a presentation orbit alb 2012 version fin 2
TRANSCRIPT
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www.irstea.fr
Pour mieux
affirmerses missions,
le Cemagref
devient Irstea
Andr LE BOZEC (Dr.-Ing economist)
Lynda AISSANI (research engineer)
ORBIT 2012 RENNES - 12-14th june 2012
ECONOMIC ASPECTS OFBIODEGRADABLE WASTEMANAGEMENT
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Overview
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Context of biodegradable waste
management
Biological technologies and applications
Industrial economics and decision support
Environmental impacts and monetization
Conclusion
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Context
of
biodegradable
waste management
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Definition of biodegradable waste
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Biowaste is defined by European commission in the
Green paper on the management of biowaste as :
Food waste from: households, restaurants,caterers, retail premises
Garden waste from households Park waste from local authorities
Comparable waste from food processing plants
This definition does not include forestry or
agricultural residues, manure, sewage sludge, or
other biodegradable waste such as natural textiles,
paper or processed wood.
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Definition of biodegradable waste
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The precise definition of biodegradable municipal
waste varies between EU Member States.
Biodegradable waste is defined in the Landfill
Directive (1999/31/EC) as "any waste that is
capable of undergoing anaerobic or aerobicdecomposition, such as food and green waste, andpaper and paperboard".
In general, BMW includes food and green waste,paper and cardboard and other biodegradable
waste.
Also : BMW = FGW + Paper and Carboard
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Context of biodegradable waste
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The management of biodegradable municipal waste(BMW) is currently guided by the Landfill Directive(1999/31/EC).
This directive sets targets for the total amount of BMWthat can be landfilled in the future.
In 2016: minimization of landfilling biodegradable
waste no more than 35% of the quantities produced in1995.
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Context of biodegradable waste
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Green paper on biowaste management in the EU from
december 2008:
summarizes important background information about
current policies on bio-waste management ,
aims to explore options for the further development of
the management of bio-waste.
aims to prepare a debate on the possible need for
future policy action, as a Biowaste directive proposal.
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Context of biodegradable waste
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Waste Framework Directive 2008/98/EC : waste hierarchy
Source : EUR 24917 EN - 2011
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New context of biodegradable waste in France
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New law n 2009-967 (3th August 2009) named GrenelleLaw :
Increase the organic and packaging recycling ratefrom 24% in 2004 to 35% in 2012 and 45% in 2015of household waste .
Source reduction of 7% in 2015 of householdwaste.
Reduce quantities of household waste treated bylandfill or incineration by 15% in 2012.
Law n 2012-788 (12th July 2012)
Since 1st January 2012, the large producers of
biowaste are required to implement a separate
collection for material recovery.
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Biological technologies
andapplications
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Biowaste = kitchen waste + garden waste (leaves, grasscutting)
Home composting : composting of biowaste (foodwaste and garden waste) as well as the use of the
compost in a garden belonging to a private household
Foot building composting
Common composting techniques
Piles
Bins
Open boxes
The advantage of avoiding the collection step
The inconvenient of generating greenhouse gas such as methane
Biowaste management on the domestic scale
Biological technologies
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Biowaste = kitchen waste + garden waste (leaves, grasscutting, hedge clippings) brought in civic amenities or collected by door
to door separate collection
Green waste = garden waste + park waste
Centralised composting
Common composting technique:
Windrow composting
In-vessel composting
Biowaste management on the local authorities togetherscale
Biological technologies
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Biowaste management on the local authorities togetherscale : Green waste composting
Biological technologies
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Different configurations of MBT would result in very different
quality of OUTPUTS :
Biodrying prior waste to energy (high calorific fraction)
Stabilisation by aerobic or anaerobic fermentation prior
landfilling
In vessel composting (tunnels, closed halls, turning
drum)
Anaerobic digestion and digestate composting
Residual waste treatement : Mechanical biological treatment
Biological technologies
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Residual waste treatement : Illustration LORIENT
Biological technologies
Biowaste : collection + composting 16000 t/anResidual waste : stabilisation : 57000 t/an
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Residual waste treatement : Illustration LILLE
Biological technologies
Biowaste : collection + anaerobic digestion 108 000 t/an
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Residual waste treatement : Illustration LANTIC
Biological technologies
Residual waste : collection + composting 13000 t/an
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Residual waste treatement : Illustration VARENNES JARCY
Biological technologies
Residual waste : collection + anaerobic digestion 100 000 t/an
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Two possible paths for residual waste composting
Kitchen and garden household waste separate
collection for composting + residual waste
stabilisation in Germany, Austria
Residual household waste composting directly
in France, Spain
Residual waste treatement : Mechanical biological treatment
Biological technologies
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How to compost residual waste ?
