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GTAP Resource #3224

"The contribution to climate change mitigation policy of Energy from Waste in Italy"
by Bosello, Francesco, Lorenza Campagnolo, Fabio Eboli and Ramiro Parrado

When referring to non fossil fuels, the main focus is usually on nuclear and Renewable Energy Sources (RES): wind, solar, hydro and biofuels. However, there are other important sources that may have a role to tackle climate change and limit other negative environmental problems while exploiting useful resources. This is the case of wastes. After the reduction in waste generation, the so-called integrated waste management may create important benefits from the social, the economic and the environmental viewpoints allowing to recovering either material or energy.
The present research proposes a macroeconomic assessment of impacts of Waste to Energy (WtE) (i.e. waste incineration with energy recovery) and of controlled landfill biogas to electricity generation and their potential contribution to a CO2 emission reduction policy, within a dynamic-recursive computable general equilibrium framework. To introduce WtE and landfill biogas for electricity generation, the GTAP 7 database and the production tree have been extended appropriately. To our knowledge, this is the first time that this has been done.
We focus our analysis on Italy as a signatory of the GHG reduction commitment of 20% proposed by the European Community to be achieved by 2020 and confirmed once again at the Copenhagen summit organised by UNFCCC in December 2009.
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 European emission reduction target for the Italian economy can indeed be reduced by the 1% when the two energy generating options are available. In absolute terms this translates into an annuitized option value of 87-122 million €.

Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Created: Eboli, F. (4/6/2010)
Updated: Eboli, F. (4/6/2010)
Visits: 1,897
- Climate change policy
- Dynamic modeling
- Calibration and parameter estimation
- The GTAP Data Base and extensions
- European Union

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