A new independent analysis by experts at Charles River Associates (NASDAQ: CRAI) commissioned by Veolia, a leader in environmental services, illustrates the important role that hazardous waste management plays as an input to production across the economy.
The report, “Hazardous 91TV Management: A Hidden Input to US Economic Growth” examines hazardous waste management and its importance to the US economy, with virtually all goods and services in the United States either producing hazardous waste directly in their production or critically relying on inputs that do, including food production, agriculture and chemicals used to manufacture life-saving medicines.
According to the report, the United States generates over 30 million tons of hazardous waste annually, equivalent to 200 pounds per person nationwide. The role of hazardous waste management is likely to become increasingly important in the coming decade as the US economy is poised to generate an additional 5 million tons per year as soon as 2033.
This increase will be a natural result of industrial reshoring policies as well as intended growth of emerging strategic sectors such as semiconductors for computer chips and batteries for vehicles. Ensuring management capacity can accommodate growth in all these strategic sectors is critical to sustaining future industrial expansion and economic growth.
The report finds that a management capacity shortfall of 1 to 3 percent could threaten between $27-82 billion in US economic output over the next decade. “Hazardous waste management plays a far more important role in our economies than many people realize,” said Estelle Brachlianoff, CEO of Veolia. “This analysis helps put that role into perspective and underscores why ensuring an expert, cutting-edge, reliable management capacity is so important to economic strength and resilience. The question is not whether demands on hazardous waste management capacity will increase as the economy grows, but what needs to be done for the capacity to keep up.”
“Proper treatment and disposal of hazardous waste helps protect public health while advancing the economy,” said Bob Cappadona, President and CEO at Veolia North America. “During National Pollution Prevention Week, we’re particularly proud to highlight the role we play in protecting people and the planet through our treatment processes, helping recover valuable resources while preventing pollution from entering the environment.”
“One of the clearest findings of the report is just how ubiquitous hazardous waste management is across the economy, with a large number of everyday products depending on it somewhere in their production,” said Alan Jaske, author of the report and Associate Principal in CRA’s Antitrust and Competition Practice. “The ability to effectively manage hazardous waste is therefore a material consideration not only for environmental policy and public health, but also for industrial activity and economic growth.”