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Waste Manage Res 2007: 25: 288–295 Copyright © ISWA 2007

Printed in UK – all right reserved


Waste Management & Research
ISSN 0734–242X

Report: Integrated industrial waste management


systems in China

Various models of urban sustainable development have been Wenxin Zhang


introduced in recent years and some of these such as inte- Department of Civic Design, University of Liverpool, 74 Bedford
Street South, Liverpool, L69 7ZQ, UK
grated waste management have been proved to be of particular
value. Integrated industrial waste management systems include
Peter Roberts
all the administrative, financial, legal, planning and engineer- Professor of Sustainable and Spatial Development, Sustainability
ing functions involved in solutions to the problems of indus- Research Institute, School of Earth and Environment. University
trial waste. Even though the pace of the improvement made to of Leeds, Leeds, UK
China’s industrial waste management capacity is impressive,
Keywords: Integrated approach, industrial waste management
China has been unable to keep up with the increasing demand system, case study, key issues, China, wmr 1152–1
for waste management. This paper will evaluate the applica-
tion of integrated industrial waste management systems in Corresponding author: Wenxin Zhang, Department of Civic
promoting urban sustainable development in the context of Design, University of Liverpool, 74 Bedford Street South,
Liverpool, L69 7ZQ, UK.
three case study cities in China (positive case, average case Tel: +44 151 794 3453; fax: +44 151 794 3125;
and negative case) by identifying and accessing the factors email: w.zhang1@liv.ac.uk
that affect the success or failure of integrated industrial waste
management systems. DOI: 10.1177/0734242X07079185

Received 31 January 2007; accepted in revised form 17 March 2007

Figures 2–3 appear in colour online: http://wmr.sagepub.com

Introduction
In recent years a general consensus has emerged which sug- Management (ISWM)] have been proposed with the aim of
gests that the most effective waste management decisions assessing existing waste management systems and planning
can be achieved through adopting an integrated approach more effective future waste management approaches (Tchob-
(US EPA 1995, Palmares 2000, Scheinberg 2001). It has also anoglous et al. 1993, Klundert & Anshutz 2001, Canada
been argued that sustainable waste management practices Department of Environment 2002).
can only be improved by adopting an integrated approach However, many current applications of integrated waste
(Audit Commission 1997 p. 11, Klundert & Anshutz 2001). management system models are concerned with municipal
Due to the concentration of activities and pollution in urban waste, which is defined to include refuse from households and
areas, it is evident that an important level of integrated non-hazardous solid waste from industrial, commercial and
waste management is required on the city scale. For this rea- other non-residential activities. The complex content of the
son, the implementation of integrated waste management waste that is processed necessarily leads to difficulties for the
within cities has been widely explored through case studies development of integrated sustainable waste management.
(Coffey 1996, Palmeres 2000, Su and Wang 2003). Conse- Therefore, the present research focused on industrial waste
quently, a number of conceptual models [such as Integrated management instead of all municipal waste. In considering
Waste Management (IWM), Integrated Sustainable Waste industrial waste management in a specific spatial area, it is

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Integrated industrial waste management systems in China

Table 1: Study of industrial waste management issues

Issues Financial Local waste Economic Education and


Employment Partnerships
Authors support strategy instruments training

Coffey (1996) 1 1 1
Iyer (2000) 1 1 1
Klundert & Ansuhutz (2001) 1 1 1 1
Scheinberg (2001) 1 1 1
He & Shao (2004) 1 1 1 1 1
World Bank (2003) 1 1 1
Financial support refers to budget and cost accounting within the industrial waste management system and in relation to the local economy.
Local waste strategy focuses on the institutional structure which informs and implements waste management at local level.
Economic instruments in terms of the waste management literature are generally understood to include policies, tools and actions which have the
intention and purpose of influence of the behaviour of economic agents by adjusting financial incentives in order to improve the cost-effectiveness
of waste management efforts (Marulanda & Jarque, 2003).
Employment on industrial waste management task includes not only the officials who work in authorities, but also professional waste manage-
ment staff who work in industrial enterprises, waste industry companies and waste service sectors.
Partnerships represent the relationships between individuals or organizations in which the parties have developed close cooperation and share
specified rights and responsibilities.
Education and training provision which is designed to meet the need of different audiences.

