A cost-benefit analysis of the downstream impacts of e-waste recycling in Pakistan

Abstract

This paper presents downstream cost-benefit analysis for electronic waste (e-waste) recycling workers in Pakistan, a country that both generates large quantities of e-waste domestically and imports a significant amount from developed countries. Financial cost-benefit elements – reduction in productive capacity, lost wages, medical expenses, wages (and meals) and non-financial cost-benefit elements – opportunity cost, cost of illiteracy and value of life have been quantified. Primary data collected on site was analyzed using quantitative and qualitative methods. The estimated total net economic cost to recycling workers is between Rs.34,069 and Rs.85,478 (US$ 203–51011PKR to US$ conversion rate of 167.686 was used as of 1 July 2020.) per month or an average of Rs.50,363 (US$ 300) per worker. This main finding suggests that cost exceeds by 2.6–4.7 times the estimated economic benefits derived by these workers. Related qualitative data suggests government and owners of recycling businesses are largely blind to many of the less visible costs of this industry, while recycling workers and their families appear trapped in a vicious cycle of poverty. Understanding that what can be measured can be managed and improved, a systematic assessment of informal recycling based on identified impact factors may help mitigate and ideally also motivate a shift towards formal processing that would reduce the downstream negative impacts, both visible and hidden.