Food Waste Externalities: The Hidden Costs of Food Waste in Singapore
Chuah Qing Neng (Research Executive)
Source: National Environment Agency & Department of Statistics Singapore
In 2023, the average person in Singapore generated 128 kg of food waste annually, of which approximately 105 kg was disposed off. Food waste generation has fluctuated over the years. The sharp decline in 2020 was likely attributed to the COVID-19 pandemic, which led to a reduction in dining-out activities. This, in turn, decreased food waste from commercial and industrial (C&I) premises, which contribute 40% of the total food waste generated (National Environment Agency, 2020).
Food waste is a negative externality, where private decisions impose costs on society that are not reflected in market decision-making. The cost of food waste goes beyond the price of the food itself and the cost of its disposal; it also has environmental impacts. In Singapore, food waste that is not recycled is sent to the Waste-to-Energy (WtE) plants for incineration (National Environment Agency, 2020). Food waste is categorized as Municipal Solid Waste (MSW), and the incineration of MSW emits 134 kg of CO₂, 88 grams of CH₄, and 69 grams of N₂O per ton of waste (Hwang et al., 2017).
In Singapore, the carbon tax is calculated by converting all greenhouse gases (GHGs) into carbon dioxide equivalents (CO₂e), and businesses are taxed based on the amount of GHGs emissions they produce, at a specified rate (Government of Singapore, 2018). We are using it as a tool to estimate the environmental cost associated with the incineration of MSW.
In 2023, 623,000 tonnes of food waste were disposed off, resulting in an environmental cost of SGD 2,410,215.68. Assuming an average monthly expenditure of SGD 1,200 on groceries and meals to feed a family of four, this amount could feed approximately 167 families for one year.
To encourage food waste recycling, policies in Singapore target both the demand side and the supply side. On the demand side, the government boosts demand for proper food waste management through a combination of financial incentives and regulatory measures. A key financial incentive is the 3R Fund, a co-funding initiative aimed at supporting projects that reduce or recycle at least 100 tonnes of solid waste over the project duration. This fund is open to companies, non-profits, schools, and other organizations, covering up to 80% of qualifying costs (National Environment Agency, 2020). Furthermore, the Resource Sustainability Act mandates that, from 2024, large food waste generators such as malls and hotels must segregate their food waste (National Environment Agency, 2020). These efforts aim to influence consumer behavior and consumption patterns to reduce the amount of food waste disposed of.
On the supply side, the government strengthens capabilities by investing in infrastructure and enforcing strict regulations to facilitate efficient food waste treatment. A major investment is the $1.5 billion Tuas Nexus, an integrated facility that will process food waste and generate energy (National Environment Agency, 2020). Regulations also require new large C&I buildings to reserve space for on-site food waste treatment systems, ensuring that future developments are equipped to manage waste sustainably. These comprehensive investments and regulatory efforts ensure that Singapore has the necessary infrastructure to manage and treat the substantial amount of food waste generated each year.
Food waste in Singapore poses significant environmental and societal costs, with its management requiring both behavioral changes and infrastructural investment. Through targeted policies, Singapore aims to reduce food waste and its negative externalities. These measures reflect a holistic approach to fostering sustainability while addressing the challenges of food waste management.
References
Government of Singapore. (2018). Carbon Pricing Act 2018. Singapore Statutes Online. Retrieved November 17, 2024 from https://sso.agc.gov.sg/Act/CPA2018?ProvIds=Sc3-#Sc3-
Hwang, K. L., Choi, S. M., Kim, M. K., Heo, J. B., & Zoh, K. D. (2017). Emission of greenhouse gases from waste incineration in Korea. Journal of environmental management, 196, 710-718.
National Environment Agency. (2020). Food waste segregation and treatment guidebook. National Environment Agency.