appropriate to consider how the function of an integrated 4. Research institutions that work on waste technology
industrial waste management system depends on its ability to innovation and the improvement of waste manage-
adopt particular characteristics of the political, social, eco- ment tools.
nomic and environmental context of an individual city. • Key issues in the local context that should be taken into
By investigating integrated waste management systems, account when assessing an industrial waste management
the importance of identifying key participants and key issues system.
can be seen to be crucial to facilitating the objective of devel- The key issues of industrial waste management system
oping a fully integrated system (Tchobanoglous et al. 1993, have been researched by various people over the last 10
Schubeler 1996, Scheinberg 2001). According to these authors, years and offer global experience. There are several issues
a multi-disciplinary framework which involves the main dimen- that were most commonly quoted and these are presented
sions is perhaps the best way to address the integrated approach. in Table 1.
Thus, for the analytical framework required the integrated
industrial waste management system can be explained from
the two main dimensions.
Economic and industrial waste management
features in China
• Key actors involved in industrial waste management. China recently became the largest producer of solid waste in
A key actor is a person or organization that has responsi- the world. In 2004 the urban areas of China generated about
bility or interest in industrial waste management. Industrial 190 000 tonnes of waste and by 2030 this amount is projected
waste management laws and regulations that apply to the to be at least 480 000 tonnes (World Bank 2005, p. 1). Signif-
whole country are made by national government. Local icant improvements have been made over the last 10 years.
authorities are responsible for the management and super- Even though the pace of China’s industrial waste manage-
vision of all waste management activities (Hogland & ment improvement is significant, the country has been una-
Stenis 2000). Meanwhile, many people and organizations ble to keep up with the increasing demand for waste service
outside the official authorities are also involved in indus- coverage, environmental requirements for safe management
trial waste management (US EPA 1995, He & Shao 2004, systems, and the generation of greater cost-effectiveness in
World Bank 2005), including the following organizations. service delivery (He & Shao 2004, World Bank 2005).There-
1. Industrial companies who are the producers of indus- fore, more effective management models need to be
trial waste. explored and applied to achieve sustainable industrial waste
2. The waste industry, which processes waste generated by management.
industrial companies. In addition to the difference in economic performance,
3. Public administrators who can promote an industrial there is an obvious gap in relation to industrial waste man-
waste management system by supervising the industrial agement performance between the eastern, western and cen-
waste management outcome. tral parts of China (Statistical Environment Press 2004). To

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W. Zhang, P. Roberts

Fig. 1: Three economic regions of China.

find ways to achieve better integrated industrial waste man- cities, case studies were carried out in cities that are at differ-
agement, key features of the integrated industrial waste man- ent levels of industrial waste management, which can be
agement systems of different cities need to be explored and characterized as top, bottom and average levels. The cities in
compared. Therefore a case study approach was chosen as western China seem to be far behind the cities in eastern
the method to apply an analytical framework of the indus- China in terms of industrial waste collection, transport, treat-
trial waste management system to Chinese cities. ment and waste production reduction, whereas many cities in
the central part of China perform at an average level. Figure 2
provides some quantitative analysis result to indicate the dif-
Case studies approach ference. Beijing and a few typical cities in each area (Qingdao
In order to evaluate the differences in the way industrial waste is in eastern China, Zhengzhou and Yueyang are in Central
management options have been adopted in various Chinese China, Lanzhou is in Western China) were chosen to com-

Fig. 2: Industrial waste management status in different cities across China. (Source: Environmental Protection Year Book of China, 2003).

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Integrated industrial waste management systems in China

