Material flows analysis The CBA presented in the Decision RIS considered both the economic impacts (costs and benefits) as well as relevant subset of financial (distributional) impacts. This approach reflects the fact that all costs and all market benefits associated with options will have a financial impact on one or more stakeholder group. However, financial transfers between stakeholder groups have been excluded from the CBA because they do not result in a net economic cost or benefit. To achieve this disaggregation required integration of the CBA model with a material flows analysis, noting that the physical flow of packaging waste ultimately drives many (although not all) of the costs, benefits and distributional impacts of the options (see Figure 8). Costs and benefits that have been assessed in the CBA are set out in Table 25. Categorisation of costs and benefits is not rigid and, in practice, a number of the variables listed as costs will present in the analysis as avoided costs (i.e. benefits) for at least some options. Table 25: Costs and benefits Costs Benefits Administration costs Avoided landfill costs government regulation development, garbage collection and transport administration and enforcement landfill operating costs scheme administration landfill externalities avoided administration costs Avoided costs of litter Recycling and litter infrastructure and operating costs Value of recovered material/recyclates recycling infrastructure and operations paper/cardboard recycling and waste collection and transport glass MRF processing plastics litter programs steel cans (Thirst for Good only) Participation costs aluminium cans households engaged in recycling Employment benefits businesses engaged in recycling Health and harm to others community engaged in cash for cans beverage and retail industry costs compliance and transition costs producer surplus impacts Consumption related consumer surplus costs
Material flows analysis The CBA presented in the Decision RIS considered both the economic impacts (costs and benefits) as well as relevant subset of financial (distributional) impacts. This approach reflects the fact that all costs and all market benefits associated with options will have a financial impact on one or more stakeholder group. However, financial transfers between stakeholder groups have been excluded from the CBA because they do not result in a net economic cost or benefit. To achieve this disaggregation required integration of the CBA model with a material flows analysis, noting that the physical flow of packaging waste ultimately drives many (although not all) of the costs, benefits and distributional impacts of the options (see Figure 8). Costs and benefits that have been assessed in the CBA are set out in Table 25. Categorisation of costs and benefits is not rigid and, in practice, a number of the variables listed as costs will present in the analysis as avoided costs (i.e. benefits) for at least some options. Table 25: Costs and benefits Costs Benefits Administration costs government regulation development, administration and enforcement scheme administration avoided administration costs Recycling and litter infrastructure and operating costs recycling infrastructure and operations recycling and waste collection and transport MRF processing litter programs Participation costs households engaged in recycling businesses engaged in recycling community engaged in cash for cans beverage and retail industry costs compliance and transition costs producer surplus impacts Consumption related consumer surplus costs Avoided landfill costs garbage collection and transport landfill operating costs landfill externalities Avoided costs of litter Value of recovered material/recyclates paper/cardboard glass plastics steel cans (Thirst for Good only) aluminium cans Employment benefits Health and harm to others
final_decision_ris.docx