Waste-to-Energy and recycling: The role of plant ownership and waste mobility.

This paper proposes a stylized two-region model to study the joint effect of waste mobility and WtE plant's ownership on waste disposal choices, welfare and environmental quality. The aggregate level of recycling emerging from the mobility/private ownership scenario is excessive relative to the first best. By contrast, under waste autarky, the institutional configuration of the WtE plant turns out to be neutral and the resulting level of recycling is generally suboptimal.