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Toxic Economics: the Costs of PVC, and the Alternatives

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Toxic Economics: the Costs of PVC, and the Alternatives The Economics of Phasing Out PVC ______________________________________________ Frank Ackerman Rachel Massey December 2003 Revised May 2006 Global Development and Environment Institute Tufts University 44 Teele Avenue Somerville, MA 02144 www.ase.tufts.edu/gdae The Economics of Phasing out PVC Frank Ackerman and Rachel Massey December 2003; revised May 2006 Note: Portions of the original text presented prices for specific local markets as of mid-2003. Since these are now out of date, and it has not been possible to confirm or update them, they have been removed from this version. All other portions of the text are unchanged from the original. © Global Development and Environment Institute (GDAE), Tufts University Global Development and Environment Institute (GDAE) Tufts University, 44 Teele Avenue, Somerville, MA 02144 Tel. 617-627-3530 http://www.ase.tufts.edu/gdae About the Global Development and Environment Institute The Global Development And Environment Institute is a research institute at Tufts University dedicated to promoting a better understanding of how societies can pursue their economic and community goals in an environmentally and socially sustainable manner. GDAE pursues its mission through original research, policy work, publication projects, curriculum development, conferences, and other activities. GDAE is jointly administered by Tufts University’s Fletcher School of Law and Diplomacy and the Tufts Graduate School of Arts and Sciences. Frank Ackerman is Director of the Research and Policy Program, and Rachel Massey is a Research Associate, at GDAE. Acknowledgements Thanks to Evelyn Bain, Catherine Galligan, Jamie Harvie, Bruce Hampton, and Gail Vittori for reviewing major sections of this report; thanks also to the many other people who have provided specific comments on and information for use in this report. Some, but not all, of these individuals are acknowledged in individual sections of the report. Responsibility for any remaining errors is of course ours. Megan Amundson, Monica Brown, Regina Flores, Courtney Lane, and Jennifer Lappin provided valuable research assistance in the preparation of the report. Funding for this report was provided by the Mitchell Kapor Foundation and the John Merck Fund. No one involved in writing or funding this report has any financial interest in any of the products, materials, or industries discussed here. Table of Contents EXECUTIVE SUMMARY .........................................................................................................................................1 INTRODUCTION .......................................................................................................................................................4 WHY WORRY ABOUT PVC?......................................................................................................................................4 VINYL TODAY: A LOOK AT THE MARKET..................................................................................................................5 COSTS OF REPLACING PVC: THREE STUDIES ............................................................................................................6 FACTORS FAVORING PHASEOUT.......................................................................................................................9 LIFE-CYCLE COSTS OFTEN FAVOR ALTERNATIVES...................................................................................................9 MASS PRODUCTION REDUCES COSTS ........................................................................................................................9 PVC PRODUCTS CAN BE DANGEROUS TO USERS ....................................................................................................11 ENVIRONMENTAL PROTECTION COSTS LESS THAN ANTICIPATED...........................................................................12 MARKETS FOR ALTERNATIVES .......................................................................................................................13 ALTERNATIVES TO PVC, I: PIPES ............................................................................................................................13 ALTERNATIVES TO PVC, II: ROOFING .....................................................................................................................17 ALTERNATIVES TO PVC, III: FLOORING .................................................................................................................20 ALTERNATIVES TO PVC, IV: MEDICAL SUPPLIES AND GLOVES ..............................................................................22 ALTERNATIVES TO PVC, V: SIDING AND