The Eco-Capitalist Guidebook:

Chapter 6: So what's the point?

So what will happen as TerraCycle needs more and more waste for our manufacturing process? What will happen if other companies need similar waste for their manufacturing process? The demand for that waste stream would increase.

That paper sludge for example. Paper sludge is the short fibers that occur in paper production that cannot be recycled since they are too short and landfills have a hard time disposing them because they can get caught in the wind and create a mess for the landfill operators. Therefore, today, paper sludge is an expensive waste stream to dispose.

In 2007, TerraCycle will be launching a line of potting mixes that will use paper sludge as one of the four raw materials. We have agreed with the waste haulers that we would take the paper sludge for less cost to them than if they took it to a landfill.

What if our line of potting mixes becomes the most popular potting mix in North America? (Starting in the Spring of 2007, please buy a gallon so that you could help us achieve this goal). If that occurred we would be creating more demand for the material. Now, what if other manufacturing companies also started using paper sludge in their product? More and more demand would be created. As you can see in the graph below, as demand for the raw material increases so does the price. In the case of a waste material, which starts with a negative price, the price would go from say negative $50 per ton to negative $40 per ton. As the demand continues to increase the price would go to negative $30, negative $20, negative $10 and finally hit the magical number $0. At this point the raw material would no longer be considered waste. Therefore, by creating demand for a waste stream you could completely eliminate the idea that that waste stream is considered waste.

In other words, through eco-capitalism, you can be doing the right thing from a profit perspective, and in the process eliminate the idea of waste!

Disclaimer: These thoughts are pure musings on the potential of eco-capitalism in manufacturing. We must make generalizations to grasp macro thoughts. In other words, welcome to the rabbit hole.