Modeling Investment in Energy Recovery from Municipal Solid Waste

G. Anandalingam

DOI: 10.2190/LJ3P-TTLP-DCV8-RVQ7


A dynamic partial equilibrium model of the market for municipal solid waste (MSW) energy recovery equipment was developed to analyze the economics of energy recovery from MSW. Short-run and long-run solutions are derived, and the impact of extending investment tax credits are analyzed. Empirical results are obtained through simulations for a case in the United States. Results show that in order to offset welfare losses caused by the market distortions introduced by the tax credits, the oil use premium has to be more than $13 per barrel.

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