Waste generation is linked to consumption both in households (Final demand) and in the supply chain. Gaining understanding into the driving forces that change of waste generation in the supply chain can contribute to solving issues of waste management. The environmentally-extend input-output model is an effective tool with which to investigate the relationship between economic activities and waste generation. In this paper structural decomposition analysis (SDA) is employed to analyse the determinants of changes of waste generation in Australian economy from 2007-2008 to 2013-2014. Empirical results indicate that the major determinant for the increase of waste generation was change in Final demand's overall level of economic activity. Changes in the production mix of Final demand (mix effect) was responsible for a decrease of waste generation in Australian economy during the period. The Manufacturing sector was found to have the highest waste generation intensity. Meaning that each million $AUD output of the Manufacturing sector resulted in the most amount of waste generation. In addition, technological change has contributed the largest waste generation effect for the Construction sector in 2011-2012. These findings suggest that Final demand, technological changes and sectoral changes are identified as the drivers of Australian waste generation historically. To reduce waste generation, policy must be targeted at altering behaviour of consumption and waste generation, and increasing innovation of new ecological technologies for Australian industry.

The Household sector (HS) is not only the major cause of waste generation in industrial sectors, but also the same function as an industrial sector to generate waste. Current researches mainly focus on waste generation caused by the demand of the HS based on the environmentally-extend input-output (EEIO) models while the effect of the HS as an industrial sector on waste flow has not been analysed. In addition, there is uncertainty around the economic cost of waste management discussed in EEIO models due to the lack of the calculation of the cost of labor. We adjust waste supply-use table to analyse effects of the HS as an industrial sector on waste flow, resulting in closed waste supply-use table (CWSUT). The novelty of the method lies in a shift in the effect of the HS, from an exogenous factor to an endogenous factor. Results derived from Australian CWSUT in 2009-10 illustrate waste generation effects of intermediate sectors and the mixed waste flows of the HS. The definition of "intermediate sector" is that the sector consumes intermediate inputs from producing sectors and generates intermediate outputs to Final demand. They show that: (1) the Construction sector has the largest waste generation effects, in which the amount of masonry waste has accounted for the most direct and total effects of waste generation; (2) investigations regarding the HS in CWSUT can calculate the amount of direct and total waste generation, the monetary flow, and effects of the Income for the Household sector. Base on the above results, the paper puts forwards the application of the CWSUT on other types of environmental issues and waste policies.

Understanding the relationships between the Australian economic system and waste generation from intermediate sectors and households is a prerequisite for planning and implementing waste management strategies at a national scale. Data of waste generation accounts link to those of national economic accounts. However, in Australia, some years’ data are absent and so these links cannot be made. To rectify this data gap, this paper interpolates and extrapolates the Australian input-output table (IOT) of 2010–2011. Waste input-output (WIO) analysis is then used to assess the effects of the Australian economy on waste generation and treatment between 2009–2010 and 2010–2011. Analysis indicated that the result of interpolation was more reasonable than that of extrapolation, and the interpolation of the Australian IOT of 2010–2011 can be applicable. This comparative analysis of the time series data in WIO model has identified that: (1) per million $AUD of output of the Construction sector generated the most amount of direct and total waste during the period; (2) the relationships between the development of Australian economy and waste generation illustrate that the Australian economy is currently a traditional linear economy; (3) the effectiveness of waste-related policies are shown by the growth of the sums of direct and total effects of intermediate sectors on the Recovery sector; and (4) the amount of waste generated by households increased sharply over the two years. The physical flows of waste footprint show details of waste generation and treatment in the Australian economic system. The information provided in this paper is beneficial to formulate tailor-made policies for waste management in Australia.