills is minimal. 5 Recycling reduces all undesirable aspects of disposal through both landfilling and incineration. * Solid waste output in this graphic excludes the life cycle reduction in wastes from utility companies and manufacturing that results from recycling. Natural Resources. When virgin feedstock is replaced by recyclables, less environmental damage is created because fewer natural resources are extracted from the earth. Reductions in the environmental effects of mining, drilling, and timbering are among the most significant benefits of recycling. Logging trees, mining metals, and drilling for oil all destroy natural habitats, erode the landscape, and create run-off problems that can pollute a watershed. These problems have increased in significance as raw material usage in the US increased from around 500 million metric tons in 1940 to 2500 million metric tons in The environmental destruction created from mining is a typical example. Currently, non-fuel mining produces an estimated 1.0 to 1.3 billion tons of waste material each year, an amount six to seven times the total amount of garbage generated by all U.S. municipalities. In both surface and underground mining, the most problematic waste generated is the residue from ore concentration operations. When mixed with water, these tailings can form strong acids that damage nearby streams and lakes. In the United States, abandoned metal and coal mines comprise an estimated 9 million hectares 8 - an area about the size of North Carolina. This figure does not include the sizable but unmeasured areas used for extracting sand, gravel, and stone for construction materials. Recycling reduces the need for virgin materials and, thus, reduces the adverse environmental effects of resource extraction. It is sometimes argued that paper recycling does not conserve virgin resources because trees are a renewable resource. This argument is a fallacy for two reasons. First, less than 35 percent of timber production in North Carolina comes from timber company land: the majority comes from private tracts of land. 9 This use of private land means that timber comes not only from tracts dedicated to timber production but also from many forests that otherwise may be left in their natural state. Second, despite the renewability of a tree, clear cuts and especially tree plantations are not environmentally benign. They change the native habitat, create run off, and deplete the soil over time. Single-species tree farms are also more susceptible to disease and insect problems, which are sometimes treated with harsh chemical pesticides. Recycling may not save trees, but it does save forests, which are tree-based natural habitats. Costs and Benefits of Recycling -2- September 1997

3 Moreover, by contributing to overall fiber availability, recycling helps alleviate high demand for timber and redirects harvested wood to higher end uses such as construction products. Using an estimate of three trees to make one ton of paper, local recycling programs in North Carolina contributed the equivalent of 619,182 mature trees in raw fiber to the paper industry in Fiscal Year Adding in the estimated 623,400 tons of paper recovered by the private sector in North Carolina in 1996 would make the figure exceed 2.5 million trees. The estimated 221,000 tons of pallets recycled annually in North Carolina also substantially enhances overall fiber availability. l0 The processing of recycled material also requires resources; however, recycling is labor-intensive and tends to require more human than natural resources. Recycling also requires energy resources, but the energy needed tends to be much less than that consumed to manufacture products from virgin resources. Energy. Recycling saves significant amounts of energy compared to the manufacture of products from virgin resources. Recycling reduces energy consumption by three times compared to virgin production and eventual disposal (even assuming waste-to-energy disposal methods are employed.) Generally, recycled materials used in production require three times less energy than that needed in virgin production because recycled products are already partially converted into the final product (see Figure 2). l8 For example, cullet (old glass bottles) requires lower temperatures and less processing time than virgin constituents (e.g., sand) to make new glass bottles. l9 Similar energy savings are achieved with many common manufactured items. (Specific energy savings from recycling are listed in Table 1) Recycling at current levels in North Carolina reduces the total energy use by an amount equal to the energy used by 250,000 households per year. 20 The recycling of bottles and cans by North Carolina local government programs helped save 1.31 billion Btu of energy in N Industrial Pollution. By reducing 9 of 10 common industrial air pollutants and 6 of 8 water pollutants, recycling decreases pollution from industrial processing and manufacturing. Manufacturing processes generate pollution: the smelting and refining of metals creates heavy metal emissions and paper production emits sulfur compounds. Conversion of virgin natural gas and oil into plastic products also produces hazardous waste and air pollution. Industries such as the paper industry that use water in the manufacturing process may generate huge quantities of wastewater that are released into the watershed after treatment. From a life-cycle perspective, recycling reduces 9 of 10 of the most common air pollutants (e.g., methane, nitrogen oxides, sulfur oxides, ammonia) compared to landfilling and Costs and Benefits of Recycling -3- September 1997

