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PESTEL analysis of the development of the waste-to-energy incineration industry in China

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  • Song, Jinbo
  • Sun, Yan
  • Jin, Lulu

Abstract

With the upgrading of living standards and rapid urbanization throughout the world, municipal solid waste (MSW) treatment has become a ubiquitous environmental issue. Incineration can reduce the quantity and volume of MSW, save land resources and generate power, and it has been considered an effective means of MSW treatment. However, a variety of obstacles to the development of the waste-to-energy (WTE) incineration industry have emerged. To identify and overcome these obstacles, this paper applies the Political, Economic, Social, Technological, Environmental and Legal (PESTEL) framework to analyse the macro-environment of the WTE incineration industry in China. First, the MSW treatment status and treatment methods in China are summarized. Then, we analyse the PESTEL factors in the WTE incineration industry in China, including relevant legislation and policies, investment modes and intensity, the distribution and scale of investment, difficulties in MSW treatment and classification, public concerns, the various incineration techniques, environmental protection issues and the existing shortcomings. Finally, managerial implications and suggestions for the government and private sector regarding policy changes, the application of the Public-Private Partnership (PPP) mode and efficient project operation are provided. It is expected to pave the way for private investors to finance such projects.

Suggested Citation

  • Song, Jinbo & Sun, Yan & Jin, Lulu, 2017. "PESTEL analysis of the development of the waste-to-energy incineration industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 276-289.
    • Handle: RePEc:eee:rensus:v:80:y:2017:i:c:p:276-289
    DOI: 10.1016/j.rser.2017.05.066
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