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Waste management

The potential use of market based instruments to improve waste management

In 1992 the Australian and State and Territory Governments agreed to reduce the amount of waste going to landfill by 50%. While Australians are now recycling more and we have reduced the quantity of waste each person generates, 14 years on we have still not met the 50% target. This is despite the introduction of higher landfill fees, zero or low waste policies and industry product stewardship efforts. Should this continue to be our focus and if so how can we achieve this goal?

This report by McLennan Magasanik Associates and the BDA Group helps us to understand better how market instruments can reduce the impacts of waste. Market instruments include direct or indirect monetary incentives to reduce waste or increase recycling such as tradeable recycling certificates, landfill quotas, advanced disposal fees, and more traditionally, landfill fees.

This is the third and final report in a series of reports. It examines a range of instruments that could influence recycling and land-filling rates, identifying pros and cons that would need to be considered carefully by governments in order to ensure that the net costs are appropriately outweighed by the net benefits. The instruments examined in detail include tradeable landfill quota schemes, recycling certificate schemes, landfill emissions fees and landfill levies.

Stakeholder views were sought through interviews and feedback on preliminary reports. The report was funded under the Natural Heritage Trust's Waste Management Awareness Program.

The outcomes of this study will inform discussions between the Australian, State and Territory governments for a more strategic approach to national waste management.

If you have any queries about the study you can contact:

Angela Gillman
Department of the Environment, Water, Heritage and the Arts
GPO Box 787
Canberra ACT 2601
Phone: 02 6274 1902
angela.gillman@environment.gov.au

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