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The answer lies in urban mining, the process of reclaiming compounds and elements from products and buildings when they reach the end of their useful life, and become what we currently deem waste.
A new study undertaken by the Energy Research Centre of the University of Cape Town in November 2016 investigates the economic impact of the introduction of resources back into the economy through waste stream management.
Calibrated to the 2009 economy, the study shows that rolling out waste as a green industry would effect a 0.5% increase in GDP. According to the authors, this is a very conservative figure as the output multiplier effect is extraordinary and hasn’t been included in the calculations.
Commenting on the findings, co-author, economist and head of R&D at REDISA, Dr Reza Daniels says, “Our need to grow the economic pie in SA is now more important than ever before. Waste offers us the opportunity to take what is fundamentally dead capital and bring it back to life by monetising it.”
“In South Africa, this has already been done in the waste tyre industry, but the opportunities for other waste streams are much larger. This study shows the opportunities that exist and the catalyst needed to make waste a viable economic driver locally.”
Using the SA General Equilibrium (SAGE) model to estimate the economy-wide impacts, and working with a scenario of 13 monetised waste streams, other key impacts in the study include:
The research only scratches the surface of what is truly possible as it does not account for the catalytic impacts on the economy from increased intermediate goods and services demand, higher employment and lower waste disposal costs. However, in a second paper entitled "Economic benefits of extended producer responsibility initiatives in South Africa: The case of waste tyres" authors Hartley, Caetano and Daniels expand on the simple supply shock outlined in the first paper, using the Integrated Industry Waste Tyre Management Plan (IIWTMP) as a calibration point.
The over-arching findings based on the introduction of the IIWTMP, are that there are several positive impacts on the SA economy, namely:
“The results from this analysis are once again likely to be underestimating the potential economic benefits given that the environmental benefits associated with recycling have not been quantified and accounted for and that the analysis is static and not dynamic.
“What is of critical importance though is that by using the IIWTMP as a case study we are able to demonstrate that extended producer responsibility initiatives that directly subsidise waste beneficiation activities and build recycling industries, do have significant potential for positive economic impacts and environmental benefits,” concludes Daniels.