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A Cost-effectiveness Analysis for Incineration or Recycling of Dutch Household Plastic Waste

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  • Gradus, Raymond H.J.M.
  • Nillesen, Paul H.L.
  • Dijkgraaf, Elbert
  • van Koppen, Rick J.

Abstract

The cost-effectiveness of two different plastic waste treatment options is compared. This paper evaluates the recycling of plastic waste with the more conventional incineration of plastic waste, using data for the Netherlands. Both options have specific revenues and costs. The main benefit from plastic recycling is the avoidance of CO2 emissions that otherwise would occur during incineration and from the production of virgin (new) plastic material. At the same time, there are significant costs involved, such as collection, separation, sorting, and recycling. The benefit from plastic waste incineration is the energy that can be recovered, which reduces emissions in the regular energy production sector by displacing production. The main cost associated with incineration is that this requires a waste-to-energy plant with the associated capital investments. Summing the costs and revenues from both plastic waste treatment options and comparing the results, leads to an implicit CO2 abatement price of 178€/t of CO2 in case of plastic recycling. In general, this implicit price is much higher than current (or historic) ETS prices, the estimated external costs of CO2 emissions, or alternatives to reduce CO2 emissions (e.g. renewable energy). A sensitivity analysis shows that this conclusion is robust.

Suggested Citation

  • Gradus, Raymond H.J.M. & Nillesen, Paul H.L. & Dijkgraaf, Elbert & van Koppen, Rick J., 2017. "A Cost-effectiveness Analysis for Incineration or Recycling of Dutch Household Plastic Waste," Ecological Economics, Elsevier, vol. 135(C), pages 22-28.
    • Handle: RePEc:eee:ecolec:v:135:y:2017:i:c:p:22-28
    DOI: 10.1016/j.ecolecon.2016.12.021
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    Cited by:

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    3. Balint Horvath & Edmund Mallinguh & Csaba Fogarassy, 2018. "Designing Business Solutions for Plastic Waste Management to Enhance Circular Transitions in Kenya," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
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    5. Raymond Gradus, 2020. "Postcollection Separation of Plastic Recycling and Design-For-Recycling as Solutions to Low Cost-Effectiveness and Plastic Debris," Sustainability, MDPI, vol. 12(20), pages 1-12, October.
    6. Deger Saygin & Dolf Gielen, 2021. "Zero-Emission Pathway for the Global Chemical and Petrochemical Sector," Energies, MDPI, vol. 14(13), pages 1-28, June.
    7. Laura Levaggi & Rosella Levaggi & Carmen Marchiori & Carmine Trecroci, 2020. "Waste-to-Energy in the EU: The Effects of Plant Ownership, Waste Mobility, and Decentralization on Environmental Outcomes and Welfare," Sustainability, MDPI, vol. 12(14), pages 1-12, July.
    8. Zhang, Junting & Qin, Quande & Li, Guangming & Tseng, Chao-Heng & Fang, Guohao, 2023. "Assessing the impact of waste separation on system transition and environmental performance through a city-scale life cycle assessment," Ecological Economics, Elsevier, vol. 211(C).
    9. Elbert Dijkgraaf & Raymond Gradus, 2019. "More bottle banks only imply a small increase in recycling of glass in the Netherlands," Tinbergen Institute Discussion Papers 19-088/V, Tinbergen Institute.
    10. Borazon, Elaine Quintana & Chuang, Hsueh-Hua, 2023. "Resilience in educational system: A systematic review and directions for future research," International Journal of Educational Development, Elsevier, vol. 99(C).
    11. Elbert Dijkgraaf & Raymond Gradus, 2020. "Post-collection Separation of Plastic Waste: Better for the Environment and Lower Collection Costs?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 127-142, September.
    12. Javad Torkashvand & Mohammad Mahdi Emamjomeh & Mitra Gholami & Mahdi Farzadkia, 2021. "Analysis of cost–benefit in life-cycle of plastic solid waste: combining waste flow analysis and life cycle cost as a decision support tool to the selection of optimum scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13242-13260, September.
    13. Andrzej Marcinkowski & Paweł Haręża, 2022. "The Effect of Heat Source on Cost of Preparation of Household Food Packaging Waste for Recycling," Energies, MDPI, vol. 15(16), pages 1-13, August.
    14. Elbert Dijkgraaf & Raymond Gradus, 2021. "Are Bottle Banks Sufficiently Effective for Increasing Glass Recycling Rates?," Sustainability, MDPI, vol. 13(17), pages 1-11, August.
    15. Peter Birch Sørensen, 2017. "The Basic Environmental Economics of The Circular Economy," EPRU Working Paper Series 17-04, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    16. Nainggolan, Doan & Pedersen, Anders Branth & Smed, Sinne & Zemo, Kahsay Haile & Hasler, Berit & Termansen, Mette, 2019. "Consumers in a Circular Economy: Economic Analysis of Household Waste Sorting Behaviour," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    17. Pablo Emilio Escamilla-García & Ana Lilia Coria-Páez & Francisco Pérez-Soto & Francisco Gutiérrez-Galicia & Carolina Caire & Blanca L. Martínez-Vargas, 2023. "Financial and Technical Evaluation of Energy Production by Biological and Thermal Treatments of MSW in Mexico City," Energies, MDPI, vol. 16(9), pages 1-14, April.
    18. Broberg, Thomas & Dijkgraaf, Elbert & Meens-Eriksson, Sef, 2022. "Burn or let them bury? The net social cost of producing district heating from imported waste," Energy Economics, Elsevier, vol. 105(C).
    19. Pegah Zahedifar & Lukasz Pazdur & Christophe M. L. Vande Velde & Pieter Billen, 2021. "Multistage Chemical Recycling of Polyurethanes and Dicarbamates: A Glycolysis–Hydrolysis Demonstration," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    20. Shashi, & Centobelli, Piera & Cerchione, Roberto & Jhamb, Deepika, 2023. "Double-edged circularity: Comparative assessment of circular and non-circular consumers," Ecological Economics, Elsevier, vol. 212(C).
    21. Hui Feng & Yirong Li & Renyan Mu & Lei Wu, 2023. "The Impact of Investment Efficiency in the Digital Economy on Urban Waste Reduction: Evidence from China," Sustainability, MDPI, vol. 15(24), pages 1-15, December.

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    More about this item

    Keywords

    Recycling; Incineration; Plastic waste; Cost-effectiveness analysis;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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