Month: January 2023

Categories
Circular Economy Economics Policy Waste Management

Takeaways the key to a circular economy?

Following the NSW Government’s released of an independent review of its resource recovery framework and implications for the circular economy, three key takeaways struck me:

  • The review identified friction between the environment and safety objectives of the existing NSW waste and resource recovery framework and the need for flexibility to support innovation and a smooth transition to a circular economy.
  • A key criticism of the EPA was their handling of the revocation of the mixed waste organic material (MWOO) exemption in 2018. This led to recommendations for the resource recovery regime to be put on a similar footing to environmental and planning approval regimes.
  • The debate over the definition of waste continues, as the broad interpretation in the case of EPA v Grafil has potentially slowed the advancement of the circular economy.

The Review made a recommendation that the EPA should investigate a pathway to enable an “end-of-waste” outcome for suitable common, low-risk recovered materials to better enable reuse and promote circularity.

There were many other matters raised in the review, highlighting the challenges of both resource recovery and closing the loop between waste and input to future production processes.

You can read the full report here.

The balance between environmental protection, regulation to achieve that and innovation to drive the emergence of the circular economy is still being worked out.

How do you think this is being played out in other jurisdictions? What tradeoffs have to be made between effective environmental regulation and commercial innovation to achieve the circular economy?

Categories
Economics Local Government Lytton Advisory Waste Management

How do local governments manage waste costs?

Staying on top of municipal waste costs is a significant challenge for many local councils.  There are several ways local governments can manage these costs.

Implementing recycling programs: By promoting and facilitating recycling, local governments can reduce the amount of waste going to landfills, which can help lower disposal costs.

Negotiating contracts with waste management companies: Local governments can negotiate contracts with waste management companies to secure lower prices for waste disposal.

Implementing pay-as-you-throw programs: These programs charge residents based on the amount of waste they generate, encouraging them to reduce their waste and lower their costs.

Promoting waste reduction: Local governments can promote waste reduction initiatives, such as composting, to reduce the overall amount of waste generated in the community.

Partnering with private sector companies: Local governments can partner with private sector companies to create new waste management technologies or recycle more materials.

Implementing waste-to-energy programs: Some local governments have implemented waste-to-energy programs, which use waste as a fuel source to generate electricity, reducing the need for traditional fossil fuels and lowering energy costs.

To what extent is your local government doing some, all or even more than this?

Categories
development Economics Infrastructure Lytton Advisory

Appointment

Lytton Advisory is pleased to advise that in December 2022 Craig Lawrence was appointed as a consultant to the Pacific Regional Infrastructure Facility (https://www.theprif.org/what-we-do).

He will be assisting PRIF by helping Pacific Island states develop national infrastructure investment plans to drive economic and social development.

Craig is Managing Director of Lytton Advisory. For the past nine years he has led teams of economists examining infrastructure and public policy issues.

Categories
Cost Benefit Analysis Economics

Opportunity Cost

Like many folk over the summer holiday, I played around with ChatGPT, a natural language AI.

Being an economist, I asked for the meaning of Opportunity Cost, a foundation concept in economics. The response was deadly boring.

So I asked it to flick a switch and give it as a sonnet:

Opportunity cost, a term so fine,
Refers to the cost of choice not made,
The next best option left behind,
When one decision is the one laid.

It’s something we encounter every day,
From big choices to the small and meek,
But often we don’t stop and weigh
The cost of what we choose to seek.

So think before you act, consider well,
The path you take and what it means to stray,
For opportunity cost will dwell
In every choice you make, come what may.

So choose with care and wisely weigh,
The cost of all the options in play.

ChatGPT

This might be all a bit too much for those in the C Suites, so here is your executive haiku:

Opportunity lost

When a choice is made and done

Cost of the next best.

ChatGPT

Enjoy!

Categories
Economics Infrastructure Lytton Advisory

Good Infrastructure in the Pacific

Map of Pacific Islands and Australia

Pacific Island nations have complex requirements for infrastructure.  It is tempting but foolish to see similarities and simply apply a one-size-fits-all.  

However, the best combination of infrastructure assets for Pacific Island nations will depend on the specific needs and resources of each individual nation. In general, however, there are a few key types of infrastructure that are important for the development and well-being of Pacific Island nations.

Transportation infrastructure: This includes roads, ports, airports, and other transportation networks that are necessary for the movement of people, goods, and services within the country and to other countries.

Energy infrastructure: This includes power plants, transmission and distribution networks, and other facilities that are necessary for the generation and distribution of electricity.

Telecommunications infrastructure: This includes networks of communication towers, cables, and other equipment that are necessary for providing telephone and internet services to the population.

Water and sanitation infrastructure: This includes systems for the treatment, distribution, and collection of water, as well as sewage treatment facilities and other infrastructure related to sanitation.

Health care infrastructure: This includes hospitals, clinics, and other facilities that are necessary for providing health care services to the population.

Educational infrastructure: This includes schools, universities, and other institutions that are necessary for providing education to the population.

It is important for Pacific Island nations to have a balanced and well-developed infrastructure system in order to support economic growth, improve living standards, and enhance the overall well-being of the population.  It means having an approach that enables strategic consideration and appraisal of a diverse combination of assets across a diverse set of countries.