The results of research have shown the conditions that must be
met:
- 1. Implementation of hazardous waste collection ( separateor civic amenities)
- 2. Avoiding the residual waste shredding prior the
fermentation
- 3. Implementation refining to extract heavy and light particlesprior the fermentation
Residual waste treatement
Biological technologies
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Categories of costs
Biological technologies
Market cost
Private cost
Production cost
Efficiency
Non market cost
External cost
Environmentalcost or benefit
Environmentalvalues
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Industrial economics
and
decision support
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Industrial economics and applications
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Activities vary in terms of their cost structures
The ratio of fixed to variable costs vary with the level
of utilisation
Economies of scale refer to the phenomenon where
the average production costs per unit of output (/t)
decrease with the increase in the scale
Cost production is expression in euro per ton of
treated waste
Biological treatment unit approach
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Industrial economics and applications
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Method developed in U.S.A. by R. Turton (1998) and
Peters & Timmerhaus (2002) on the economicevaluation of chemical processes (capital costs,
operating costs ) is implemented by A. Le Bozec in
European project AWAST
Economic assesment method
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Industrial economics and applications
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CFC = direct plant costs + indirect plant costs
CFC = x (k x IEC)
IEC : equipment installation costCFC : fixed-capital cost of plant
k : Lang factor(fluctuates according to the process type)
: indirect costs (site development and studies)
- IEC = f(Cn) Cn : design capacity (tpy)
Capital cost
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Industrial economics and applications
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Operating cost
General formula:C0 = . L + . E + . CFC
Parameters of the main
explanatory variables
L : labour
E : energy
M : maintenance
Coefficients representing
the secondary expenditure
: (other fixed costs)
: (other utilities)
: (proportional of CFC)
Each basic variable (L, E) is estimated:
- by standard ratio consumption (physical units)
- combined with the standard prices units
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Industrial economics and applications
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Gross production cost : CPB = depreciation + C0= CFC / d + C0
with d = 20 years : life time of the plant
Net production cost :CPN = CPB - Sr
with Sr : revenue from by-product sales
Total production cost of treatment stream
CPT = CPN + Crefus
Total production cost of BMW management stream
CBMW = CPN + Crefus + Ccollection
Plant production cost
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Industrial economics and applications
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Process types
Waste composition and characteristics
Plant design capacity
Number shifts in operating Lenght of life
Level of utilisation
Unit prices of utilities
Residues treatment costs
Plant production cost : explanatory variables
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Biodagradable waste management stream approach
Industrial economics and applications
Simulator software for biodagradable wastemanagement : ECOBIO (Volia-Cemagref)
is based on process analysis and technical and
economic modeling
is applied to the overall system: collection,
transport, treatment (composting, anaerobic
digestion) refuse treatment (incineration, landfill). takes into account the diversity of local authorities
and MSW management organization
Is easily updatable through its databases
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Biodegradable waste management stream approach
Industrial economics and applications
Simulator software
assessing the current situation,
optimizing the biodegradable waste management
system, with or without biowaste collection
simulation of different options for invitation for
tenders
helps decision makers to choose the
biodegradable waste management options
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Biodegradable waste management stream approach
