This study develops economic impact models of solid waste system in California and determines
statewide and regional economic impacts of waste disposal and diversion. The study estimates
that the 1999 economic impacts of waste disposal and diversion were approximately $9 billion in
output, $21 billion in output impacts, $8 billion in total income impacts, $11 billion in valueadded
impacts, and 179,000 additional jobs. The study also finds that if all waste generation
were disposed instead of being diverted at the 1999 rates, the statewide economic impacts would
be 17 to 20 percent lower. While the relative impacts for individual regions vary because of
differences in material flows and business and industrial infrastructures, generally, diversion in
California generates larger economic impacts than disposal. Average output and value-added
impacts more than double when materials are diverted rather than disposed statewide, and output
impacts, total income impacts, and job impacts also nearly double. Differences in regional
impact suggest that creating markets to accept more recyclable and greenwaste materials is the
key to stimulating more economic activities and higher economic impacts in the state