pare the destination of industrial waste. Over 80% of indus- • Interviews were used to collect information from appro-
trial waste in Qingdao was reused and recycled, whereas over priate representatives of key survey groups (key partici-
80% of industrial waste was stored and discharged in pants in the integrated industrial waste management sys-
Lanzhou. A city that has a comparatively high waste reuse tem).
and recycling rate and a low amount of waste stored and dis- • Detailed structured questionnaires were sent to samples
charged is regarded as having a higher level of industrial waste of industrial companies and the general public. The large
management (Diaz & Warith 2006). number of industrial companies and public was a major
The selection of cities for the case study was based on the reason for adopting a questionnaire survey as it was only
levels of industrial waste management performance but fol- possible to interview a very limited number of representa-
lowed the principles of literal replication. Therefore, there tives from industrial companies and the public.
must be some similarities within the background of the case • When the data collection was completed, analysis of the
study cities to enable the comparisons to be carried out and data and information was conducted to identify the differ-
furthermore, similar levels of information are required for the ences between the integrated industrial waste manage-
cities selected. The criteria can be summarized as: ment systems of the cities and to explore the reasons for
those differences.
• case study cities should be typical industrial cities; and
• case study cities should have similar industrial sectors. From April, 2005 to December, 2005, three cases studies were
conducted separately in Qingdao, Zhengzhou and Lanzhou
On the basis of these criteria, the cities selected were Qingdao, to explore the reasons for the different performance of inte-
Zhengzhou and Lanzhou as positive, average and negative grated industrial waste management systems in the three cit-
cities in terms of their development of integrated waste man- ies. The results of the analyses are described according to the
agement. six aspects identified in Table 1, to reflect the key issues asso-
The case studies sought to find practical explanations for ciated with integrated industrial waste management systems
the variable progress of the contribution made by integrated and their operation.
industrial waste management systems to urban sustainable
development. According to the analytical framework of the
integrated industrial waste management system discussed above,
Waste management finance in the cities
there are three types of data that need to be collected. Finance is widely considered to be important in determining
the feasibility and success of integrated industrial waste man-
• General information about the industrial waste manage- agement. More than 90% of interviewees from local authori-
ment activities in the case study cities. The general infor- ties and 75% of respondents from industrial companies rec-
mation may include economic and industrial status, urban ognized financial support as one of the most important issues
sustainable development assessment data, industrial waste for an integrated industrial waste management system.
generation data, destination use of waste, economic Various visits to Qingdao, Zhengzhou and Lanzhou, plus
expenditure on waste management, waste tax amount, etc. background data provided insights into the complex situa-
• Information about how the six key issues work in each tion of financial support for waste management in the differ-
case study city, identification of the importance and inter- ent cities. Reviewing the financing aspects of waste manage-
relationships between them. ment in the case study cities was further complicated because
• Attitude of key participants in the integrated industrial operating costs (collection and disposal facilities) and capital
waste management system and the key issues of the system. costs (mainly for disposal facilities such as landfill and incin-
erators) were not always funded by the same government
Both quantitative and qualitative methods were applied to level.
the case studies in each city. Quantitative methods were During recent years, China’s national and local govern-
mainly used to collect and analyse secondary data from offi- ments have encouraged investment in solid waste manage-
cial agencies, websites, data archives and the public. These ment from the local private sector and foreign companies.
data provided a general indication of the objectivity, and Chinese authorities intend to promote commercial opera-
more importantly, helped to direct further qualitative tions within the waste management sector in order to aug-
research and analysis. ment current government funding. Local government has
Detailed structured questionnaires, semi-structured inter- been responsible for making many efforts to improve the
views, and content analysis were the main quantitative local conditions for commercial investment in waste man-
methods used to obtain the data required. agement. Increasingly national government funding for capi-

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W. Zhang, P. Roberts

With regard to the experience of good industrial waste


management systems, current local waste management strat-
egies in some Chinese cities are trying to propose ways to
encourage a local ‘waste management ethic’. Such intentions
include attempts to motivate industrial companies to apply
cleaner production, and support waste reduction efforts. The
strategy should also have sufficient redundancy in case one
component part of the waste management system is out of oper-
ation, such as, an incinerator is closed for maintenance or spe-
cific recycling facilities are emergently unavailable. The strategy
Fig. 3: Sources of industrial waste management finance in Qingdao.
should also be able to accommodate sudden waste fluctuations
that may arise following events such as storms or healthcare
issues (Qingdao Waste Management Strategy 2004).
tal requirements is shifting to the cities, especially the larger As a contrast, during the 1980s and 1990s, the majority of
and more developed ones. As a developed city, Qingdao has municipal officers in Lanzhou did not consider integrated
a large industrial and commercial base to support revenue industrial waste management to be a priority. As pointed out
generation for waste management service, and it is more by Mrs. Shuxia Li (Vice director, Lanzhou EPB): ‘Local EPB
capable of attracting private sector investment in waste man- staff are the key actors for promoting integrated industrial
agement facilities. waste management, however at the same time, there is a
The sources of investment in industrial waste management widespread phenomena of lack of resource and unable to pro-
are of many forms and vary from city to city. From 1994 to 2004, vide adequate management on industrial waste’. In the case
the total amount of financial support on industrial waste man- of Lanzhou, planning for industrial waste management improve-
agement in Qingdao increased (Figure 3). During year 2004, ment was largely ignored by local authorities.
the amount of total industrial waste management investment
in Qingdao is about four times more than the amount in
Lanzhou and three times the amount in Zhengzhou.
Economic instruments
From the information collected, it is reasonable to say More than 90 possible economic instruments have been
that far more attention needs to be given to financing meth- identified as suitable for use in the waste management sector
ods for solid waste management, particularly in the smaller and each of them involves a number of activities (World
and lagging cities such as Lanzhou, as this is now one of the Bank 2003), choosing the correct instrument is not a simple
fastest growing budget items for local governments. The matter. Institutional capacities and the willingness of local
growing industrial waste management budgets are further com- governments to introduce these instruments play very impor-
plicated by rapidly growing costs for the management of spe- tant roles in designing appropriate economic actions and
cial wastes, such as hazardous waste, medical waste, and these factors also influence the results of the application of
wastewater treatment sludge. It is likely that local governments the economic instruments. The chief economic instruments
will increasingly call upon provincial and national govern- in terms of industrial waste management in the case study
ment to provide financial assistance in order to deal with cities can be divided into four types: (1) waste fees and taxes,
these problematic wastes. and waste tradeable permits; (2) a pollution fee-refund sys-
tem; (3) investment support and eco-labels; and (4) the
establishment of a recycled and reused product market.
Local waste management strategy Officials from the Lanzhou and Zhengzhou authorities
The main objective of a good local waste management strat- stated that ‘theoretically, economic instruments can improve
egy is to develop an industrial waste management system industrial waste management, but they normally impose high
which maximizes the benefits of each component. This can administration standards and do not represent a ‘quick fix’ to
be achieved by minimizing costs and maximizing environ- the problems associated with more traditional command-and-
mental protection in order to promote public acceptance. control approaches’ (personal interview with Mr Lv, Director
Such approaches must be flexible in order to respond to of Pollution Control Division, Lanzhou EPB on 9 May 2005
changing circumstances. A few large cities in China, such as and Mr Zheng, Vice-Director of Zhengzhou EPB on 5 Decem-
Qingdao, have employed a specific organization to design a ber 2005). In addition, information building and information
local waste management plan as well as a separate local waste sharing are identified as key factors that guarantee the suc-
management strategy. cess or effectiveness of the use of economic instruments