Industrial economics and applications
Definition of simulations scenariosHypothesis: case of 100 000 inhabitants
Household waste : 35300 t/year
Yard waste : 8000 t/year
Scenario 1: mixed waste : collection + composting
Scenario 2 : mixed waste : collection + AD with digestate
composting
Scenario 3 : residual waste collection + stabilization
: biowaste separated collection + composting Scenario 4 : mixed waste collection + anaerobic digestion (60)
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Biodegradable waste management stream approach
Industrial economics and applications
Results on production cost comparison of scenarios
56%
23%21%
100%
56%
31%
18%
105%
59%
25%
32%
115%
56%
25%
31%
113%
0% 0% 0% 0%0% 0% 0% 0%
Collection cost Treatment cost Stabilised residue andrefuse treatment cost
Total cost
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6
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Biodegradable waste management stream approach
Industrial economics and applications
The economic estimation reveals that:
The most expensive treatment combines anaerobic digestionwith digestate composting,
The impact of refuse treatment is important in scenarios 3 and 4,more than 30% of net total cost,
Collection costs represent 55 to 60% of the net total cost,
Treatment costs represent about 20% of the net total cost,
Refuse and stabilisats management represent 20 to 30% of thenet total cost,
The implementation of biowaste kerbside leads to anincrease of about 8% of the collection production cost,
The implementation of biowaste management by kerbsidecollection and composting leads to an increase of about 15% in
the net total cost.
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Biodagradable waste management
Other economic tools
PAYT (Pay as you throw) Sytem
The effectiveness of PAYT schemes in modifying householdbehavior depends on how clear the price signal is for households
PAYT systems leads to a development of home composting
Extended producer Responsibilty
Extended producer responsibility (EPR), when the focus is on
changing producer behaviour
ERP applied on medical waste and phyto waste allows to reducethe dangerosity of waste
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Environmental impacts
and
monetization
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Environmental impacts monetization
Method categories
Monetization
Direct valuation
Directmethod
Marketbased
Indirect method
Revealedpreference
Statedpreference
Indirect
Dose-effectmethod
(IPA)
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Environmental impacts monetization
Main environnemental valuation techniques
Productivity method Human capital approach Defensive expenditures method Damage cost avoided Replacement or repair cost method
Market basedtechniques(damage cost
method)
Travel cost method Hedonic price method
Revealedpreference
(surrogate market orobserved behavior)
Contingent valuation method Choice modelling
Statedpreference
(Willingness to pay)
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Environmental impacts monetization
Main external costs of biological treatment Productivity method Human capital approach Defensive expenditures method Damage cost avoided Replacement or repair cost method
Greenhouseemissions
(preventiveexpenditure method)
Travel cost method Hedonic pricing method
Other emissions
to air
Leachate
(Travel cost method
/ Stated preference )
Choice modelling Choice experiment method Hedonic pricing method
Disamenity
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Life Cycle Assessment is an environmental evaluation
tool which classically evaluates environmental impacts
for a decontextualized situation
Used at regional and national level for the assessment of
plans and programs
Relevant for policy-making perspective at national level
Not entirely satisfactory for plans and projects at regional
scale because of the lack of the consideration of spatial
and temporal information for the environmental
assessment and especially for local impacts.
Environmental impacts monetization
Decontextualized approach
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Life Cycle Assessment
Industrial economics and applications
The environmental emissions considered included greenhouse
gas emissions and other atmospheric (NH3, NOx, VOC) and to
water emissions that contribute to the degradation of human
health, acidification, eutrophisation, soil erosion and pesticide use.
