Effects of the increase in the danish waste tax

Summary

1997-1998

In 1997, a substantial increase in the Danish waste tax took effect. The present report takes stock of the development in taxable waste amounts for the years 1997 and 1998 on the basis of data from the Customs and Tax Regions on waste delivered to and removed from treatment plants. Due to more types of waste becoming taxable in 1997 and 1998, the overall amount of taxable waste increased by 7 per cent. However, for municipal waste treatment plants (landfills and incineration plants) a decrease of at least 0.5 per cent in net taxable waste was registered from 1996 to 1998. In the same two years the growth in production and consumption attained 7 per cent, so the stagnation expresses an actual de-coupling of taxable waste generation and economic growth. In addition, for the first time in several years, taxable waste from industry and commerce does not show an increase, but a decrease of 2 per cent from 1996 to 1997.

Diversion from landfill to incineration

The significant differentiation of the tax, which favours incineration compared to landfill, has made it possible to reduce costs by diverting waste from landfill to incineration, and it seems to have been a popular alternative to increased recycling. The modest decrease in taxable waste delivered to municipal plants is divided equally between domestic and industrial/commercial waste, just as the diversion from landfill to incineration is similar in the two sectors. However, the landfill share of 58 per cent is still rather high within commerce and industry, whereas for domestic waste etc. it is only 6 per cent.

Focus on industrial and commercial waste

On the basis of green accounts and interviews, a detailed analysis of waste management data from eleven enterprises with about 30 production units has been carried out. The enterprises analysed are generally larger and more professional than the average with regard to environmental aspects, but apart from one untypical enterprise there is no remarkable difference between the development in taxable waste amounts at these enterprises and the national average.

Considerable differences between recycling rates

Considerable differences between recycling rates have been found, ranging from high (up to 90 per cent) for traditional ’chimney-industries’ such as iron and metal, shipyards, breweries etc., to low (down to 5 per cent) for the plastic and pharmaceutical industries. The decisive factor for improvements in recycling rates seems to be the financial performance of the enterprise. Enterprises with growth in turnover have in most cases improved their recycling rates, while enterprises experiencing a decline in turnover, paradoxically, do not improve their waste management performance.