4 incineration. 22 Six out of 8 major water pollutants (e.g., high BOD and COD, dissolved solids, oil) are also reduced if recycling replaces original processes. 23 Unlike source reduction, recycling is not entirely benign. Recycling may generate pollution, and not all recycling is good for the environment. For example, if an individual drives 10 miles out of the way to recycle a few aluminum cans, the environment is not being served. Or, the energy required to recycle mixed material products such as an upholstered couch may make recycling undesirable. However, these examples are the exception and serve to underscore the need to design products and collection systems to facilitate recycling. Compared to use of virgin materials, recycling, in general, reduces the amount of pollution generated. In some cases, such as mining, the associated environmental damage is many times greater than that of recycling. 24 Transportation. Transporting recyclables generates less air pollution than transporting virgin materials recovered by extraction because distances associated with virgin material management tend to be greater than those associated with recycling. Regardless of the material transported, the transportation of goods generates significant amounts of air pollution from carbon monoxide, oxides of nitrogen, etc. Transportation distances for some virgin materials are often great as they frequently travel on national and international routes; on the other hand, recyclables tend to travel regionally. For example, the ALCOA manufacturing plant in Badin, North Carolina, makes coils and other aluminum products. The company s virgin material, bauxite ore, comes from South America, while recycled feedstock comes from the eastern United States. It is true that, depending on the distances of recycling and virgin sources to manufacturing facilities, the effects of transportation in some parts of North Carolina may be higher for some recycled materials (such as a paper and glass). Also, when recyclables are shipped internationally, the environmental cost of transportation for such recycled feedstock may be as high as for virgin resources. Summary of Environmental Benefits Recycling provides clear environmental benefits over resource extraction and disposal. Recycling reduces environmental risks associated with disposal, conserves natural resources and energy, reduces pollution, and generally lowers the environmental impacts of transportation. Cases should be scrutinized if recycling is suspected of not providing a life-cycle environmental benefit; recycling should be discontinued if it does not hold an environmental edge. In most cases, however, businesses, communities, and individuals can be confident that recycling does provide a net benefit to the environment. Part II. Recycling and the Economy Most people choose to recycle for its environmental benefits. However, environmental benefits are not the only criteria society uses to select policies and actions. When decisions are made, economic impacts frequently take precedence over environmental benefits; or they receive equal weight, at least. The private sector especially must justify most decisions according to their effects on the bottom line. How does recycling fare in economic terms? Job Creation. Recycling is a growth industry in North Carolina that supports over 8,700 jobs. It creates jobs at seven times the rate of resource extraction and disposal. Recycling is a net job creator for North Carolina. Over 8,700 people work in the recycling industry in North Carolina - almost as many as employed in agriculture. Whereas the collection and disposal of 30,000 tons of solid waste along with the resource extraction creates only 14 jobs, the recycling of the same quantity of material creates 100 jobs in North Carolina. 25 In other words, recycling creates jobs at seven times the rate of resource extraction plus disposal. Also, North Carolina recycling companies have added new jobs at six times the rate of all private industry in the last four years. 26 Costs and Benefits of Recycling -4- September 1997

5 State Economy. Because recycling feedstock generally comes from local or regional sources, recycling helps localize the North Carolina economy. Many industrial raw materials used in North Carolina manufacturing come from outside the state and even the country. For example, the virgin constituents of plastic, oil and natural gas, come from great distances across the globe. Local processing by companies such as PREI of Youngsville, which processes recycled plastic bottles, reduces the need for the extraction, refining, and transport of the natural resources. Over 475 companies dedicated to recycling contribute to the local economy and tax base of the state. 27 In addition to the recycling industry, many more companies whose primary purpose is not recycling perform recycling as part of their business. These activities also contribute to the strength of North Carolina s economy. Cost Savings. Private sector companies generally recycle to save waste management and disposal costs. Some local governments find recycling less costly than disposal, while others find it more expensive. In general, local governments that realize higher recycling rates (i.e., that achieve better quality programs) are more likely to operate recycling programs that are less costly than disposal. Although the strength of recycling markets influences the cost effectiveness of a recycling program, the most significant financial benefit generally comes from avoided disposal costs. Palm Harbor Homes, a mobile home manufacturer in Siler City chooses to recycle a wide array of materials (including sheetrock, metals, cardboard, carpet, and vinyl siding) to avoid the $35per-ton disposal fee at the local solid waste transfer facility. Also, the primary reasons companies may use recycled feedstock is to reduce raw material costs. 28 Although many companies incorporate environmental ethics into their decisions, most recycling occurs in the private sector when it helps the bottom line. Although many cities and counties also save money through recycling, the issue of cost savings is more complex for local governments. Unlike the private sector that pays disposal tipping fees, local governments that own solid waste disposal facilities do not pay tipping fees and, thus, do not necessarily realize shortterm, direct monetary benefits from recycling. Some local governments depend on a certain flow of waste material to achieve an economy of scale in their landfill or incinerator operations. The space that is being filled by garbage has value, especially as the need to site a new landfill approaches, but it is very difficult for local governments to put a dollar value on the space. Costs and Benefits of Recycling -5- September 1997

