Paper money is
lighter and cheaper to make but, on the other hand, coins last a lot longer.
Let's find out which has a lower footprint. We'll also learn what's behind the
Mint's stockpile of unwanted $1 coins.
National
Public Radio (NPR) has recently reported on the Federal Reserve's $1 Billion stash of $1 coins that nobody wants NPR
reports that "the coins are the wasteful byproducts of a third failed
congressional effort to get Americans to use one-dollar coins in everyday
commerce." The current incarnation of the $1 coin features presidential
portraits, George Washington through Ulysses S. Grant so far, and 20% of US
coins are required to carry the image of Sacagawea.
US $1 coins weigh 8.1 grams are made
from copper (88.5%) with a manganese brass cladding (6% zinc, 3.5% manganese,
and 2% nickel) so the $1 billion in coins contain:
- 7,168.5 metric tons of copper, worth at least $63.2 million dollars at today's prices,
- 486 metric tons of zinc, worth $1 million,
- 283.5 metric tons of manganese, worth $1 million, and
- 162 metric tons of nickel, worth $3.5 million.
A formal Life Cycle Assesment (LCA) on the $1 coin and banknote was performed back in 2007 by
students at Michigan State University, before the current stockpile was minted.
Their study was intended to answer "which is better, coin or paper?"
and looks at the entire life-cycle of coins and paper money, from resource
extraction all the way through to recycling/disposal.
What
Is The Impact Of Making The Coins?
The impact of making the coins
extends far beyond the US Mint. The impact begins with resource extraction,
namely mining. Mining can result in erosion, siltation of streams,
contamination from leachates and processing chemicals, and many other impacts, not to mention the human impact.
One of the easiest impacts to quantify is the impact on climate change through
emissions of greenhouse gasses (GHG) associated with each material. The GHG
emissions from the copper alone can be estimated at around 14,840 metric tonnes
of CO2-equivalents, or the equivalent of 2,700 average U.S. passenger vehicles.
What
Is The Impact Of Making Dollar Bills
A US $1 banknote weighs only 0.917
grams and is not actually made from paper pulp but rather from 75% cotton and
25% linen (the fibers from a flax plant). The environmental impacts of growing cotton are well known; herbicide/pesticide use, heavy water use,
and the use of defoliant chemicals. While coins tend to last many years or even
decades, the average dollar is replaced after 42 months of circulation due to
wear. After this it is partially recycled into roofing material but mostly sent to the landfill. On the other hand, dollar
coins remain in circulation about 17 times longer and are fully recyclable in
the end.
The GHG emissions associated with
the materials in a US dollar can be estimated at around 3 grams of CO2-equivalents,
so the emissions are about one fifth that of the coins. When you take into
account the longer lifespan of the coins though, the benefits of coins become
clear. The coins cause only one third the greenhouse gas emissions as
the equivalent US Dollar bills.
What
Is The Impact Of Coin Weight?
When the $1 coins are finally
released their heavier weight will have a small incremental, yet potentially significant
impact on transportation emissions. This is not only the case when coins are
transported from the US Mint to Reserve Banks and individual retail banks, but
also in the weight that they add to our own transportation footprint. The
emissions from air travel, for example, are highly dependent on the weight
being transported. This may seem trivial but just imagine if every American
commercial air travel passenger carried just one $1 coin over the 500 million passenger-miles traveled last year. If some airline have considered urging passengers to empty their bladders prior to departure then a couple of grams per customer in excess coinage must also have an impact.
In aggregate, this would result in an estimated 1,350 kilograms of extra GHG
emissions! Ok, so that's only one quarter of the emissions of the average US
passenger vehicle, so the US Dollar coin is still environmentally preferable.
The bottom line is that few people want heavy
coins weighing down their pockets and purses, as is evidenced by the growing
stockpile of unwanted coins in the US Mint's vaults. But one organization is
working to change that. The Dollar Coin Alliance is trying to promote the use of dollar coins for
their environmental and economic advantages. But today less and less people are
using cash anyway.