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29-04-2007, 12:35
The United States
Government has not released the chemical makeup of the oil-based ink, however, it can be
assumed that it is non-toxic to most humans. The effect of the ink that is wasted, when put in the
environment is also not known, and for the purposes of this report was ignored. The life cycle of
most paper dollars ends in landfills. While 10% of the dollar notes are recycled as roofing
shingles, the majority of paper dollars end in landfills, which reduces the amount of usable land
space, and can create pollution to the air and waterways12.
Manufacturing
The manufacturing process associated with the coin and note dollar are efficient. The
amount of ink, paper and metals are kept to a minimum to prevent waste. Assumptions that each
process produces equal amounts of waste in the form of paper and ink from the note, which will
go to landfill, and cleaning supplies, for the coins, reduce the need to explore the manufacturing
processes for more environmental effects. The Government has not supplied data referring to the
amount of waste generated in either process.
Packaging/Filling/Transportation/Distribution/Reuse/Storage
The Federal Reserve Bank distributes the note and coin into circulation and removes
them as well. The cost and processes associated with counting, transportation and distribution
were assumed to be similar for the coin and note dollar.
Recycling/Waste Management/Disposal
The Sacagawea coin dollar is completely recyclable. The United States Government can
melt the metal from the coins to produce fresh new coins. Assuming that there is no loss due to
coins not returning from circulation, the coins are completely recyclable.
The George Washington one-dollar note is not completely recyclable. The note is
bleached of ink, which becomes waste, and the paper is shredded and put into landfill, or recycled
as roofing tiles. Only 10% of the notes are recycled as roofing tiles leaving a large portion that
becomes landfill. The effects of landfill are not beneficial to the environment. They pollute
waterways with runoff, promote disease growth, increase methane, CO2 and H2S gas in the
atmosphere, and reduce the amount of usable land12.
Inventory Analysis
Data Collection
The relevant life cycle information was collected from the United States Mint and
Department of Treasury. The Federal Reserve Bank, in Atlanta, Georgia and the Coin Coalition
provided additional information. The manufacturing costs of the dollar coin and note were
provided and include the cost of the materials, labor, and equipment depreciation. The material
balance is based upon information provided by the Federal Government, and annual production
numbers in terms of coins per year and notes per year.
The waste data was based upon the production values for the coin and note, after
circulation. An assumption of zero loss to the circulation process was used, and no inflation was
calculated into these values. No data on coin waste was provided, except that the coins are
recycled after being taken out of circulation, in order to feed into the raw material stream. The
coin dollar has only been in circulation for approximately two years and it has an expected
lifetime of 30 years, so no coins have been removed from circulation at this time.
10
Stressors
The stressors for the dollar case study, based on the data collected include the raw
material, the liquid discharge, and solid wastes. The energy usage can be considered to be similar
for both processes, and will be needed for whichever dollar is chosen to be better for the
environment. No data was reported with information regarding air emissions, radiation, or noise,
and thus, are assumed to be negligible. The scale used involves positive values for beneficial
stress placed on the environment, zero for neutral effects, and negative values for harmful effects.
Impact Categories
Definition
The impact categories for this study are sub-categories of the four basic impact categories
of human health, ecological health, social welfare, and resource depletion. Under the category of
health hazards, the effects include biological contamination, and disease transmission. The
ecological health concerns include habitat loss, and pollution of waterways. The social welfare
dealings include the economic impact and psycho-social impact. Resource depletion involves
biotic resources, flow resources and stock resources.
Data
The data was calculated to fit the constraints of the problem, including no loss of dollars
out of circulation, and no inflation. Table 1, shows the natural resources used for each process
over one year. While using more resources, the coin dollar process produces fewer dollars, but
the source is recyclable for coins where it is not for dollars. Table 2, identifies the amount of
waste generated and the amount of mass coming out of circulation over a thirty year period.
Table 1. Resources used in dollar production.
RESOURCES USED (kg/year) Coin Note
Copper 20709000 0
Nickel 468000 0
Zinc 1404000 0
Manganese 819000 0
Oil Based Ink (Black and Green) 0 2700000
Virgin Cotton 0 2550000
Unrecycled Linen 0 850000
Transportation same same
Raw Energy same same
Misc. Resources same same
Cleaning (pre-circulation) x 0
Cleaning (post-circulation) 0 x
Total Amount 23400000 6100000
11
Table 2. Waste generated in dollar process over 30 years.
Coin Note
Resources used (kg/year) 23400000 6100000
Years to produce circulation
volume
7.6 27.4
Resources used to meet
circulation volume (kg)
177627273 167000000
Used Resources at current
production levels (kg/30 years)
379470000 183000000
Saved Resources over 30 years 201842727 16000000
Landfill Waste Generated (kg) 0 164700000
The Government also will benefit from the dollar coin economically. It costs $0.08 to
produce one coin and $0.04 to produce one note, however the coin and note have lifetimes of 30
years and 18 months respectively1, 2, 5. For every dollar coin put into circulation the government
receives a 30-year loan of $0.92 ($0.08 to make and sold to the public for $1) where for every
dollar note put into circulation it only gives an 18-month loan of $0.96. Because the coin is
completely recyclable, the coins bought back from the circulation in the public will decrease the
cost of the next batch of coins as the government is buying the resources to make new coins. This
will decrease the total cost of making the coins, and will increase the amount of revenue the
government receives from every coin manufactured.
Streamlining
The impact categories analyzed include the pre-manufacturing components, for each type
of dollar, and the recycle and disposal of each. A scale of zero to five was used with zero having
no, or negligible impact on the environment, and five having a great impact on the environment.
The impact analysis can be seen below in Tables 3 and 4. It can clearly be shown that the paper
dollar note has a greater average impact on the environment than the dollar coin.
Table 3. Impact Analysis of the Sacagawea Coin Dollar.
Human
Health
Ecological
Health
Resource
Depletion
Row Average
Pre-manufacture Copper 0 0 3 1
Zinc 0 0 2 0.667
Manganese 0 0 2 0.667
Nickel 0 0 2 0.667
Recycle 0 0 0 0
Disposal 0 0 0 0
Average 0.5
Table 4. Impact Analysis of the Paper Dollar Note.
Human
Health
Ecological
Health
Resource
Depletion
Row Average
Pre-Manufacture Cotton 0 0 3 1
Linen 0 0 2 0.667
Ink 0 0 3 1
Recycle 0 0 0 0
Disposal 2 2 1 1.667
Average 0.867
In addition to the environmental impact, some economic factors favor the coin dollar.
Due to inflation many coin operated machines and vending machines now require a one dollar
fee, where in the 1960's the fee for these products was about one quarter. The dollar coin would
remove the need to carry four quarter to operate a coin-operated laundry machine, or buy a soda
from a vending machine. The one dollar coin can also replace tokens in public transportation
systems5.
Conclusions
The life cycle assessment of the dollar coin and note has demonstrated that the coin is
better for the environment than the note. Economics also favor the coin dollar with its longer
lifetime, and recyclable nature. The coin dollar has a need in our economy, replacing the need to
carry four quarters to operate vending machines that only required one in the 1960's. Overall, due
to the nature of the dollar to be put into landfills, the environmental impact of the paper dollar is
greater than the coin dollar.
Recommendations
The coin dollar can replace the dollar note in the American economy, as the Canadians
have succeeded in doing. The Department of Engraving and Printing can then increase
production of the $2 note, which has a longer lifetime than the $1 note, and can replace the onedollar
note in the cash register drawer. This will reduce the rate at which the used notes are
placed in landfill, allow the dollar coin to be utilized as tokens for mass transit systems, and
reduce the number of quarters needed for vending machines.
The economics also lend themselves to the increased production of the coin dollar, and
replacing the one-dollar note with a two-dollar note. Most cash register drawers have five places
for bills, and five places for coins. With our recommended solution, these slots would all be
filled with different denominations, and none would be left empty. The cash drawer would have
spaces for five coins (penny, nickel, dime, quarter, dollar) and five bills (two, five, ten, twenty,
and large bills/checks). In addition, the ability of the coin to replace the overuse of quarters in
vending machines, and the ability to use the coin as tokens in public transportation systems, add
to the usefulness of the coin.
Overall, our recommendation is for the United States Federal Government to replace the
paper dollar note with the Sacagawea coin dollar, and manufacture more $2 notes, which have a
longer lifetime and will not fill landfills as quickly
Government has not released the chemical makeup of the oil-based ink, however, it can be
assumed that it is non-toxic to most humans. The effect of the ink that is wasted, when put in the
environment is also not known, and for the purposes of this report was ignored. The life cycle of
most paper dollars ends in landfills. While 10% of the dollar notes are recycled as roofing
shingles, the majority of paper dollars end in landfills, which reduces the amount of usable land
space, and can create pollution to the air and waterways12.
Manufacturing
The manufacturing process associated with the coin and note dollar are efficient. The
amount of ink, paper and metals are kept to a minimum to prevent waste. Assumptions that each
process produces equal amounts of waste in the form of paper and ink from the note, which will
go to landfill, and cleaning supplies, for the coins, reduce the need to explore the manufacturing
processes for more environmental effects. The Government has not supplied data referring to the
amount of waste generated in either process.
Packaging/Filling/Transportation/Distribution/Reuse/Storage
The Federal Reserve Bank distributes the note and coin into circulation and removes
them as well. The cost and processes associated with counting, transportation and distribution
were assumed to be similar for the coin and note dollar.
Recycling/Waste Management/Disposal
The Sacagawea coin dollar is completely recyclable. The United States Government can
melt the metal from the coins to produce fresh new coins. Assuming that there is no loss due to
coins not returning from circulation, the coins are completely recyclable.
The George Washington one-dollar note is not completely recyclable. The note is
bleached of ink, which becomes waste, and the paper is shredded and put into landfill, or recycled
as roofing tiles. Only 10% of the notes are recycled as roofing tiles leaving a large portion that
becomes landfill. The effects of landfill are not beneficial to the environment. They pollute
waterways with runoff, promote disease growth, increase methane, CO2 and H2S gas in the
atmosphere, and reduce the amount of usable land12.
Inventory Analysis
Data Collection
The relevant life cycle information was collected from the United States Mint and
Department of Treasury. The Federal Reserve Bank, in Atlanta, Georgia and the Coin Coalition
provided additional information. The manufacturing costs of the dollar coin and note were
provided and include the cost of the materials, labor, and equipment depreciation. The material
balance is based upon information provided by the Federal Government, and annual production
numbers in terms of coins per year and notes per year.
The waste data was based upon the production values for the coin and note, after
circulation. An assumption of zero loss to the circulation process was used, and no inflation was
calculated into these values. No data on coin waste was provided, except that the coins are
recycled after being taken out of circulation, in order to feed into the raw material stream. The
coin dollar has only been in circulation for approximately two years and it has an expected
lifetime of 30 years, so no coins have been removed from circulation at this time.
10
Stressors
The stressors for the dollar case study, based on the data collected include the raw
material, the liquid discharge, and solid wastes. The energy usage can be considered to be similar
for both processes, and will be needed for whichever dollar is chosen to be better for the
environment. No data was reported with information regarding air emissions, radiation, or noise,
and thus, are assumed to be negligible. The scale used involves positive values for beneficial
stress placed on the environment, zero for neutral effects, and negative values for harmful effects.
Impact Categories
Definition
The impact categories for this study are sub-categories of the four basic impact categories
of human health, ecological health, social welfare, and resource depletion. Under the category of
health hazards, the effects include biological contamination, and disease transmission. The
ecological health concerns include habitat loss, and pollution of waterways. The social welfare
dealings include the economic impact and psycho-social impact. Resource depletion involves
biotic resources, flow resources and stock resources.
Data
The data was calculated to fit the constraints of the problem, including no loss of dollars
out of circulation, and no inflation. Table 1, shows the natural resources used for each process
over one year. While using more resources, the coin dollar process produces fewer dollars, but
the source is recyclable for coins where it is not for dollars. Table 2, identifies the amount of
waste generated and the amount of mass coming out of circulation over a thirty year period.
Table 1. Resources used in dollar production.
RESOURCES USED (kg/year) Coin Note
Copper 20709000 0
Nickel 468000 0
Zinc 1404000 0
Manganese 819000 0
Oil Based Ink (Black and Green) 0 2700000
Virgin Cotton 0 2550000
Unrecycled Linen 0 850000
Transportation same same
Raw Energy same same
Misc. Resources same same
Cleaning (pre-circulation) x 0
Cleaning (post-circulation) 0 x
Total Amount 23400000 6100000
11
Table 2. Waste generated in dollar process over 30 years.