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A lot of literature exits on the external costs
(per unit mass of emissions) associated with
impacts considered of emissions (program
ExternE on energy)
Environmental impacts monetization
Decontextualized approach with damage cost unit
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Environmental impacts monetization
Decontextualized approach with price of WTP
Monetization methodEnvironmental Economics
Stated preferences Revealed preferences
Contingent valuation methodChoice modeling
Choice exepriment
- Environment is broken down into several attributes
- Based on a principle of arbitration
- Relevant when there are several alternatives
- Obtaining of a WTP
Choice Experiment
the most adapted for a
coupling with LCA
A posteriori
Not relevant to manage the
multiplicity of impacts
evaluated by LCA
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Environmental impacts monetization
Decontextualized approach with price of WTP
Environmental evaluation : LCA
Potential environmental
impacts quantification
Choice of a monetization method :
Choice experiment
Adaptation of this method for
environmental impacts
Implementation and obtaining of a
monetary value per each impact unit
Monetized
environmental impacts
An example of coupling between LCA and Choice experiment: towards CBA
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Environmental damage costs of air pollution is estimated byassigning economic values to the physical impacts, caused by
exposure to elevated concentrations of pollutants, which in
turn resulted from dispersion, transformation of pollutants
being emitted to the air by a given source
Overall, two key figures are essential for quantifying the
variable externalities of a given pollutant:
Emission factors (measured in kg per ton of waste)
Unit costs (measured in EURO per kg emission)
In principle, these factors and knowledge about the quantity ofwaste can form the basis for quantification of the variable
external costs that a ton of waste will account for. This is called
the impact pathway methodology.
Environmental impacts monetization
Contextualized approach: Impact Pathway methodology
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Environmental impacts monetization
Contextualized approach or local approach
The impact pathway
methodology traces the
passage of a pollutant
from the place where it isemitted to the final impact
on the receptors that are
affected by it.
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The dose response function (DRF) relates thequantity of a pollutant that affects a receptor (e.g.
population) to the physical impact on this receptor. For
the classical air pollutants (NOx, SO2, O3,PM), DRFs
are typically used as kind of concentration responsefunctions (CRF). These relations are a central element
of the impact pathway analysis.
However, there are large uncertainties in the behavior
of the DRF in particular for low doses. The functionscan be linear through the origin or linear with
threshold characterizing a zero effect as well as
nonlinear through the origin.
Environmental impacts monetization
Contextualized approach : Impact Pathway Analysis
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E i l b fi i i
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Biogas : economic valuation varies between countries
depending on the share of nuclear in the energy mix
Compost : economic valuation varies regionally
depending the competition between organic
amendments (manure)
Nonrenewable natural resources: Harthwick rule =
total substitutability between manufactured capital
and natural capital
investing an amount equal in value to the market
value of the depleted fraction of the resource
Environmental benefits monetization
Contextualized approach for composting
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The question of the study boundaries: should one
include or exclude the effects of the compost
incorporation into the soil?
Benefits of adding organic matter on soil stability
Negative impacts with the gaseous emission of CO2
and ETM
These effects are under the influence of climate and
soil pedology Works in progress of National Institute of Agronomic
Research (INRA) (in National research Project
CleanWast)
Environmental benefits monetization
Contextualized approach for composting
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The question of choosing the appropriate monetizationmethod
The importance of selecting assumptions for the
implementation of these valuation techniques
An assessment always partial of environmental benefits
Many studies on recycling and on the comparison
Incineration / landfill
We must have a method of monetization by type of
impact or a method which deals with all impacts?
Environmental impacts monetization
Limits of applying methods
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Costs for municipal waste management in the EuropeanUnion , 2002, Eunomia research &consulting
Guide to Cost Benefit Analysis of investment projects,
2008, European Commission
Assessment of the options to improve the management
of biowaste in the European Union, 2010, Eunomia
research &consulting
Environmental impacts monetization
Some references
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Conclusion
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Conclusion
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Developing simulation tools of economic
management scenarios
Improving the assessment of local
environmental impacts at local scale
Improving the application of monetization
economic methods of environmentalimpacts in waste management context,especially in biological way
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Conclusion
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Coupling analyzes of Life CycleAssessment (LCA) and methods ofmonetization in the Cost-Benefit Analysis(CBA)
Making work together the scientists fromvarious disciplines: chemistry, economics,
LCA experts, process engineering
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i t f
Pour mieux
affirmer
ses missions,le Cemagref
devient Irstea
Thank you
foryour attention