This report by the New Zealand Institute of Economic Research (NZIER) assesses the costs and benefits of changes to the waste disposal levy (‘waste levy’). The report was commissioned by the Ministry for the Environment to help assess potential options for changes to the existing waste levy, which is established under the Waste Minimisation Act 2008. The report models potential changes in waste disposal that might arise as a result in an increase in the cost of disposal (including disposal to alternative landfill types and to recovery activities such as increased recycling, composting and reuse).
This report by the New Zealand Institute of Economic Research (NZIER) assesses the costs and benefits of changes to the waste disposal levy (‘waste levy’). The report was commissioned by the Ministry for the Environment to help assess potential options for changes to the existing waste levy, which is established under the Waste Minimisation Act 2008. The report models potential changes in waste disposal that might arise as a result in an increase in the cost of disposal (including disposal to alternative landfill types and to recovery activities such as increased recycling, composting and reuse).
Note this report has been updated to incorporate modelling of additional options following consultation input. The revised report also corrects an error made in the original report relating to how greenhouse gas emissions were accounted for in the cost-benefit calculations.
NZIER have modelled costs and benefits of changes to the waste levy based on published estimates of the numbers and types of landfills present in New Zealand. In our consultation document, Reducing waste: a more effective landfill levy, we have used revised estimates of the numbers and types of landfills, based on:
- revisions to the Technical Guidelines for Disposal to Land (updated August 2018) [wasteMINZ website], which now use 5 landfill classes, rather than 4
- engagement with regional councils in 2019 to update previous surveys of consented fill sites.
The options modelled by NZIER correspond to the following options in the consultation document:
- Option A: NZIER model option no. 1
- Option B: NZIER model option no. 5
- Option C: NZIER model option no. 6
- Option D: NZIER model option no. 4.
NZIER options 2 and 3 modelled alternative scenarios that were not included in the consultation document.
In this revised version, additional options are included:
- NZIER model option no. 7
- NZIER model option no. 8
In June 2020, Cabinet agreed proposals for the expansion and increase of the waste levy. The option chosen was most similar to option 8 of the options modelled by NZIER. The changes agreed by Cabinet have now been reflected in new regulations [New Zealand Legislation website].