6 Even as recycling costs come down, disposal costs continue to rise. As the public becomes more knowledgeable about solid waste issues and as North Carolina s population increases, the siting of new landfills will become increasingly controversial and more costly. Recycling helps to postpone the siting of new landfills and perhaps reduces the number of landfills needed. As a result, the costs of new landfill development, which are frequently unaccounted, may also be saved. Summary of Recycling and the Economy In addition to creating jobs, recycling stimulates the North Carolina economy as it adds to and localizes economic activity. Because individual companies that recycle generally do so for economic reasons, recycling helps the state s private sector to be more efficient. Recycling services can cost as little or less than disposal for North Carolina local governments, and those local governments that achieve high recycling rates are more likely to operate recycling programs that are less expensive per ton than disposal. While most people are familiar with common recyclables such as cans, bottles, paper, etc., much recycling occurs in the manufacturing and commercial sectors. For example, PRE in Burlington has found recycling of vinyl siding to be cost effective. Grocery stores across the state recycle corrugated cardboard to save money. Textile manufacturers such as Hornwood, Inc., in Lilesville have found it less expensive to recycle Costs and Benefits of Recycling -6- September 1997

7 yarns and thread than dispose these materials in the landfill. Activities such as these. combined with residential recycling programs, help North Carolina to recycle close to 25 percent of its waste stream and achieve the environmental and economic benefits described here. Conclusion Recycling provides clear environmental and economic benefits to North Carolina. Not all recycling is created equal, and sometimes it may not be the best environmental or economic choice. Exceptions, however, should not taint the overwhelming evidence that recycling is generally the best waste management option after source reduction and reuse. Furthermore, recycling links the economy and the environment. Recycling helps stimulate the North Carolina economy, which in turn creates a climate in which the environmental benefits of recycling can be achieved. North Carolina communities, citizens, and private companies should aggressively seek ways to divert valuable materials from the waste stream to help build a sustainable future for North Carolina. Costs and Benefits of Recycling -7- September 1997

8 25 Shore, Michael, The Impact of Recycling on Jobs in North Carolina. North Carolina Office of Waste Reduction Kirkpatrick, David, North Carolina Recycling Business Study. North Carolina Department of Environment. Health, and Natural Resources Ibid. 28 For example, see Brandt, Peiffer, Use of Recycled Feedstock, Recycling Works, Vol. 3, No. 1. February North Carolina Division of Pollution Prevention and Environmental Assistance, 29 Shore, Michael, and Matthew Duchesne, Analysis of the Full Cost of Solid Waste Management. NC Division of Pollution Prevention and Environmental Assistance Cost comparison of recycling and disposal takes into account collection cost required as a part of both waste management strategies. 31 Shore, Michael, and Matthew Duchesne. op. cit. DPPEA The North Carolina Division of Pollution Prevention and Environmental Assistance provides free, nonregulatory technical assistance and training on methods to eliminate, reduce, or recycle wastes before they become pollutants or require disposal. Telephone DPPEA at (919) or or us at nowaste@owr.ehnr.state.nc.us for further information about issues in this Fact Sheet or to discuss any of your waste reduction concerns. DPPEA copies of this public document were printed on recycled paper at a cost of $48.00 or $0.096 per copy Costs and Benefits of Recycling -8- September 1997

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