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Energy from Waste: Generation Potential and Mitigation Opportunity

  • Francesco Bosello

    (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and University of Milan)

  • Lorenza Campagnolo

    (Fondazione Eni Enrico Mattei and University of Venice Ca’ Foscari)

  • Fabio Eboli

    (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and University of Venice Ca’ Foscari)

  • Ramiro Parrado

    (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and University of Venice Ca’ Foscari)

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 €.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2014.38.

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Date of creation: Apr 2014
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Handle: RePEc:fem:femwpa:2014.38
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  1. Fabio Eboli & Ramiro Parrado & Roberto Roson, 2009. "Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model," Working Papers 2009.43, Fondazione Eni Enrico Mattei.
  2. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  3. Sue Wing, Ian, 2008. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technology detail in a social accounting framework," Energy Economics, Elsevier, vol. 30(2), pages 547-573, March.
  4. Gottinger, Hans W., 1998. "Greenhouse Gas Economics and Computable General Equilibrium," Journal of Policy Modeling, Elsevier, vol. 20(5), pages 537-580, October.
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