This report was provided to ASBG by a member as it contains interesting research on the impact of a proposed waste levy on the steel recycling industry in Victoria. 

On the surface most people would consider a waste levy would support recycling, but in fact the reverse is true.  Why? Because a levy increases the cost of recycling as all recycling generates a waste stream.  Hence, recycling where a levy applies is more expensive than where it does not.  The attached 2007 report states it costs the Victorian steel recycling industry $783,000 annually for each $15/t of waste levy added.  In additional the report also provides the highly negative environmental outcomes of replacing scrap steel with virgin materials. 

The issue then becomes an economic one based on long haul transport.  Export of steel recyclate (the input stream to steel recycling plants) to China is becoming more close to the tipping point. 

How environmentally perverse would that be.  Exporting scrap recyclate to China, when NSW has a major steel industry!

Note this is a large file, 9 Mb, please use this link to down load the report.

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