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

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Date

May 29, 2015

Authors

Han Kyul Yoo, Molly Macauley, Karen Palmer, Jhih-Shyang Shih, and Shanjun Li

Publication

Journal Article

Reading time

1 minute

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 10.4 MMTCO2e reductions in greenhouse gas emissions and a net benefit of $41.8 million.

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Topics

Renewable Energy

Authors

Han Kyul Yoo

Molly K. Macauley

Karen Palmer

Senior Fellow; Director, Electric Power Program

Karen Palmer is a senior fellow at Resources for the Future and an expert on the economics of environmental, climate and public utility regulation of the electric power sector.

Jhih-Shyang Shih

Fellow

Jhih-Shyang Shih is a fellow at RFF. His research interests lie in integrated system analysis of environmental and resource policy and decisionmaking.

Shanjun Li

University Fellow

Shanjun Li is a university fellow at RFF. His research areas include environmental and energy economics, industrial organization, and Chinese economy.

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