Economic growth through recycled waste

A research project conducted last year by the Energy Research Centre at the University of Cape Town has underlined an opportunity for economic growth through the reintroduction of recycled waste into the market.

The project was funded by the Recycling and Economic Development Initiative of South Africa (Redisa).

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The centre’s findings suggested that recycling of waste products could play a major role in the economy through what they term ‘extended producer responsibility initiatives’.

The initial phase of the project interrogated the economic influence of a rise in commodity supply through recycled goods. Not only was the economic factor reflected on, but social and environmental benefits were also considered. These included removing waste from landfills and greenhouse gas emissions and less soil and water contamination.

The model was simple. It was to recycle, create jobs and contribute to the increase of gross domestic product, concurrently closing the gap in unemployment.

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The centre has projected an income increase of up to 0.6 per cent in households which is driven by increased returns in production factors and increased levels of employment.

As part of the research, the team looked at the Integrated Industry Waste Tyre Management Plan (IIWTMP) which revealed findings of a positive impact on the South African economy.

“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,” said the centre’s Reza Daniels.

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