A Charles River Associates analysis commissioned by Veolia estimates that a 1% shortfall in hazardous waste management capacity could reduce U.S. Gross output by $27 billion in 2033.
Hazardous waste management capacity ought to become a constraint on U.S. Industrial growth as production expands, as per to a new analysis via Charles River Associates (CRA) commissioned by Veolia.
The report, “Hazardous Waste Management: A Hidden Input to US Economic Growth,” examines the role of hazardous waste management across the U.S. Economy and estimates that the country generates more than 30 million tons of hazardous waste yearly.
As per to the analysis, a 1% shortfall in hazardous waste management capacity ought to reduce projected U.S. Real gross output in 2033 by $27 billion. A 3% shortfall could increase the projected effect to $82 billion.
The report ventures that U.S. Hazardous waste generation ought to increase by about 5 million tons per year by 2033. CRA attributes the increase in part to industrial reshoring as well as growth in sectors including semiconductor and battery production.
The analysis notes that hazardous waste is generated directly by many industries and also happens upstream in the manufacturing of materials and different inputs used at some point of the economy. The report specifically identifies food manufacturing, agriculture and chemicals used to produced pharmaceuticals among the activities that rely on hazardous waste management.
The findings suggest that waste treatment, disposal and recovery capacity will require to expand along industrial manufacturing to prevent waste-management constraints from affecting production activity.
“Hazardous waste management performs a far more important role in our economies than many people realize,” Estelle Brachlianoff, CEO of Veolia, stated in a declaration. “This analysis permits put that role into perspective and underscores why ensuring an expert, dependable management capacity is so vital to economic strength and resilience.”
Alan Jaske, associate principal in CRA’s Antitrust and Competition Practice and author of the report, stated the analysis shows that hazardous waste management is closely linked to economic activity and should be considered alongside environmental and industrial policy.
Why it Matters
Chemical plants generate dangerous waste via a range of production and maintenance activities, making waste treatment and disposal capability a part of the infrastructure needed to operate industrial centers. The potential increase in waste generation projected alongside U.S. production growth could create additional demand for treatment, disposal and resource-recovery services.
The CRA analysis was commissioned by Veolia, so its economic projections should be considered in that context. The full report presents the methodology and assumptions behind the expected $27 billion and $82 billion economic impacts.
