COST BENEFIT ANALYSIS OF WASTE TO ENERGY

Cost Benefit Analysis of Waste to Energy

Cost Benefit Analysis of Waste to Energy

Waste Management

In industrialized nations the waste management practices evolved with the 1970's focusing on reducing environmental impacts (Barbara, 2009). This was done by creating controlled landfill sites, establishing waste transfer stations or redirecting waste collection vehicle routes. The 1980's and early 1990's focused on new technological solutions for waste management while the mid 1990's until today, the focus is on resource recovery. In this regard recycling, incineration, composting and bioreactor treatment for energy, nutrient recovery and waste to energy recovery methods are included in MSWM systems (Yusuf, Oyewumi, 2008: 138-144).

To achieve waste management objectives and abide by these policies, model or systems of waste management have evolved. These decision support models involve the use of methods and tools such as cost benefit analysis (CBA), life cycle analysis LCA and integrated waste management. Waste management systems based on CBA usually convert all economic, social and environmental impacts into monetary terms. In this case economic impacts are readily obtained by the cost of building waste management facilities and the revenues generated from such facilities. Social and environmental impacts are estimated by the cost of abating pollution from a waste treatment facility and or how much the public is willing to pay for an environmental improvement (Imam, Mohammed, 2008: 468-472). These estimations go into deciding which waste management option offers the best benefit and has been adapted in the Irish waste management plans. Maximizing economic efficiency is usually the dominant factor in CBA at the costs of environmental and social criteria.

Nigerian Case

Waste generation scenario in Nigeria has been of great concern both globally and locally. Of the different categories of wastes being generated, solid wastes had posed a hydra-headed problem beyond the cope of various solid waste management systems in Nigeria, as the streets experience continual presence of solid waste from commercial activities. Various researchers have undertaken to study solid waste generation pattern in Nigeria, but most of the studies are usually a case study of a particular state or locality in Nigeria; and it seems the awareness about solid waste generation in several other cities are obscured (Dauda, Osita, 2003, pp. 20-23).

Energy is the mainstay of Nigeria's economic growth and development. It plays a significant role in the nation's international diplomacy and it serves as a tradable commodity for earning the national income, which is used to support government development programmes. It also serves as an input into the production of goods and services in the nation's industry, transport, agriculture, health and education sectors, as well as an instrument for politics, security and diplomacy.

Energy, and in particular, oil and gas, has continued to contribute over 70% of Nigeria's Federal revenue. National developmental programmes, and security, depend largely on these revenue earnings. Energy, especially crude oil, has over the past five years contributed an average of about 25% to Nigeria's Gross Domestic Product (GDP), representing the highest contributor after crop ...