Coin Note
Resources used (kg/year) 23400000 6100000
Years to produce circulation
volume
7.6 27.4
Resources used to meet
circulation volume (kg)
177627273 167000000
Used Resources at current
production levels (kg/30 years)
379470000 183000000
Saved Resources over 30 years 201842727 16000000
Landfill Waste Generated (kg) 0 164700000
The Government also will benefit from the dollar coin economically. It costs $0.08 to
produce one coin and $0.04 to produce one note, however the coin and note have lifetimes of 30
years and 18 months respectively1, 2, 5. For every dollar coin put into circulation the government
receives a 30-year loan of $0.92 ($0.08 to make and sold to the public for $1) where for every
dollar note put into circulation it only gives an 18-month loan of $0.96. Because the coin is
completely recyclable, the coins bought back from the circulation in the public will decrease the
cost of the next batch of coins as the government is buying the resources to make new coins. This
will decrease the total cost of making the coins, and will increase the amount of revenue the
government receives from every coin manufactured.
Streamlining
The impact categories analyzed include the pre-manufacturing components, for each type
of dollar, and the recycle and disposal of each. A scale of zero to five was used with zero having
no, or negligible impact on the environment, and five having a great impact on the environment.
The impact analysis can be seen below in Tables 3 and 4. It can clearly be shown that the paper
dollar note has a greater average impact on the environment than the dollar coin.
Table 3. Impact Analysis of the Sacagawea Coin Dollar.
Human
Health
Ecological
Health
Resource
Depletion
Row Average
Pre-manufacture Copper 0 0 3 1
Zinc 0 0 2 0.667
Manganese 0 0 2 0.667
Nickel 0 0 2 0.667
Recycle 0 0 0 0
Disposal 0 0 0 0
Average 0.5
Table 4. Impact Analysis of the Paper Dollar Note.
Human
Health
Ecological
Health
Resource
Depletion
Row Average
Pre-Manufacture Cotton 0 0 3 1
Linen 0 0 2 0.667
Ink 0 0 3 1
Recycle 0 0 0 0
Disposal 2 2 1 1.667
Average 0.867
In addition to the environmental impact, some economic factors favor the coin dollar.
Due to inflation many coin operated machines and vending machines now require a one dollar
fee, where in the 1960's the fee for these products was about one quarter. The dollar coin would
remove the need to carry four quarter to operate a coin-operated laundry machine, or buy a soda
from a vending machine. The one dollar coin can also replace tokens in public transportation
systems5.
Conclusions
The life cycle assessment of the dollar coin and note has demonstrated that the coin is
better for the environment than the note. Economics also favor the coin dollar with its longer
lifetime, and recyclable nature. The coin dollar has a need in our economy, replacing the need to
carry four quarters to operate vending machines that only required one in the 1960's. Overall, due
to the nature of the dollar to be put into landfills, the environmental impact of the paper dollar is
greater than the coin dollar.
Recommendations
The coin dollar can replace the dollar note in the American economy, as the Canadians
have succeeded in doing. The Department of Engraving and Printing can then increase
production of the $2 note, which has a longer lifetime than the $1 note, and can replace the onedollar
note in the cash register drawer. This will reduce the rate at which the used notes are
placed in landfill, allow the dollar coin to be utilized as tokens for mass transit systems, and
reduce the number of quarters needed for vending machines.
The economics also lend themselves to the increased production of the coin dollar, and
replacing the one-dollar note with a two-dollar note. Most cash register drawers have five places
for bills, and five places for coins. With our recommended solution, these slots would all be
filled with different denominations, and none would be left empty. The cash drawer would have
spaces for five coins (penny, nickel, dime, quarter, dollar) and five bills (two, five, ten, twenty,
and large bills/checks). In addition, the ability of the coin to replace the overuse of quarters in
vending machines, and the ability to use the coin as tokens in public transportation systems, add
to the usefulness of the coin.
Overall, our recommendation is for the United States Federal Government to replace the
paper dollar note with the Sacagawea coin dollar, and manufacture more $2 notes, which have a
longer lifetime and will not fill landfills as quickly