Waste Management and Remediation Services

Sector Paper Presentation

27th Meeting of the Voorburg Group

Warsaw, PolandJohn B. Murphy

Assistant Division Chief for Classification ActivitiesU.S. Census Bureau

Overview

• Sources• Overview of Market• Classification• Turnover• Prices• Next Steps

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Sources

Turnover/Output Mini-presentations• Johan Ahman – Statistics Sweden• John Murphy – United States Census

Prices Mini-presentations• Denis Gac – INSEE, France • Aspasia Papa – Office for National Statistics, United Kingdom• Yeonsuk Park - Bank of Korea

Discussant Comments• Steve Drew - Office for National Statistics, United Kingdom

Country Progress Reports 2011-2012

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Overview of Market

Combination of public and private providers

- large providers (public or private) dominate some industries

- many small providers in other industries

Different practices by industry – hard to generalize within the sector or between countries

Mix of goods, services, and residuals

Generally growing in nominal terms

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Overview of Market

Market Size

Country Units Employment Turnover

USA 43,068 643,026 ≈€ 63 billion*

Sweden 965 12,815 ≈€ 3 billion

France 6,186 84,840 ≈€ 22 billion

* USA units and turnover exclude government operations, employment includes government, conversion rate €1.00 = $1.25 USD

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Industry Classification

Industry Classifications Reviewed

ISIC Rev. 4 6 industries

NACE Rev. 2.0 8 industries

JSIC 17 industries

ANZSIC 2006 5 industries

NAICS United States 10 industries

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Industry Classification Content similar, arrangement and organization differs

For example:• Septic tank services – ISIC sewerage, NAICS other

waste management services, JSIC domestic waste disposal

• Aggregations for solid waste collection vs. solid waste treatment and disposal for ISIC, NACE, NAICS and ANZSIC

• JSIC broken down by domestic vs. industrial• ISIC includes NACE includes class for dismantling or

wrecks, JSIC includes an industry for dead domestic animal disposal services

Overall, differences do make it hard to compare data with ISIC below the level of 37+38+39 for many countries

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Product Classification CPC Ver. 2.0 28 subclassesCPA 2008 68 subclassesANZSPC 9 productsNAPCS 128 products

Differences in the content and focus of products

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Classifications Findings

Product - Different approaches

- CPC focus on services only (in division 94)

- CPA has services and “tangibles”

- NAPCS focus on services – more detailed

Products vs. Waste/Residuals (as defined in the SEEA):

positive value = productno or negative value = residual

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Turnover Data Availability

Source: Voorburg Country Reports 2011 (23 reports) , 2012 (21 reports)

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Turnover

2011 Soon 2012

3700 - Sewerage 20 20 17

3811 - Collection of Nonhazardous Waste 19 19 19

3812 - Collection of Hazardous Waste 20 20 18

3821 - Treatment and Disposal of Nonhazardous Waste 20 20 18

3822 - Treatment and Disposal of Hazardous Waste 20 20 18

3830 - Materials Recovery 19 19 17

3900 - Remediation Activities 17 17 16

Turnover Measure turnover by industry or by product?– Private and public activity

– Substantial overlap in services provided across industries

Sources of Revenue– Fees for service

– Tax expenditures, PPP, etc.

– Revenue for products produced (e.g., electricity generated from a trash incinerator, methane gas from a landfill)

Unit to be Measured– Services rendered

– What about the value of recyclable materials and residuals?

– Expenses when covered by general tax revenues rather than direct revenue streams related to the services (not pay as you throw)?

Are growth trends real or substitution from government to private services?

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Turnover Best Practices

1.Cover both private and public activity

2.Industry and product turnover using census or sample

3.Delineate intermediate and final demand components

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SPPI Data Availability

Source: Voorburg Country Reports 2011 (23 reports) , 2012 (21 reports)

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Prices

2011 Soon 2012

3700 - Sewerage 7 8 5

3811 - Collection of Nonhazardous Waste 9 9 8

3812 - Collection of Hazardous Waste 5 5 3

3821 - Treatment and Disposal of Nonhazardous Waste 6 6 5

3822 - Treatment and Disposal of Hazardous Waste 6 6 4

3830 - Materials Recovery 4 4 5

3900 - Remediation Activities 3 3 1

SPPI Sources of Data

Various sources reported– Local governments

– Private providers

– Trade associations

Types of prices reported (services)– Fees for repeat services – actual transaction prices

– Contract prices

– Price of collection hour (no direct transaction only expenses)

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SPPI Best Practices

1.Pay attention to quality – quantities may or may not be price determining, changes in collection frequency, regulatory changes

2.Ensure that method used is appropriate if also used to proxy non-observable transactions (service from general taxes)

3.Care must be taken to match weights and prices coverage

4.Capture and price other outputs? (e.g., electricity, compost, methane)

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Waste Management Activities

Future •Review at lower levels, heterogeneous industries•Clarify definitions of products (products vs. residuals?)•Clarify scope – services are in scope, but tangible products (recyclable materials or new inputs, power, heat, methane, compost) ?

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Conclusion • Waste management covers multiple

industries and multiple processes• Turnover and pricing are more

straight forward for private providers• B2B generally has more private than

public activity• Hard to define best practices –

dependent on national market operation

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Questions?

John MurphyAssistant Division Chief for

Classification ActivitiesU.S. Census Bureaujohn.burns.murphy@census.gov

(301) 763-5172

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