Examining the Economics of Scrap Tire Management

During the 1998 state legislative session, the House of Representatives passed a resolution directing P²AD and EPD to conduct an assessment of alternative policies and programs for the management of scrap tires, including the need for economic incentives for reusing or recycling tires. It was also the desire of P²AD and EPD to develop a good understanding of current scrap tire recycling market conditions and the opportunities that exist for enhancing market conditions and overcoming identified market barriers.

As a result, P²AD contracted with Georgia State University to conduct an economic study of alternatives for the management of scrap tires in Georgia. This study, led by Ronald G. Cummings, Professor of Economics and Noah Langdale Jr. Eminent Scholar Chair in Environmental Policy, will evaluate the economic and environmental sustainability of current scrap tire management practices and the need for state policies and/or programs to assure the long term viability of scrap tire reuse and recycling practices. This study will include:

1. an evaluation of current scrap tire management practices;

2. a determination of current scrap tire management costs;

3. identification and assessment of potential policy and program options for enhancing the market for scrap tire materials; and

4. suggestions on the parameters to be used to monitor the ongoing effectiveness of policies and programs implemented by the State.

Through this work, P²AD and EPD hope to develop an understanding of how the current scrap tire management fee has influenced management practices and to define how future state policy could influence future management practices. The study will also address whether increasing the demand for scrap tires as a raw material and the demand for products manufactured from scrap tires could permanently reduce the cost of scrap tire management.

As part of their work, the Georgia State research team is interviewing scrap tire processors and end users. Input is also being sought from other interested parties, including tire dealers and solid waste managers from around the state. It is anticipated that a meeting will be held in September to brief interested parties on the initial research efforts. At that time, interested parties will also be asked to comment on identified barriers and impediments to expanding the markets for scrap tire materials. Individuals interested in being notified about this briefing should contact Mark Davis at (404) 362-2537.