EFFECT OF WASTE MANAGEMENT ON ECONOMY
EFFECT OF WASTE MANAGEMENT ON ECONOMY Waste is part of the economy – it is a by-product of economic activity, by businesses, government and households. Waste is also an input to economic activity – whether through material or energy recovery. The management of that waste1 has economic implications – for productivity, government expenditure, and, of course, the environment. Firms’ decisions over how to manage waste impact on their profitability. Where the benefits outweigh the costs, firms can reduce their overall costs2 and improve productivity by reducing the use of expensive raw materials, whether metal in industry, or paper in commerce. Equally, costs can be reduced by optimising the management of waste which arises. The decisions of consumers in demanding goods and services which lead to waste impact not only on the environment, but also on the level of government spending required by local authorities to collect and manage household waste. As well as the economy-wide impac...