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Reducing plastic production: Economic loss or environmental gain?

Published online by Cambridge University Press:  30 January 2024

Mateo Cordier*
Affiliation:
Research Centre Cultures–Environnements–Arctique–Représentations–Climat (CEARC), Université de Versailles-Saint-Quentin-en-Yvelines, Université Paris-Saclay, Guyancourt, France
Takuro Uehara
Affiliation:
College of Policy Science, Ritsumeikan University, Osaka, Japan
Bethany Jorgensen
Affiliation:
Civic Ecology Lab, Department of Natural Resources, Cornell University, Ithaca, NY, USA
Juan Baztan
Affiliation:
Research Centre Cultures–Environnements–Arctique–Représentations–Climat (CEARC), Université de Versailles-Saint-Quentin-en-Yvelines, Université Paris-Saclay, Guyancourt, France
*
Corresponding author: Mateo Cordier; Email: mateo.cordier@uvsq.fr
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Abstract

We reviewed economic and environmental studies on global plastic pollution and we estimate the global cost of actions toward zero plastic pollution in all countries by 2040 to be US$ 18.3–158.4 trillion (cost of a 47% reduction of plastic production included). If no actions are undertaken, we estimate the cost of damages caused by plastic pollution from 2016 to 2040 to be US$ 13.7–281.8 trillion. These ranges suggest it is possible that the costs of inaction are significantly higher than those of action. Plastic product sales will also generate a global benefit in the form of incomes (salaries, dividends etc.) estimated to be US$ 38.0 trillion over 2016–2040 in the case of inaction, and US$ 32.7–33.1 trillion in case of action. Calculating benefit minus costs provides the net benefits: US$ −120.4 to 19.7 trillion in case of action and US$ −243.8 to 24.3 trillion in case of inaction. Net benefit ranges suggest action and inaction will both be beneficial when considering the high estimates. However, the low estimates show net benefits might be negative, which suggests inaction might generate a net cost for society that will be twice the cost of action. Our estimates are preliminary (several cost and benefit data are lacking).

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Type
Overview Review
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
© The Author(s), 2024. Published by Cambridge University Press
Figure 0

Figure 1. Global cumulative discard of plastic waste inadequately managed over 1950–2060 – BAU scenario. Note: MMT: million metric tons. The curves are computed summing over time global annual discard of inadequately managed plastic waste (Supplementary Figure S1) provided by Lebreton and Andrady (2019), Lau et al. (2020), Cordier et al. (2021) and Yan et al. (2022).

Figure 1

Figure 2. Global plastic debris accumulated over time in terrestrial (upper graph) and aquatic (lower graph) ecosystems over 1950–2060 – BAU scenario. Note: Aquatic ecosystems include lakes, rivers and oceans globally. The curves are obtained summing over time annual emissions of plastic waste into the ecosystems (Supplementary Figure S2) provided by Borrelle et al. (2020), Lau et al. (2020) and the OECD (2022). The OECD (2022) also provides accumulated values in 2019 and 2060. We used them to cross-check our computation method and make sure we did not make any mistakes.

Figure 2

Figure 3. Global plastic debris accumulated over time in aquatic ecosystems disaggregated into oceans (upper graph), plastics floating in rivers (middle graph), and plastics sinking on riverbeds and lakebeds (lower graph) – BAU scenario. Note: The curves are obtained summing over time estimations of annual emissions of plastic waste (Supplementary Figure S3) provided by Lebreton et al. (2019). The other models directly provided accumulated values (Jambeck et al., 2015; Cordier and Uehara, 2019; OECD, 2022).

