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Assessing the Public Benefit of Recycling

The rising global demand for commodities like steel and plastic is having a big impact on recycling here in the United States. Not long ago, recycling was described as a feel-good environmental project without much practical impact. But now, recycling is generating millions in revenues.

Recycling is complicated by the fact that the business involves a mix of public and private investment. But the recycling business is good these days. Driving the recycling boom is a trend toward high and stable prices for the basic commodities. The cash flow helps, because like most businesses, a Materials Recovery Facility that sorts recyclable items requires a large investment: three and a half million dollars, picked up by the public. The plant turns a single stream of paper, plastic and metal into bales that are sold by the ton.

John Casella of Casella Waste Management Systems has also invested millions in recycling."Not only is it environmentally the right thing to do, but make it economically the right thing to do by driving down costs and doing whatever we can to drive that as a real business," Casella told Channel 3.

The investment paid off. Casella's company grew from a single truck in the mid 1970s to five-hundred million dollars in revenues today. Twenty percent of Casella's revenues -- a hundred million dollars -- comes from recycling.

Chittenden solid waste is making so much from recycling they cut the fees to haulers... these trucks now pay $13 a ton. It used to be $18. That's a savings of 27 percent. Was it passed back to the customer? Not exactly. The haulers say they've held prices steady. The customer benefits from no increase. Recycling advocates say what's needed is a financial incentive for individuals to recycle even more than they do now.

Casella points to a pilot program in Philadelphia where people can actually earn coupon dollars to be utilized at retailers. "There's some real opportunities there to change those dynamics to have a real incentive at the home to increase participation," he said.

Participation already has increased dramatically. Recycling at the Williston plant doubled over the past decade, from 16,000 tons in 1997 to 32,000 tons last year. That's a one hundred percent increase. At the same time, trash in the landfill went up only 50%.

Every ton that gets recycled is a ton that does not fill up a landfill. Tom Moreau, who runs the Chittenden Solid Waste District, says individuals will benefit from greater recycling.

"Landfill costs are going up," he noted. "This cost is going down. So the more you can put in the recycling bin portion, you're going to keep your overall solid waste bill down."


Source: wcax.com