Tradable permits without legislative targets: a review of the potential for a permit scheme for sterilized clinical waste in the UK.

Abstract

Tradable-permit schemes are becoming an increasingly popular technique for encouraging materials recovery and the diversion of waste from landfill. Such schemes operate using various forms of market-based trading of waste permits between polluters but usually rely on mandatory recycling targets to provide an incentive for trading. Using the UK's Packaging Recovery Note (PRN) scheme as a template, this paper examines the potential for permit trading where mandatory targets are absent and schemes must be driven solely by the financial benefits of reduced landfill costs and permit/material sales. The case examined is sterilized clinical waste, which has considerable recycling potential but suffers from health concerns and a poor public image. Interviews with healthcare and waste-management representatives indicate that although elements of the PRN scheme might prove appropriate for encouraging materials recovery, the absence of government targets and uncertain end markets for sterilized clinical waste present major obstacles to trading. Alternative incentives would therefore be required to catalyse schemes and develop recycling infrastructure. In the final analysis, thermal processing may be a more practical alternative to landfill than materials recovery for this particular waste stream.