LANDFILL LEVIES AND OTHER ECOLOGICAL TRUTHS

Warwick Giblin

Enviro Taxation June 2003

OVERVIEW

• Traditional economic measures • The need to change• Market based instruments • MBI’s in waste management• Landfill levy for NZ• Keys to waste minimisation

GOAL: HAVE ECONOMY TELL ECOLOGICAL TRUTH

TRADITIONAL ECONOMIC MEASURES

• GDP = wealth ??• Traditional “wealth” measures unsustainability• Inefficient use of resources waste • Loss of ‘natural capital’ unsustainable• No account of environmental costs & benefits

FUTURE ECONOMIC MEASURES

• Economic incentives/disincentives to price goods /services with enviro costs

• Reduce taxes on labour• Disincentives to address costs:

– resource depletion– pollution– ecological degradation (climate change)

• Market Based Instruments (MBI’s)

MARKET BASED INSTRUMENTS (MBI’S)

• Internalise non-market enviro values• Enviro protection more ‘profitable’ / lower cost

option• Encourage reduced consumption• Discourage unsustainable behaviour• More cost effective • Encourage green technologies• Revenue for public enviro protection

TYPES OF MBI’S

• Pollution charges / enviro taxes– industrial emission taxes– user pays charges

• Tradeable permits– total pollution level fixed, polluters bid for quota

• Government subsidies– reform to discourage unsustainable practices e.g. land

clearing, water, energy, fertiliser

WASTE AND MBI’S

• Waste = an unwanted resource (low price item, seen as no value)

• UK landfill tax – £13 / t (NZ $42)– total fee £27 / t (NZ $88)– rate too low to stimulate required behavioural change;

needs doubling / tripling– part revenue used for community enviro projects

WASTE AND MBI’S cont.

• NSW Landfill Levy– Sydney: A $18.20 / t – total fee A $75 / t – country: A $9.60 / t– 50% consolidated revenue; 50% Resource NSW

• Victoria Landfill Levy– A $4 / t MSW, A $10 / t industrial waste– in 2007, $9, $30 respectively– Eco-Recycle Victoria

WASTE AND MBI’S cont.

• Others– Adelaide: double to A$10 / t July 2003

– Ireland: NZ 30c levy per plastic bag (90% reduction)

– Netherlands: £ 48 / t LF tax

– Germany, Denmark: ecological tax reform

LEVY FOR NZ

Aim: incentive to modify wasteful behaviour

• $20 / t plus $1 p.a. increase MSW• higher rate for industrial waste• fund waste minimisation

THE WAY AHEAD

• MBI’s so change behaviour• Change “wealth” measures• Teeth to waste strategy (ERP, bans)• Waste facility national standards - enforce• Govt: encourage recyclate markets, altern waste

technologies • Education: inform understand attitudes• Govt: emphasise enviro / social criteria in tenders;

less on short term economics

LET’S DO IT!

LANDFILL LEVY : HELP MARKET-PLACE TELL ECOLOGICAL TRUTH ABOUT

RESOURCE USE