Waste Minimisation Clubs: a cost‐efficient policy instrument?

Abstract

Abstract The total amount of solid waste generated in Europe is estimated to grow by 10% every year and there is increased concern over the associated environmental impacts. As a result, the minimization of waste at source in business and industry is a top priority in the European Community's waste strategy. In the UK, regional Waste Minimisation Clubs (WMCs) have been established to promote sustainable waste management in business and industry. The company clusters taking part in these clubs have reported financial savings combined with reductions in environmental impact. These results are disseminated to encourage further savings by the UK industry. This paper examines the savings as well as the costs involved in ten WMCs. It finds that there is a lack of standardization in the reporting of WMC results. This makes it difficult to evaluate the influence of WMCs, whilst also having an adverse effect on the credibility of waste minimization in business. Despite these problems, the paper finds that there is still strong evidence to suggest that these ten WMCs have been efficient in stimulating cost savings by industry, with an average rate of return on investment of 170%. It also finds that the financial benefits for companies are key outcomes of WMCs and that these benefits significantly exceed the estimated social benefits of the reduced environmental burden. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment.