Aligning Resource Efficiency and Economic Efficiency

This policy brief explores the economic incentives driving resource inefficiency and examines interventions to rebalance labour and material costs. In construction, standardised components like steel beams are frequently over-specified to minimise labour expenses, despite wasting materials. To mitigate this, policies such as the United Kingdom landfill tax and Swedish value-added tax reductions for repairs lower labour taxation while pricing environmental externalities, successfully decreasing waste tonnage and promoting sustainable practices.