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
