The challenges of tourism to waste-to-energy public-private partnerships

The use of municipal solid waste (MSW) for energy generation is an important paradigm shift in municipal solid waste management (MSWM). The concept of waste-to-energy (WTE) is consistent with the basic principles of waste hierarchy set by the European Commission in environmental agenda. WTE became an effective response in small-island which usually rely on tourism for economic development. Many WTE power plants have been developed through PPP arrangements; however, little attention has been paid in the academic literature to the impact of tourism to WTE utilities performance. This paper analyzes the influence of tourism to a waste-to-energy public-private partnership (WTE PPP) through the case study of Mallorca, an internationally renowned summer seaside destination. The analysis of Mallorca's experience shows that tourism strongly influences management costs of WTE facilities and PPP contracts still needs to adapt the tariff system to promote better performance of the public service.