Figure 3

Table 1. Global cost forecast of plastic pollution impacts (in case of inaction) and plastic pollution reduction strategies (in case of action toward zero plastics in ecosystems by 2040)

Figure 4

Figure 4. Comparison of global total cost of action (left bars) and inaction (right bars) over 2016–2040. Note: The graph is based on data from Table 1. The lower estimates suggest the cost of inaction (US$ 13,711 billion) is slightly cheaper than the one of action (US$ 18,318 billion). However, given the costs and benefits calculated and the missing data (discussed in Section “Discussion and conclusion”), it is not clear that the total cost of action is substantially higher than the one of inaction. Given the incomplete nature of this analysis, it is possible that the total cost of inaction is substantially higher as suggested by the high estimate (inaction cost: US$ 281,802 billion, which is significantly more expensive than action cost: US$ 158,418 billion).

Figure 5

Table 2. Global benefits earned from plastic production in case of “Inaction” and “Action” scenarios (scenarios described in Table 1)

Figure 6

Figure 5. Comparison of global total net benefit of action (left bars) and inaction (right bars) over 2016–2040. Note: The graph is based on data from Table 2. Net benefit = benefit earned from plastics minus costs. The low estimate of net benefits in the “Action” and “Inaction” scenarios are both negative, which means an economic loss (i.e., a cost). For the “Inaction scenario,” this means that the benefits obtained from the plastic industry are not sufficient to offset costs of plastic pollution impacts caused by inaction. For the “Action scenario,” the economic loss (i.e., the negative net benefit) is significantly lower than in the “Inaction scenario.” This is because every year over 2021–2040, actions are implemented to reduce plastic pollution to approach the zero level in the ecosystems by 2040, which gradually reduces costs of plastic pollution impacts. These calculations should be repeated in further studies, when more data on costs and benefits become available (see missing data listed in Table 1), in order to check whether the low estimate of the net benefit of the “Action scenario” becomes positive. The high estimate of net benefits earned in the “Action” and “Inaction” scenarios are both positive, which represents an economic gain. For the “Action scenario,” this suggests that actions toward zero plastics pollution by 2040 is profitable for society because reduced cost of damages resulting from plastic pollution reduction strategies are sufficient to offset costs of actions. The high estimate of the net benefit in the “Inaction scenario” is slightly higher than in the “Action scenario.” This is because in the calculations of the “Inaction scenario,” production is not reduced and, as a result, the benefits obtained from the plastics industry appear to more than offset the costs of the impacts of plastic pollution caused by inaction. However, given the incomplete nature of this analysis (several cost and benefit data are lacking as discussed in Section “Discussion and conclusion”), it is not clear that the high estimate of the net benefit of inaction is substantially higher than the one of action. On the contrary, when more data will be made available, further studies might show it is possible that the net benefit of inaction is substantially lower than the one of action.

Figure 7

Figure 6. Cost of plastic pollution reduction policies as simulated in the global ambitious policy scenario by the OECD (2022, p. 198). Note: Costs are expressed as a percentage of Gross Domestic Product (GDP). World regions that are part of the Global South are in red and Global North regions are in blue. The black bar shows the world average cost (average calculated across all countries).

Supplementary material: File

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Author comment: Reducing plastic production: Economic loss or environmental gain? — R0/PR1

Comments

Dear Professor Fletcher (Editor-in-Chief),

Dear Editors,

I submit an overview review article for publication in Cambridge Prisms: Plastics, titled “Reduction in plastic production: Economic loss or environmental gain?”.

With my co-authors, we have been reviewing the literature on costs of plastic pollution reduction interventions and costs of global damages caused by plastics. However several costs of plastic pollution reduction interventions were missing and we had to make additional computations, based on existing data. For example, we developed a global macroeconomic model to simulate the economic impact of reducing global plastic production by 47% as suggested by Lau et al. (2020) in their article published in Science in which they evaluate scenarios toward zero plastic pollution. This allowed us to estimate the ecological transition cost for the private sector. This is why we submit and overview review article, which allows manuscripts of 5000-10000 words. This amount of words is needed to describe the additional computations we did. We also had to calculate the amount of accumulated plastic debris since 1950 in the ecosystems since only annual emissions have been provided in most publications we reviewed. And yet, calculating costs of ecosystem clean up requires accumulated amounts.

