Abstract

A linear programming model REAP (Regional Environmental strategy Analysis Program) has been developed for the analysis of the consequences of a CO2 tax for petrochemical products such as plastics (CO2, carbon dioxide, is the most important greenhouse gas). Special attention has been paid to the impacts on waste management. The results suggest that a 10,000 Y t(-1) CO2 tax would result in a significant reduction of CO2 emissions in the petrochemical life cycle, ranging from 40 Mt in 2015 to 70 Mt CO2 in later decades (more than 50% emission reduction). Waste quantities will be reduced simultaneously. The CO2 tax results in an 18% reduction of plastic waste weight in 2015 (3 Mt waste). Lower tax levels that may be politically more acceptable would result in proportionally lower environmental benefits. CO2 benefits and waste benefits of a CO2 tax are of equal importance in policy terms. Apart from changes in waste volume, CO2 taxes would affect the cost-effectiveness of waste handling technologies. Energy recovery in industrial kilns may replace conventional waste incineration. Recycling constitutes half of the total waste treatment. Given these results, current investments in new incineration capacity may suffer from insufficient waste availability during the next two decades in case CO2 taxes are introduced. A third effect of a CO2 tax is a significant increase of waste transportation. The results show that this increase is concentrated in the central part of Honshu (Kinki, Chubu & Kanto). Such transportation can result in new local environmental impacts that should be analysed in more detail. Given the strong impact of CO2 taxes on waste quantities and waste treatment it is recommended to co-ordinate CO2 policies and solid waste policies.

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