WINDOWS................................................................................................27 EMPLOYMENT IMPACTS OF A PVC PHASEOUT..........................................................................................30 SIZE OF THE INDUSTRY ............................................................................................................................................30 EFFECTS ON PVC WORKERS ...................................................................................................................................32 STEPS TOWARD ALTERNATIVES .....................................................................................................................34 POLICY INITIATIVES TO PHASE OUT PVC ...............................................................................................................34 INNOVATIVE CONSTRUCTION PROJECTS..................................................................................................................37 CONCLUSION ..........................................................................................................................................................39 ENDNOTES ...............................................................................................................................................................40 Tables and Figures TABLES TABLE 1: PVC CONSUMPTION IN US AND CANADA, 1994-2007…………………………………………………... 5 TABLE 2: AVERAGE COST OF REPLACING PVC (THREE PUBLISHED ESTIMATES)………………………………….. 6 TABLE 3: ALTERNATIVES TO PVC IN PIPES AND CONSTRUCTION………………………………………………….. 7 TABLE 4: MARKETS FOR POLYETHYLENE PIPE……………………………………………………………………... 14 TABLE 5: INSTALLATION COSTS, 3/4-INCH PLUMBING—PIPE ONLY………………………………………….......... 16 TABLE 6: INSTALLATION COSTS, 3/4-INCH PLUMBING—COMPLETE INSTALLATION…………………………….… 16 TABLE 7: LOW-SLOPE ROOFING SALES, 2002…..………………………………………………………………….. 17 TABLE 8: LIFE-CYCLE COSTS OF STRATICA VS. VINYL…………………………………………………………… 21 TABLE 9: AVERAGE FAILURE RATES OF VINYL, NITRILE, AND LATEX GLOVES………………………………….. 24 TABLE 10: DURABILITY AND GLOVE PRICES……………………………………………………………………….. 25 TABLE 11: SIDING MATERIAL COSTS AND LIFETIMES……………………………………………………………… 28 TABLE 12: INDUSTRY ESTIMATES OF CHLORINE-RELATED AND PVC FABRICATOR EMPLOYMENT……………….. 31 TABLE 13: VCM PRODUCTION FACILITIES, 2000…………………………………………………………………... 31 TABLE 14: PVC PRODUCTION FACILITIES, 2003…………………………………………………………………… 32 FIGURES FIGURE 1: USES OF PVC, 2002……………………………………………………………………………………... 6 FIGURE 2: AVERAGE LIFETIMES OF ROOFS…………………………………………………………………………. 18 1 The Economics of Phasing Out PVC Executive Summary Polyvinyl chloride, also known as PVC or “vinyl,” Factors favoring phaseout has become one of the most widely used plastics today. We encounter PVC on a daily basis in Figures such as those from Environment Canada, products ranging from toys, packaging, and lawn based on current market prices alone, overstate the furniture to water and sewer pipes, medical economic benefits of PVC. We explore four major equipment, and building materials. economic reasons why this is the case. PVC poses hazards to human health over the course • Life-cycle costs often favor alternatives. Some of its life cycle. PVC production exposes workers and of the alternatives have higher initial purchase prices communities to vinyl chloride and other toxic than PVC products, but are actually less expensive substances. PVC products such as medical equipment over the useful life of the product. Commercial and children’s toys can leach toxic additives during flooring provides an example: among the flooring their useful life. Vinyl building materials release options we examined, vinyl has the lowest installed hydrochloric acid fumes if they catch fire, and cost; but due to its shorter lifetime and higher burning PVC creates byproducts including dioxin, a maintenance requirements, it may have the highest potent carcinogen. life-cycle cost. In such cases, rather than making a decision based on initial costs alone, purchasers can The health hazards associated with the production, save money by comparing the full costs over the use, and disposal of PVC are, for the most part, product life cycle of buying, installing, using, avoidable. Alternatives are available across the range maintaining, and ultimately disposing of alternative of PVC products. In some cases the alternatives are products. no more expensive than PVC; in other cases there is a small additional cost. Often there are good reasons to • Mass production reduces costs. Most products expect the costs of alternatives to decline over time. are cheaper when they are produced in large quantities; costs typically drop as production volumes Vinyl today: a look at the market increase. Currently the advantages of mass production favor PVC: many PVC products have PVC sales reached 14.4 billion pounds in the US and
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