Tim Worstall
Download 'Too Hot', an exclusive Specials track from iTunes
Yesterday The Times reported that the rising price of raw materials has finally made recycling a profitable industry. The turnover of the waste industry has jumped by two thirds in two years from £1.2 billion to £2 billion. But the notion that recycling makes economic sense is rubbish.
Some things are profitable to recycle, some things only make sense to recycle when we consider the environmental effects, some things we would be crazy even to try to recycle. Working out what falls into each category should be done by cost-benefit analysis. Add up all the costs, then all the benefits, and see which outweighs the other.
Local authorities in England are spending £3 billion a year dealing with 30 million tonnes of waste. We also see revenues from recycled rubbish of £2 billion a year.
However, there is one cost that no one acknowledges: the time spent preparing items for recycling. No one mentions it because it's done by you, free, in your own home.
The best estimate of the time that a household spends on sorting items for recycling - not only run-of-the-mill household rubbish but food and garden waste too - is 45 minutes each week. There are 24 million households, so that adds up to 900 million hours of unpaid labour every year. Unpaid, yes, but not of no value: thanks to the minimum wage, the Government forbids you from selling your time for less than £5.35 an hour. So the value of all that recycling by the general public must be worth at the very least £5 billion a year.
So our waste management system costs us £8 billion - and in return we get back £2 billion by selling the recycled goods. A £6 billion total cost.
If we did not sort to recycle then we would lose that revenue - but also be relieved of the unofficial cost of us all sorting through our rubbish. A non-recycling waste disposal system would cost us £3 billion. Recycling is therefore twice as expensive as simply throwing the whole lot into holes in the ground; and it thus makes us poorer.
So why do we do it? That brings in the EU and its laws that fine us if we don't become less reliant on using landfill. But we have no shortage of possible landfill sites: we dig up some 110 million cubic metres (mcm) of sand, gravel and clay every year; and each year we produce some 100 mcm of waste. We could stick the waste in those holes if it weren't for those European Commission fines.
Saving resources is good, of course. But in doing the sums we have ignored that most valuable resource of all, time. To be more precise, our time.
Tim Worstall blogs at timworstall.com
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
get two bins. It's not rocket science.
dougal, london,
The time it took to produce all these raw materials we're happily using up, like coal, oil, copper, etc., isn't reflected in their price. We pay to extract them, to refine them, to market and distribute them, but we didn't pay to create them in the first place. Try comparing that at £5.35 an hour.
A E Pfeiffer, London,
Surely by spending time recycling, and putting effort into other environmentally friendly actions we are preventing future generations from 'running out of time' thanks to the destruction of the planet around us.
This is a completely selfish way to view recycling - its only there to benefit us.
Jade Bestley, Oxford, England
This story of the time spent preparing items for recycling
is completely ridiculous. How much of this we should count in our day-by-day life?
The time spent dealing with annoying people, waiting for a bus, collect the foul of your dog from the street and reading useless newspaper articles.
Frank, London, UK
A full analysis should also include cost of driving to "recycling centres" with items that cannot be collected [here that includes glass for "health and safety reasons"] and water meter costs for washing things out. My recycling centre is a 10 mile round trip.
Deryk Mead, Colwall, England
There are a lot of things we do or have to do which does not involve timekeeping or money.
ian cheese, london, uk
This article makes the trivial mistake of forgetting the cost incurred when disposing of waste without recycling, so it doesn't make a meaningful comparison.
And who "sorts through" rubbish? We put the stuff in its bins as we go along, it doesn't take any longer than throwing it away.
Jamie G, Bolton, UK
By the same token, I suppose I should refuse to do the washing up, or the vacuuming, or any other household task, unless I get paid the minimum wage to do it.
Heaven forfend that we should ever just do our bit!
N Patrick, Cambridge,
What a load of rubbish, who threw away Tim's rubbish before he had to sort it? What Tim really needs to think about, if he is going to continue this hypothesis is what is the extra time required to think 'Is this a plastic glass or organic? If it takes him 45 mins he needs help...
J Purcell, London, UK
-"what value saving our one&only planet?"
Talk about spurious. If we don't recycle the planet is going to explode?? What are you smoking?
Stephen, London,
Please provide a source for your "best estimate" of 45 minutes.
Ruth, Reading, UK
You've missed the point-you value our time based on minimum wage considerations, which are spurious(what value saving our one&only planet?).The real calculations should be based on energy audits-how much glass, paper or plastic etc is needed to offset CO2 emissions when we drive to a recyling point?
simon, richmond, uk
'However, there is one cost that no one acknowledges: the time spent preparing items for recycling. No one mentions it because it's done by you, free, in your own home.'
Ah yes, another of the infamous "externalities". Added to the time spent taking out bins, which the dustmen used to collect.
Tom Welsh, Basingstoke,
Tim Worstall makes a helpful attempt to cost in the notional effort required but perhaps carries this forward too literally. But what is our time worth waiting for three men not to dig a hole in the road? These are economic factor for which we should take some account.
Peter York, Tonbridge, Kent
Recycling of most ordinary waste is a scam. The only way it can generate money is if the public, who pay to have their rubbish removed, sort, wash and package the rubbish free of charge.
MCO, Tromso, Norway
The Greenies expect us give up increasing amounts of our leisure time, to make these pointless ritualistic gestures of penance to their God.
No wonder enviromentalism is so popular with the toffs - they can get their servants to do it!
Steve, London,
Ridiculous. There are many things we do at home that we don't charge for. Personally, I spend no more than, say, 5 minutes a week putting bottles etc into a container. And the "opportunity cost" of that activity is effectively zero, i.e. I'm not sacrificing any potential money-making time.
Martin Auster, Armidale,
Contrarian codswallop. The basic premise is absurd. Who claims that sorting out recycling takes 45 minutes a week? Example: I get junk mail. I throw it in the paper box instead of the general rubbish bin. Recycling it takes me no more time than it would to throw it in the bin and send it to landful
Stu, London,
The minimum wage is an artificially "floor" for the price of labour. It is not the true minimum market price of all labour (markets have no minimum price - only the lowest price people will accept). Is time which I would otherwise spend watching trash tv worth £5.35? Er, no.
David Timson, Belfast, UK