FEEM working papers "Note di lavoro"
Date: 10/2012

Energy from Waste: Generation Potential and Mitigation Opportunity

Authors: Francesco Bosello, Lorenza Campagnolo, Fabio Eboli, Ramiro Parrado
Type: Journal
JEL n.: C68, E27, Q42, Q43, Q54
JEL: Environmental Economics and Policy Studies
Pages: Volume 14, Issue 4, pp 403-420
Keywords: Climate Change, Mitigation, Energy From Waste


The present research proposes a macroeconomic assessment of the role of waste incineration with energy recovery (WtE) and controlled landfill biogas to electricity generation and their potential contribution to a CO2 emission reduction policy, within a recursive-dynamic computable general equilibrium model. From the modelling viewpoint, introducing these energy sectors in such a framework required both the extension of the GTAP7 database and the improvement of the ICES production nested function.  We focus our analysis on Italy as a signatory of the GHG reduction commitment of 20% by 2020 wrt 1990 levels proposed by the European Community; the rest of the world is represented by 21 geo-political countries/regions. It is shown that albeit in the near future WtE and landfill biogas will continue to represent a limited share of energy inputs in electricity sector (in Italy, around 2% for WtE and 0.6% for biogas in 2020) they could play a role in a mitigation policy context. The GDP cost of the EU emission reduction target for the Italian economy can indeed be reduced by 1% when the two energy generating options are available. In absolute terms, this translates into an annuitized value of 87-122 million €.


Suggested citation: Bosello, F., L. Campagnolo, F. Eboli, R. Parrado, 'Energy from Waste: Generation Potential and Mitigation Opportunity' published in Environmental Economics and Policy Studies, October 2012, Volume 14, Issue 4, pp 403-420, DOI 10.1007/s10018-012-0043-5.

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