Our overview review suggests that reducing plastic production by 47%, replacing plastic products with alternative materials, improving waste collection and treatment, and cleaning up the ecosystems, will certainly produce an environmental gain, but could also result in an economic gain, not an economic loss. Implementing all these interventions globally would cost between US$ 12.1 and US$ 21.9 trillion over 2016-2040, meaning that the cost of action is roughly between the GDP of the EU and the US in 2020. This may seem like a lot. However, if we do nothing to address plastic pollution, the cost of global environmental damages could be up to 11 times the cost of action.

We are looking forward to hearing from you and receiving your comments.

Sincerely,

Mateo Cordier

Review: Reducing plastic production: Economic loss or environmental gain? — R0/PR2

Conflict of interest statement

Reviewer declares none.

Comments

The authors present an analysis to compare the economic cost of actions to address/prevent plastic pollution globally (“cost of action”) with the net cost of environmental damages minus the contribution of the plastics industry to GDP in a business-as-usual scenario (“cost of inaction”) from 2016-2040. They estimated the costs of action based upon the “system change scenario” estimate given by Lau et al. (2020), with additional newly calculated costs including the “transition cost” of the plastics industry given a 47% reduction in plastic production, and the cost of total cleanup of all accumulated plastic waste in aquatic (floating plastic waste only) and terrestrial ecosystems. They compared this to the cost of environmental damage caused by plastic pollution, estimated by multiplying Beaumont et al.’s (2019) annual environmental cost estimate ($ per tonne of plastic in the marine environment) by the amount of inadequately managed plastic waste leaked into the ocean (from a variety of published estimates), then subtracting the economic benefit of the plastics industry (contribution to global GDP), to give the “cost of inaction”. This analysis is timely and interesting, but I think aspects of the methodology need further explanation, and the results require more critical interpretation, especially given the enormous range between low/high estimates of the net cost of inaction.

Abstract: The first half of the abstract seems to report on previous work that is used for the new analysis presented in the second half of the abstract. This should be made clear so the reader understands what are the new results (and/or how previously published results were used).

- In lines 21-22, for clarity I suggest, “The higher cost estimate suggests...” rather than “The higher margin suggests...”, and the statement should be balanced by also reporting the consequence of the lower cost estimate (which is actually a net gain, and which may not be intuitive).

Lines 62-66: See Ward and Reddy 2020 (doi: 10.1073/pnas.2008009117) for a robust discussion about environmental persistence estimates.

Line 69: Suggest citing Jambeck et al. (2015) here, since they developed the initial framework to estimate inadequately managed plastic waste.

Figure 2: The OECD estimates appear to be curves, not a linear fit to a start and end point, as described.

Lines 98-109: This discussion seems more appropriate for the introduction, as it is more contextual than a consequence of the results described in this section.

Lines 159-161: I think “rather unlikely” is an understatement, given that plastics are materials used in virtually every sector of manufacturing and use. If plastics production were to cease entirely, there would be a massive disruption in society, well beyond unemployment and lost sales. Is this somehow captured?

Lines 184-190: Are you suggesting that Lau et al. made an error in their calculation? What is the nature of the error?

Lines 210-211: How does reduced plastic production result in cost savings? Isn’t this counter to the argument in section 1?

Lines 225-230: The seems like an incomplete estimate, or at least dependent on where you draw the boundaries around economic cost/growth. Does the “transition cost” simply reflect loss due to reduced sales? I agree that if production of “traditional” plastics were to decrease by 47% over a 20-year period (2020-2040), that this would result in an economic loss to that industry without a shift in production to an alternative. However, given the vast array of market applications of plastics (broadly), there would necessarily be growth in the “alternative” materials market that would offset the losses in the traditional plastics industry. To estimate one without the other paints an in complete picture.

Lines 235-239: I imagine that the cost to cleanup terrestrial ecosystems could be greater than to clean beaches, simply because of the increased complexity of the landscape and reduced accessibility (note that most beach cleanups are carried out on easily accessible, sandy beaches). Has anyone estimated the cost of litter cleanup along roadways or in rural vs. densely populated areas, for example?

