The process of reducing waste material and energy in manufacturing, use, and disposal by techniques such as dematerialization, transmaterialization, recycling, sustainable design, closed-loop supply chains, etc.
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I would recommend a very interesting policy-oriented and forward thinking guide on the topic of waste reduction prepared by the highly respected OECD:
Strategic Waste Prevention: OECD Reference Manual, authored by Fabio Vancini.
available at http://www.olis.oecd.org/olis/2000doc.nsf/LinkTo/env-epoc-ppc(2000)5-final