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(Huber et al. 1997). However, waste information systems in divisions of the local EPBs are in charge of industrial waste
most Chinese cities are still at a very early stage. management in cities that do not have a separate waste man-
Faced with a number of challenges, a small number of cit- agement centre, such as Zhengzhou and Lanzhou. The num-
ies in China have made rapid progress in the application of bers of employees in the divisions of pollution control vary
economic instruments for waste management. Eco-labels are due to the capacities of each EPB.
widely used in eastern cities such as Qingdao. In addition, As a result of lack of waste monitoring and supervision
establishing policy-motivated economic instruments is a staff, daily inspections of industrial companies can not be fully
widely used tool to manage the recycled and reused product conducted. According to regulatory requirements, all compa-
market. These policy-motivated economic instruments nor- nies that produce waste are required to submit their waste
mally aim to encourage the purchase of reused and recycled production and management data to the local EPB. However,
products that do not have price advantages. For example, only about 40% of industrial companies in Lanzhou submit
Qingdao has established local policies that regulate the use their data on time every year; and the corresponding figures
of fuel made from coal dust and the use of slag in construc- for Zhengzhou and Qingdao were 56 and 88% of companies
tion activities. This kind of policy helped to improve the in 2004.
need of recycled materials and has helped to set up markets With regard to the waste industry and the waste service
for recycled and reused products. sector in the case study cities, there is a considerable demand
In general, there is no ideal way to address the issue of for more staff with professional training. The lack of suffi-
implementing economic instruments for industrial waste cient staff has resulted in a situation in which some current
management, especially for China, which has such a vast ter- waste treatment and waste consultant technologies are not
ritory and widely varying types of city. Any solution must take applied in the optimum way. Since the development of waste
into account the social, economic and environmental frame- management has a history of less than 20 years in China, the
work and characteristics of individual cities and regions. limited number of waste management professionals can not
satisfy the increasing requirements for staff in the waste man-
agement industry.
Employment in industrial waste management
The lack of trained and experienced industrial waste manage-
ment labour is a problem that many Chinese cities are facing.
Education and training
The main reason has been described (He & Shao 2004) as It is evident from the result of waste management education
‘the late development of waste management compared to and training surveys in the case study cities that previous
wastewater and air pollution treatment’. In the local environ- education and training focused on waste technology, waste
mental protection bureau (EPB) of medium and small cities, policies and regulation. Local EPBs are required to organize
there are typically only one or two staffs who work on waste at least four training sessions for industrial companies. Waste
management. About 90% of local authority officials who management experts are invited to give lectures on the latest
responded to the survey agreed that new management staff methods of waste treatment and minimization technology.
positions need to be provided within the authorities. However, evaluations of these training sessions are not very
Since the end of 2002, about 10 cities have established satisfactory. Mr. Zhang, from Lanzhou Petro-chemical Co.
their own city waste management centre most of these are Ltd, explained that, ‘they always talk very generally. What I
eastern cities. Qingdao is one of these cities with 19 employ- am interested in is the useful technology exactly for my com-
ees working in the waste management centre. However, the pany. I think more specific instruction and training should be
director of Qingdao waste management centre, Mr. Wu, still provided in order to let industrial companies benefit from it’.
stated that ‘more management positions should be provided Other interviewees from industrial companies called for
so we can give more detailed instructions to industrial com- waste management training to be provided not only by local
panies, the public community and waste service sectors’. authorities, but also by waste consulting companies who are
The industrial waste management employment condi- likely to be more practical.
tions in Zhengzhou and Lanzhou are far more behind. Taking In addition to the waste management staff in industrial
Lanzhou as an example, in the public sector there are only companies, officials from local authorities are also in need of
two employees from the local EPB and one employee at some education and training. Qingdao can be seen to offer a posi-
of the district EPBs working on daily industrial waste man- tive example in terms of this aspect of training. Regular lec-
agement. More waste monitoring supervision, waste treat- tures and seminars are organized for local officials mainly by
ment and landfill engineers, waste education and training, the Qingdao waste management centre. Experts from both
and research staff are urgently needed. The pollution control the academic field and practice, and management staff from