Lines 340-342: I don’t see how the data support a clear case for action (where “action” is only loosely defined), since the “low estimate” finds a net economic benefit of the “inaction” path. The orders of magnitude discrepancy between the low and high estimates in the “inaction” scenario suggests that more information is needed to inform decisions about the scale and scope of actions, even if solely based on economics. While I don’t disagree that serious action is warranted to stem plastic pollution, hard decisions will have to be made based on not only (still largely unconstrained) econmics, but also on changes “society” (public, government, industry) is willing to undertake.

Lines 354-357: Suggest moving this into previous paragraph immediately after the statement about the cost being underestimated. Further, the statement that the cost of damage to terrestrial ecosystems is likely to be higher than that for marine ecosystems needs justification. For example, the terrestrial environment covers only ~30% of the earth’s surface.

Lines 359-372: See Landrigan et al. 2023 (doi: 10.5334/aogh.4056). However, there is likely a cost associated with a global reduction in plastics production as well, given the widespread use of plastics to improve human health (e.g., medical use, food preservation, reduced greenhouse gas emissions due to light weighting, etc.).

Section 4.3 of the discussion strays away from the quantitative analysis into anecdotes and opinions about the existing plastics industry, which may or may not be justified.

SM section 3: The description of input-output equations needs much more detailed explanation for the reader who has not encountered this approach before. The description of the variables is mathematical in nature, and does not describe at how this model is applied to the estimate presented in the manuscript - e.g., what data (type, quality, etc.) are used as inputs to the model, what are the quantitative outputs, how are uncertainties or confidence intervals assessed, etc.?

Recommendation: Reducing plastic production: Economic loss or environmental gain? — R0/PR3

Comments

No accompanying comment.

Decision: Reducing plastic production: Economic loss or environmental gain? — R0/PR4

Comments

No accompanying comment.

Author comment: Reducing plastic production: Economic loss or environmental gain? — R1/PR5

Comments

Prof. Steve Fletcher

Editor-in-Chief

Prof. Alessandro Stocchino

Handling editor

Cambridge Prisms: Plastics

Paris, the 29th of June 2023

Re : revision of our article PLC-22-0025 entitled “Reduction in plastic production: Economic loss or environmental gain?” submitted to Cambridge Prisms: Plastics.

Dear Professors Fletcher and Stocchino,

Thank you very much for giving us another opportunity to revise our manuscript, PLC-22-0025 entitled “Reduction in plastic production: Economic loss or environmental gain?”. We did our best to respond to all the comments and suggestions provided by the reviewers.

In the revised version of the manuscript, we also mentioned the results published recently in the UNEP report (2023) “Turning off the tap” and compare the report’s results to ours.

We look forward to hearing from you at your earliest convenience.

Sincerely,

Mateo Cordier

Review: Reducing plastic production: Economic loss or environmental gain? — R1/PR6

Conflict of interest statement

No competing interests.

Comments

The paper submitted by Cordier and colleagues represents an important, if preliminary, assessment of the relative social and economic costs of ambitious efforts to reduce plastic from the global supply chain. Conducting benefit/cost calculations can only help to illuminate the complex nature of the system-level changes necessary to meaningfully reduce global plastic pollution.

When asked to serve as a new reviewer for a paper passing through the process for a 2nd time, I tend to focus on revisions and suggestions made by the initial reviewer, rather than provide a new, potentially contradictory, assessment of the suitability of a manuscript for publication. In this case, I believe the authors responded appropriately to the initial round of reviewer comments, which I would argue has improved the condition of the manuscript. I do have some minor editorial comments:

- The preliminary and incomplete nature of the assessment should be highlighted – if not in the title, certainly in the abstract. As is clear from table 1, entire categories of costs and benefits are excluded, and there is (understandably) little included with respect to the nature of trade-offs (costs and benefits) of transitioning to alternative materials. The important of missing benefits categories should be recognized throughout the text as well – since quantitative statements are at best incomplete. E.g., Line 140-142 -

