Waste generation per $ of gross domestic product
A simple metric for tracking the circularity of an economy over time. Word of caution: it doesn’t account for waste from imported goods!
Scope: the circularity of a whole economy (can be a national economy or a regional/state economy)
Who this metric is interesting to: national governments, state/regional governments
Calculation method: the total amount of waste generated (tonnes/year) divided by gross domestic product (GDP, $/year)
What it tells you
How the circularity of a country or region/state changes over time.
For example: Australia’s GDP is A$1.9 trillion and it generates 64 million tonnes of waste. In 5 years from now, if Australia’s GDP is still A$1.9 trillion but it only generates 50 million tonnes of waste, then this metric suggests Australia has become more circular.
Limitations
This metric doesn’t account for waste from the production of imported goods. Many high-income countries import consumer goods (like electronics, clothing) and equipment (e.g. parts, machinery). However, the waste associated with producing these goods is not counted in the importing country’s waste generation statistics.
This metric does not measure the absolute circularity of an economy, nor should it be used to compare the circularity of different economies. Instead, it is helpful for tracking the circularity of an individual economy over time.
This metric is high-level. It doesn’t provide insights on which sectors of the economy are becoming more (or less) circular.
All wasted resources are treated equally on a weight basis. For example, a tonne of soil is treated the same as a tonne of aluminium. This approach doesn’t recognise differences in the economic value (or environmental value) of wasted resources.
Practicality of measuring
Data on GDP is typically published by governments.
Waste generation data can be gathered using a range of methods. For example, tonnages on waste and recycling volumes can be gathered from waste and recycling facility operators - using weighbridge data or volumetric estimates.
Gathering waste generation data is time intensive. It requires cooperation with the waste and recycling industry, or regulation that mandates reporting of tonnages.
Take care to ensure there is no ‘double counting’ of waste and recycling tonnages across waste and recycling facilities.
Leaving thoughts
National and state/regional governments can use waste generation per $ GDP to track the circularity of their economy over time. Many countries already collect data on waste generation and GDP, so it can be easily calculated. But perhaps a more useful metric is waste generation per $GDP by industry (e.g. agriculture, mining, accomodation and food services, etc). This measures the circularity of individual industries over time, revealing which sectors need more help on their journey from linear to circular. But that’s for another post!