Circular Systems Boost Minnesota's Economic Conditions

A new report titled, 'Measuring Statewide Impacts of Reuse' shows the economic impact of reuse systems in the state of Minnesota.

The document redefined the methodologies of previous studies by Reuse Minnesota and the Minnesota Pollution Control Agency to improve data accuracy. The findings help the organizations with the generation of a user-friendly tool to replicate future studies.

“This study demonstrates the profound impact reuse has on the local Minnesota economy and environment," noted Emily Barker, executive director of Reuse Minnesota, in a statement. "It’s not a choice between economic growth or improving our environment, we can do both and the findings really reinforce that belief. We intend to repeat the study using the same model every five years and hope to continue to show progress towards cutting carbon emissions while creating good green jobs for Minnesotans.”

Reuse Minnesota and Legislative-Citizen Commission on Minnesota Resources partnered with Eunomia to conduct the research. While previous studies relied on the Carnegie Mellon Economic Input-Output Life Cycle Assessment, the most recent report utilized the United States Environmentally-Extended Input-Output model.

"This model has been more recently updated (Carnegie Mellon is no longer updated), is free of charge, provides a clear methodology, and the matrices can be downloaded into Microsoft Excel," the report stated. "All these aspects were determined to support the switch for making the change, though it was acknowledged it may make comparison with past results somewhat difficult."

The results demonstrated that grassroots efforts around reuse provide the most economic benefit with an estimated revenue potential of between $3.1 billion and $4.7 billion annually with an additional $2.4 billion social value in wages, taxes and shareholder benefits.

The impact of a circular or reuse economy to Minnesota's workforce is significant, generating between 36,000 and 54,000 jobs per year. 

"Reuse jobs are usually not outsourced because they handle existing products within a given region," the findings indicated. "Therefore, reuse jobs are inherently local and provide a direct benefit to the Minnesota state economy."

Previous studies indicate Minnesota's recycling rate for packaging is the highest of any U.S. state without a Deposit Return System, according to the organizations. 

Sarah Edwards, Eunomia director of North America, commented that the findings allow for more informed policy discussions around circular systems and reuse.

“Reusing materials and extending their life cycle to delay or prevent the production of new products allows us to live more sustainably within a circular system," she said. "The current prevailing take-make-waste economic principles are both inefficient and insufficient in limiting climate change. The model we developed for this study will be a much more accurate reflection of the benefits the reuse economy has on Minnesota compared to previous studies.”