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End of Life Decommissioning and Recycling of Solar Panels in the United States. A Real Options Analysis


Chesney, Marc; Vargas, Carlos (2021). End of Life Decommissioning and Recycling of Solar Panels in the United States. A Real Options Analysis. Journal of Sustainable Finance & Investment, 11(1):82-102.

Abstract

Hundreds of thousands of tons of solar panel waste are estimated to be produced yearly in the United States from the year 2035 on, most of which could be recycled. This paper estimates the amount of scrap material to be produced from solar panels decommissioning and determines the optimal date and location to establish either centralized or regional recycling centers to better deal with this issue from the perspective of the U.S. government as potential investor. Solar panel recycling could become a multi-billion USD industry, however, the main challenge today is to keep its overall costs down while allowing for the majority of panels to be recycled. Real Options Analysis is deployed to assess the optimal solution to face this challenge. Determining the optimal location of those facilities is a novel approach. Further applications of the model proposed in this work could scale up this analysis at an international level.

Abstract

Hundreds of thousands of tons of solar panel waste are estimated to be produced yearly in the United States from the year 2035 on, most of which could be recycled. This paper estimates the amount of scrap material to be produced from solar panels decommissioning and determines the optimal date and location to establish either centralized or regional recycling centers to better deal with this issue from the perspective of the U.S. government as potential investor. Solar panel recycling could become a multi-billion USD industry, however, the main challenge today is to keep its overall costs down while allowing for the majority of panels to be recycled. Real Options Analysis is deployed to assess the optimal solution to face this challenge. Determining the optimal location of those facilities is a novel approach. Further applications of the model proposed in this work could scale up this analysis at an international level.

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21 citations in Scopus®
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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Business and International Management
Social Sciences & Humanities > Finance
Social Sciences & Humanities > Economics, Econometrics and Finance (miscellaneous)
Scope:Discipline-based scholarship (basic research)
Language:English
Date:January 2021
Deposited On:08 Nov 2021 12:28
Last Modified:25 Jun 2024 01:47
Publisher:Taylor & Francis
ISSN:2043-0795
OA Status:Green
Publisher DOI:https://doi.org/10.1080/20430795.2019.1700723
Official URL:https://www.tandfonline.com/doi/abs/10.1080/20430795.2019.1700723
Related URLs:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3318117 (Organisation)
Other Identification Number:merlin-id:18848
  • Content: Accepted Version