Economic, energy, energy-cycle, and CO2-cycle study of producing green fuel by plastic waste

Abstract

This study investigates the intertwined economic, energy, and environmental implications of producing green fuel from plastic waste in China, addressing the urgent problem of escalating plastic pollution and its underutilized energy recovery potential. The core aim is to assess the viability and sustainability of converting plastic waste into fuel by analyzing the full energy cycle and CO₂ emission cycle, thereby determining its alignment with China's carbon neutrality and circular economy goals. Covering the time period from 2010 to 2023, the study employs a life cycle assessment (LCA) model integrated with input-output energy analysis and carbon accounting techniques. The empirical findings reveal that: (1) plastic-to-fuel conversion can reduce CO₂ emissions by up to 45 % compared to conventional fossil fuels; (2) energy return on investment (EROI) remains favorable, ranging between 3.2 and 4.5 depending on process efficiency; (3) the process contributes to a 27 % reduction in landfilled waste; (4) regional disparities in plastic waste availability and collection efficiency significantly affect output viability; and (5) economic analysis indicates a positive net present value (NPV) in over 70 % of modeled provinces under current carbon pricing schemes. The results support the policy implication that integrating plastic-to-fuel pathways within China's waste management and renewable energy strategy can enhance carbon mitigation, resource efficiency, and local energy security.