Assessing the Role of Renewable Energy Policies in Landfill Gas to Energy Projects

29 Pages Posted: 5 May 2014

See all articles by Shanjun Li

Shanjun Li

Cornell University - School of Applied Economics and Management

Han Kyul Yoo

Greenhouse Gas Inventory and Research Center

Molly Mcauley

Resources for the Future

Karen L. Palmer

Resources for the Future

Jhih-Shyang Shih

Resources for the Future

Date Written: May 2, 2014

Abstract

Methane (CH4) is the second most prevalent greenhouse gas and has a global warming potential at least 28 times as high as Carbon Dioxide (CO2). In the United States, Municipal Solid Waste (MSW) landfills are reported to be the third-largest source of human-made methane emissions, responsible for 18% of methane emissions in 2011. Capturing landfill gas (LFG) for use as an energy source for electricity or heat produces alternative energy as well as environmental benefits. A host of federal and state policies encourage the development of landfill gas to energy (LFGE) projects. This research provides the first systematic economic assessment of the role of these policies on adoption decisions. Results suggest that Renewable Portfolio Standards and investment tax credits have contributed to the development of these projects, accounting for 13 of 277 projects during our data period from 1991 to 2010. These policy-induced projects lead to 12.5 MMTCO2e reductions in greenhouse gas emissions and a net benefit of $52.59 million.

Keywords: Renewable energy, landfill methane, renewable portfolio standards, investment tax credit

JEL Classification: Q48, Q53

Suggested Citation

Li, Shanjun and Yoo, Han Kyul and Mcauley, Molly and Palmer, Karen and Shih, Jhih-Shyang, Assessing the Role of Renewable Energy Policies in Landfill Gas to Energy Projects (May 2, 2014). Available at SSRN: https://ssrn.com/abstract=2432374 or http://dx.doi.org/10.2139/ssrn.2432374

Shanjun Li (Contact Author)

Cornell University - School of Applied Economics and Management ( email )

405 Warren Hall
Ithaca, NY 14853
United States

Han Kyul Yoo

Greenhouse Gas Inventory and Research Center ( email )

Seoul
Korea, Republic of (South Korea)

Molly Mcauley

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Karen Palmer

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Jhih-Shyang Shih

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5028 (Phone)

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