- I believe the concepts of financial and social costs are somewhat vague in the manuscript, and should be delineated more clearly. For example, expenditures associated with waste collection are a known financial cost – money is exchanged. In comparison, estimated damages to ecosystem services are typically estimated (as is the case in many of the papers underlying the overall damage assessments) as social, typically nonmarket costs. Although reporting both is encouraged and correct, being clear about which values represent market/financial costs and those based upon social costs is essential to achieving message clarity and accuracy. It will also undoubtedly help mitigate against (likely) industry messaging and pushback against a central message of the paper.

- Although note that data from the Lau et al. 2020 paper are publicly available in Zenodo at: 10.5281/zenodo.3929470. Ideally, the repository should be cited to promote FAIR data principles and ease future work. All data communicated by the paper’s author are in the repository. [This requires minor changes in the caption to Figure S2 of the supplement and line 210 of the manuscript]

In the case of this manuscript, however, I believe there are some essential components of the preliminary benefit/cost analysis that must be addressed to ensure the analysis – in particular the relative benefits and costs to society – are meaningful. I do not believe they should be difficult to incorporate into the analysis, but I think would meaningfully defend the paper from what would be immediate and relevant criticism from relevant stakeholders. It is not infeasible to believe that making these changes could alter the directionality of the preliminary benefit/cost calculation conducted. Specifically:

- The social costs of damage to marine ecosystems is not included in the “action scenario”. Since plastic pollution does not cease – even by the end of the 2040 modeling period used in the Lau et al. 2020 paper, these costs should be included.

- The human health costs of plastic are not included in the “action scenario”. Since plastic production will continue – and grow through time relative to 2020 production numbers – these values should also be included.

- Using 5- and 10-year transitions to achieve a 47% reduction in plastic creates a mismatch in terms of how Lau et al 2020 calculated costs to governments for waste managements (which is extrapolated to estimate upper/lower waste management costs – and inclusive of costs associated with the waste management of alternative materials), and the modeled economic costs (in terms of reduced growth) for plastic producers. Notably, data from Lau et al suggest that global virgin plastic production does not decline below 2016 levels until 2038 under the system change scenario. This has substantial impacts in terms of messaging (e.g., in discussing impacts to workers, etc.).

- Ignoring the economic impacts of the transition to substitute materials in I/O models. The underlying mass of substitute materials in the Lau et al “System Change Scenario” are available in the Zenodo repository noted above.

Conceptually, these changes are minor. I realize, however, that they may result in substantial revisions to the numbers presented in the manuscript (and – given that this is a 2nd round of reviews – I deeply apologize to the authors for the frustrations of the review process!).

Recommendation: Reducing plastic production: Economic loss or environmental gain? — R1/PR7

Comments

No accompanying comment.

Decision: Reducing plastic production: Economic loss or environmental gain? — R1/PR8

Comments

No accompanying comment.

Author comment: Reducing plastic production: Economic loss or environmental gain? — R2/PR9

Comments

Dear Professor Fletcher,

Thank you very much for giving us another opportunity to revise and improve the robustness of our manuscript titled “Reduction in plastic production: Economic loss or environmental gain?” (Ref.: PLC-22-0025.R1). We did our best to respond to all the comments and suggestions provided by the reviewer.

We look forward to hearing from you at your earliest convenience.

Sincerely,

Mateo Cordier

Review: Reducing plastic production: Economic loss or environmental gain? — R2/PR10

Conflict of interest statement

Reviewer declares none.

Comments

Thank-you for allowing me the opportunity to review the authors’ revisions. And many apologies for my tardiness. Between end of year craziness and a family emergency, my review was necessarily on hold for most of the past month.

As before, after another close read, I continue to believe that the work represents an important contribution to the discussion of plastic reduction on a global scale. It should be published. In addition to being important, the authors made a good effort to modify the manuscript to address each of the comments made in my initial review. They should be commended for the additional work which substantially improved the manuscript.

