Evolution of financial sustainability of Canadian waste management industries in government and private sectors

Abstract

There is a lack of government and private sector-specific analysis on the economic sustainability of waste management services in Canada. This study addresses that gap by conducting a comprehensive 23-year analysis of waste management industry data across four Western Canadian provinces, examining both sectors separately. This distinction enhances understanding of how economic and employment factors uniquely influence waste disposal, diversion, and revenue growth. The study reveals a predominantly private sector led management system, with the highest national revenue in 2018 ($221.9/cap). The private sector's substantial investment in waste diversion significantly impacts its robust revenue growth and consistently higher profit margins. In contrast, the government sector exhibits fluctuating operating revenue, primarily supported by income and property taxes, reflecting an inconsistent financial structure. Lower waste diversion rates in some provinces may be linked to higher proportion of part-time employees in the government sector, impacting financial sustainability. However, recent upward trends in government capital investment suggest a shift toward long-term development goals rather than short-term revenue gains. Findings highlights distinct differences in business and employment characteristics between sectors. The study provides an analytical framework for optimized financial and resource planning within Canada's waste management landscape.