Economic Benefits of the Recycling Industry in Missouri

Abstract

The recycling, remanufacturing, and reuse industry (RRR) plays an important role in Missouri by reducing the use of raw natural resources and by reducing energy consumption. Recycling activities also provide important economic benefits beyond environmental benefits. The Missouri Recycling Economic Information Study (MOREIS), funded by the EnvironmentalImprovement and Energy Resources Authority (EIERA), was conducted to determine the extent of economic benefits of recycling for Missourians. A survey was conducted of potential recycling, remanufacturing, and reuse firms in the state. The surveydata along with data from the North American Industry Classification System (NAICS) were used to estimate the direct economic impact of the industry in Missouri. Secondary impacts were then calculated from the direct economic impact. The study examined four business sectors, recycling collection, recycling processing, recycling manufacturing, and reuse and remanufacturing. The four business sectors are subdivided into 26 business categories. Data gathered from a mail survey were used in 11 business categories, a calculation based on industry data for 2 categories, and existing data were drawn from the NAICS for the remaining 13 categories. The approach used here permits comparison with the United States Recycling Economic Information Study (USREIS) and other state studies that were based upon the methodology used in USREIS. Three levels of economic impact were used. Data are presented according to the direct effects (actual business employees, sales, and payroll), indirect effects (the effect of purchasing products and services from other business in order to produce a product), and induced effects (wages paid to employees in the direct and supporting industries that are available for employees to purchase goods and services). The induced effect is the total effect the industry has on the region.