Each year, millions of tons of hazardous waste are generated in the United States through ordinary economic activity. The three most waste-intensive sectors – chemicals, petroleum and coal products, and metals – generate over 75 thousand tons per day while contributing nearly $1 trillion to US GDP and supporting 2.7 million jobs.
Improper management of hazardous waste can contaminate soil and drinking water, release toxic air pollutants, and create serious health risks for exposed communities. Yet it is difficult to imagine a modern economy functioning without the industries that generate this waste.
CRA Competition’s Alan Jaske was retained by Veolia, a global leader in environmental services, to analyze the role of hazardous waste management as an input to industrial activity and economic growth. Drawing on detailed, facility-level data from the US Environmental Protection Agency, Dr. Jaske examines the ubiquitous nature of hazardous waste generation across the US economy and quantifies what is at stake if treatment and disposal capacity fails to keep pace.
Key findings include:
- Manufacturing accounts for 90 percent of hazardous waste generated nationally, with generation concentrated in chemicals, refining, metals, and semiconductors. Texas alone accounts for 53% of the national total.
- As economic output expands, so does the need for hazardous waste management. Generation is projected to reach 37.4 million tons annually by 2033, roughly 5 million tons above current levels. Domestic policy encouraging the reshoring of pharmaceuticals, semiconductors, batteries, and steel will likely contribute to this increase.
- For many industrial processes, persistent constraints on hazardous waste management capacity can limit growth. A one percent shortfall in management capacity reduces 2033 projected real US gross output by $27.5 billion, rising to $82.4 billion under a three percent shortfall.
Drawing on lessons from the 2020–2024 hazardous waste incineration backlog, Dr. Jaske examines the factors most likely to shape treatment and disposal capacity in the years ahead. These include closures of on-site and captive facilities, unplanned maintenance and facility outages, disaster relief and large-scale remediation, and regulatory complexity. The report considers the conditions under which each factor could affect available capacity.
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