Waste material recovery in the South Island: policies for encouraging recycling

Abstract

This dissertation is concerned with institutional arrangements and policy options for influencing both the level of waste material recovery in the South Island, and the rate of recycling at the national level. The laws of thermodynamics are integrated with social and economic concepts to form a framework for examining institutional arrangements and policies designed to increase recycling.

The role of local authorities in promoting programmes of waste management which incorporate recycling, is outlined. Estimates are developed of the quantities of recyclable material currently being disposed of in the five largest South Island towns. These indicate large volumes of potentially recyclable material are available.

Marginal costs of recycling are shown to vary with the entropy of the waste system. Models are used to demonstrate why the South Island is the first source of supply constrained by adverse market changes, and how this influences municipal recycling. If firms and local authorities internalised externality costs associated with the disposal of waste in common property resources, the level of recycling would be higher.

Profiles are developed of the value of waste material recovery, of the nature of the recovery operation, of material utilisation, and of the potential for increased recovery for each material recovered in the South Island.

South Island stockpiling of recyclable material, to take advantage of suitable unused northbound freight capacity, is discussed. Single material, regional stockpiles, utilising rail freight, are considered the most appropriate stockpile arrangement. Issues relating to the use of empty freight capacity, are outlined, including the effect on the level of recycling, of different patterns of distribution of freight benefits. Granting marginal cost freight concessions gives no guarantee of increased recycling.

Government policies are shown to be inadequate for realising the net national economic benefits from additional recycling. A wide range of policy instruments are available to government. These are outlined, and in conclusion, some policy suggestions for stimulating recycling, are presented.