Cost-benefit analysis of a circular economy project: a study on a recycling system for end-of-life tyres

End-of-life vehicles (ELV) represent a relevant waste source in Europe, even if ELV recycling is a priority of the European Union waste legislation and Environment Action Programmes (EAPs). End-of-Life Tires (ELTs) constitute a relevant portion of ELV waste. Textile fibre, which is a relevant portion of the ELT material, is considered as a special waste (European Waste Catalogue - EWC code 19.12.08). The main problem related to textile fibre is its contamination with rubber which does not allow to obtain a pure product economically and qualitatively useable. The aim of this paper is to illustrate an innovative technology for ELT fibre's recycling, which allows to transform textile fibre into a useful secondary raw material for different applications. In particular, the use of ELT fibre as additive for bituminous conglomerates has been investigated. The different processes have been analysed from an environmental point of view, applying the Life Cycle Assessment methodology. It came up there is an impact reduction in case the ELT fibre is reused as additive for bituminous conglomerates, instead of disposing it (through incineration). Moreover, the financial and economic sustainability of the related technological process has been evaluated to check whether the process is sustainable in the long term. Starting from the results of the Life Cycle Assessment, economic performance indicators have been calculated, by applying the European Commission methodology for cost-benefit analysis. According to the present cost-benefit analysis, in the medium and long term the system is financially viable, and the high economic profitability makes the process economically sustainable. Furthermore, a sensitivity analysis as well as a risk assessment have been carried out in order to identify critical variables, evaluate risks and define risk mitigation measures. According to the sensitivity analysis performed, the project is not highly risky since even in the worst scenario the possible loss is moderate. Based on the results of this analysis, it can be concluded that this ELT fibre's recycling system can be replicated across Europe, conveniently fostered by national policies (such as subsidies, value added tax etc.). (C) 2019 Elsevier Ltd. All rights reserved.