Environmental, economic and social costs and benefits of a packaging waste management system: A Portuguese case study

The impact of the management of packaging waste on the environment, economic growth and job creation is analyzed in this paper. This integrated assessment intends to cover a gap in the literature for this type of studies, using the specific case study of the Portuguese packaging waste management system (SIGRE). The net environmental benefits associated with the management of packaging waste, are calculated using the Life Cycle Assessment methodology. The results show that, for the categories studied, the impacts associated to SIGRE's various activities are surpassed by the benefits associated to material and energy recovery, with special focus on recycling. For example, in 2011 SIGRE avoided the emission of 116 kt CO2 equiv. – the equivalent carbon emission of the electricity consumption of 124.000 households in Portugal. The economic impact of SIGRE is evaluated through Input–Output Analysis. It was found that SIGRE's activities also have a significant economic impact. For example, their added value are ranked amongst the upper third of the economic activities with highest multiplier effect at national level: this means that for each Euro of value added generated within SIGRE, 1.25 additional € are added to the rest of the economy (multiplier effect of 2.25). Regarding the social impacts of SIGRE, the number of direct jobs associated with the system is estimated to be more than two thousand and three hundred workers. Out of these, 83% are connected to the management of municipal waste packaging (selective collection and sorting), 15% are connected to the management of non-municipal packaging waste and only 2% are connected to the Sociedade Ponto Verde (SPV, green dot society in English) – the management entity responsible for SIGRE. In general terms, the results obtained provide quantitative support to the EEA (2011) suggestion that moving up the waste hierarchy – from landfilling to recycling – creates jobs and boosts the economy.