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W. Zhang, P. Roberts

other cities and from overseas are invited to give lectures, sity) found that public–private partnerships have received
after which panel discussion are held. It is one of the main over attention in recent years. Public–private partnership
ways for local authority staff to acquire newly developed should be an option for a city to perform better in the course
methods of approach and to share experience. of industrial waste management reform, but it has been con-
sidered to be a necessary tool by some cities. This misunder-
standing has led to inappropriate planning and misapplica-
Partnerships of each stakeholder tion of public–private partnerships in some cities, mainly in
All Chinese cities should pursue an integrated waste man- the inland areas.
agement strategy that involves all key stakeholders in strate- Although it is possible to identify various kinds of cooper-
gic planning and decision-making, and which examines in a ation between government, management agencies, and the
comprehensive manner the pros and cons of all practical public, the common aim is to promote the adoption of the
waste management techniques (World Bank 2005, p. 39). hierarchy of industrial waste management: reduce, reuse,
Integrated waste management requires the adoption of the recycle, recover, landfill, disposal and incineration. Using
hierarchy of waste management, and this implies heavy reli- economic instruments (such as subsidy and land develop-
ance on the co-operation of all stakeholders. ment rights) and public honour recognition to encourage the
With regard to the current industrial waste management industrial involvement of eco-industrial parks are the main
systems operating in the case study cities, national government reasons for the advanced level of eco-industrial park devel-
(mainly SEPA) and local environmental protection bureaus opment. However, technical and economic constraints plus
are starting to take broader roles in promoting better indus- lack of encouraging economic instruments have prevented
trial waste management systems (personal interview with Mr the further development of eco-industrial waste management
Wu, Director of Qingdao Waste Management Centre, 12 in Zhengzhou and Lanzhou.
April 2005). Other stakeholders who are emerging in the
industrial waste management system include local and inter-
national non-governmental organizations, local economic
Conclusion
agencies, local residents and research organizations. The The fundamental purpose of the research reported in this
cooperation of these stakeholders has been applied to various paper was to acquire understanding of ‘What constitutes an
areas from which a few types of cooperation are widely used in effective industrial waste management system in the specific
different cities: context of China?’ As the largest country in terms of popula-
tion and one which has the fastest rate of increase in GDP,
• industrial sector associations have been established by China is experiencing rapid economic and industrial devel-
EPB but are managed by industrial companies within the opment. Therefore, Chinese cities have had to develop their
sector; own approaches to create industrial waste management sys-
• a few companies have set up recycling groups; their rela- tems which reflect the particular political, economic and
tionship is based on making use of waste from other com- social situation. The exploration of different approaches
panies; applied to the key aspects of industrial waste management in
• cleaner production; and the different case study cities can be used as a fundamental
• eco-industry parks. basis for analysing and assessing integrated industrial waste
management systems in specific areas. This paper offers some
Public–private partnerships are likely to continue developing insights into the operation of these systems and these
and remain an important option in the future. The experi- insights suggest that it is essential to continue to monitor
ence of some eastern cities will play a positive role in and adjust both the content and operation of these systems.
improving industrial waste management in western lower- Future research on the transferable lessons from positive to
income areas. However, some researchers (Professor Hu from the average and negative situations are suggested based on
Qingdao Oceanic and Professor Yuan from Lanzhou Univer- the findings of the present study.

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