The Real Cost Of Plastic: Who Pays The Price?

Plastic is a material that is seemingly inexpensive, with a cost of around €1/kg, but it has hidden costs that extend far beyond its production value. The price of plastic can vary, with Grade B film costing 7.94 cents and Grade C film costing 0.5 cents per pound. However, the real cost of plastic is not just financial. It has significant health, environmental, and economic impacts, posing a serious threat to public health and ecosystems.

The cost of scrap plastic

The cost of plastic is often thought of as being low, at around €1/kg. However, this price does not take into account the hidden costs of plastic, which include environmental, health and economic impacts. For example, Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health and cost the U.S. an estimated $250 billion in increased health care costs in 2018.

Scrap plastic prices vary depending on the grade of the plastic. For example, Grade B film is currently 7.94 cents per pound, compared to 6.94 cents last month. Grade C film is currently 0.5 cents per pound. Polypropylene (PP) is currently trading at 8.13 cents per pound, compared to 5.38 cents last month. The national average price of Grade A film is now 16.94 cents per pound, compared with 15.63 cents last month. PET, natural HDPE, color HDPE and PP have increased by 6%, 10%, 45% and 51% respectively over the past month. The national average price of post-consumer PET beverage bottles and jars is currently 13.94 cents per pound, compared with 13.16 cents per pound last month.

The cost of plastic to the environment

Plastic is a cheap material, costing around €1/kg. However, the environmental cost of plastic is far higher.

A report by Dalberg, commissioned by WWF, found that the lifetime cost to society, the environment and the economy of plastic produced in 2019 was US$3.7 trillion. This is more than the GDP of India. The report also found that plastic is responsible for generating 1.8 billion tonnes of greenhouse gas emissions a year, more than the annual emissions from aviation and shipping combined. These emissions are accelerating the surge of climate-change-related negative impacts such as shrinking glaciers, flooding, and crop death from more intense droughts, imposing huge costs on governments and society.

The environmental damage to marine ecosystems is estimated to equate to some $13bn per year. Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health and cost the U.S. an estimated $250 billion in increased health care costs in 2018.

The true cost of plastic is hidden. While the production cost is low, the environmental, health, and economic impacts are far-reaching. Plastic waste that is not properly managed ends up in the environment, where it continues to have climate impacts as it degrades. A study found that plastic at the ocean's surface continually releases methane and other greenhouse gases, and that these emissions increase as plastic breaks down further.

The cost of plastic to public health

Plastic is a seemingly inexpensive material, costing around €1/kg. However, the true cost of plastic to public health is far greater. Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health, with hazardous chemicals leaching and contaminating humans and the environment. These chemicals disturb the body's hormone systems and can cause cancer, diabetes, reproductive disorders, neurological impairments of developing foetuses and children, and death.

The cost of plastic-related exposures to public health is significant. In 2018, the US government spent an estimated $249-250 billion on health care costs related to plastic chemicals, with the economic toll including direct medical costs and broader societal impacts such as reduced productivity due to health issues. This figure is likely to be even higher when considering the global impact of plastic on public health.

The price of plastic varies depending on its grade, with Grade B film costing 7.94 cents per pound and Grade C film costing a low 0.5 cents per pound. Polypropylene (PP) is trading at 8.13 cents per pound, while Grade A film is now 16.94 cents per pound. Despite these low prices, the hidden costs of plastic are far greater, with environmental and health impacts that don't show up in the production cost.

The high cost of plastic to public health has led to discussions about potential interventions to reduce EDC exposure and protect public health as part of a Global Plastics Treaty. Reducing plastic use and improving recycling methods are crucial steps to mitigate the health risks associated with plastic.

The cost of plastic to the economy

Plastic is responsible for generating 1.8 billion tonnes of greenhouse gas emissions (GHG) a year, which is more than the annual emissions from aviation and shipping combined. The cost to the economy of the plastic produced in 2019 alone was US$3.7 trillion, more than the GDP of India. This cost is set to double for the plastic produced in 2040.

The true cost of plastic on the economy, environment and health can be as much as 10 times higher for low-income countries, even though they consume almost three times less plastic per capita than high-income countries. The total lifetime costs of a kilogram of plastic are around $150 in low- and middle-income countries, which is eight times the $19/kilogram incurred by high-income countries. When comparing just low-income countries and their wealthier counterparts, the cost differential rises to 10 times, with low-income countries hit with costs of $200 a kilogram.

Marginalised communities disproportionately bear the cost of the plastic lifecycle. Incineration plants and oil and gas refineries are built predominantly in low-income and marginalised communities, exposing them to health and economic risks. Informal waste pickers are also exposed to significant health risks throughout the plastic waste processing cycle.

The economic fallout of plastic waste management is palpable across the globe. For instance, Canada’s plastic waste management system epitomises a lost economic opportunity, with 86% of plastic waste funnelled into landfills, translating to a loss nearing $8 billion, anticipated to escalate to over $11 billion by 2030. In the US, the net cost burden of operating plastic waste management is estimated at 660 million USD annually, mainly stemming from collection and sorting activities. Marine plastic pollution alone is responsible for a staggering annual loss of up to $2.5 trillion.

The cost of plastic packaging

Recent research published in the Journal of the Endocrine Society has revealed that endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health. These chemicals have resulted in increased healthcare costs for countries worldwide, with the US alone incurring an estimated $250 billion in additional healthcare expenses in 2018 due to EDCs.

The environmental impact of plastic packaging is also significant. Plastic pollution contributes to the degradation of ecosystems and natural resources, leading to long-term economic consequences. Additionally, the production and disposal of plastic packaging generate greenhouse gas emissions, contributing to climate change.

The price of plastic varies depending on its grade and form. For example, Grade A film, a high-grade plastic, has an average price of 16.94 cents per pound, while Grade C film, a lower-grade plastic, is significantly cheaper at 0.5 cents per pound. Polypropylene (PP), another type of plastic, has seen dramatic price swings, trading at 8.13 cents per pound, a 51% increase from the previous month. These price variations reflect the dynamic nature of the plastic market and the influence of supply and demand on plastic prices.

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