A minor quibble:

One additional comment about the use of input-output models in the calculation of some costs and benefits categories, which I think could be addressed with one or two additional sentences in the discussion. The issue is that input-output models are static, and assume fixed prices and technology. This doesn’t allow for flexibility in the tables which reflect development of substitutes and substitute approaches to meeting the demand for plastics over the coming decades – despite the author’s inclusion of estimated quantities of substitute materials from Lau et al (which was a nice addition). This likely means the transition costs estimated by the authors remain over-estimated. Moreover, since differences from the I-O model were used to calculate benefits, through wages & other flow-through effects, the economic impacts of clean-ups (on the cost side) are likely understated, since they were not passed through the I-O model to reflect these suppliers/wages/etc. Rather than have the authors attempt to modify their calculation (which seems to me to have substantially decreasing marginal utility), however, they should simply acknowledge the limitations of using I-O models for benefit-cost analyses over multi-decadal timelines. For example, these limitations are substantial enough that the US Environmental Protection Agency strongly recommends against their use for calculating social costs or benefits of environmental regulation. (See, for ex., section 8.3.4 of new draft guidelines for preparing economic analyses: https://sab.epa.gov/ords/sab/f?p=100:0:3330963771706:APPLICATION_PROCESS=AGENCY_REVIEW:::AR_ID:2456 or alternatively, earlier guidance from 2010 here: https://www.epa.gov/sites/production/files/2017-09/documents/ee-0568-08.pdf ).

A major concern about presentation of benefits/cost ratios – which should be easy to fix:

I am still concerned with the precision the authors treat the comparisons of costs to benefits in the abstract, Table 2 (particularly the net benefits columns and comparison action/inaction row), the captions for Figures 4 and 5, and the first paragraph of the discussion. Specific ratios (e.g., in the abstract – “This suggests inaction could generate a global cost 1.3 times cheaper than action or up to 1.8 times more expensive.”) – have a high likelihood for being quoted without complete context, and as stated without context, are problematic for ongoing policy discussions (eg., at the global treatyz). Given the massive uncertainties associated with the estimates, major categories of both costs and benefits of plastic missing (e.g., global health, impacts on terrestrial ecosystems, etc.), I do not believe it is appropriate to make such sweeping statements, given the high likelihood of readers cherry-picking statistics. Instead, I recommend the authors more fully acknowledge the preliminary nature of their estimates and limit themselves to a much higher level and general comparison, perhaps akin to a boundary condition, or something more similar to a break-even analysis. For example – limiting statements in the abstract to something like “given the costs and benefits calculated, it is not clear that the global costs of action are substantially higher than the costs of inaction. However, given the incomplete nature of this analysis, it is possible that the costs of inaction are substantially higher.” The majority of the discussion shows the authors understand this limitation, but the same understanding is not evident in the abstract. Such an edit should be rather quick to make. Rather than another round of review being be the rate limiting step for publication, I’d recommend the handling editors accept the paper pending tweaks to language in the locations noted.

Recommendation: Reducing plastic production: Economic loss or environmental gain? — R2/PR11

Comments

No accompanying comment.

Decision: Reducing plastic production: Economic loss or environmental gain? — R2/PR12

Comments

No accompanying comment.

Author comment: Reducing plastic production: Economic loss or environmental gain? — R3/PR13

Comments

Dear professor Fletcher, co-editors and reviewers,

Thank you very much for your work in revising our article and your useful comments . The quality has been improved a lot thanks to your advices. We took all of them into account. You will find the modifications we added to the revised manuscript in our responses to your comments and in the attached files.

Sincerily,

Mateo Cordier

Recommendation: Reducing plastic production: Economic loss or environmental gain? — R3/PR14

Comments

No accompanying comment.

Decision: Reducing plastic production: Economic loss or environmental gain? — R3/PR15

Comments

No accompanying comment.