Using potential energy in wastes is the first step toward the society based on recycling and can be a quick intermediate procedure against global warming. Energy system is essential not only for our production and consumption but also for recycling materials. Therefore, restructuring it is one of the key issues to create a sustainable environment. We aimed to evaluate a policy introducing the tax on emission of greenhouse gas (GHG) and the subsidy for industries producing energy from wastes. Burnable wastes consist mainly of carbon-neutral biomass, but methane gas is emitted in the air from wastes left out in the open, which has 21 times as high greenhouse effect as carbon dioxide. Adequate treatment of waste is expected to reduce the emission of methane, and contribute to many other effects such as saving energy resources, material recycle and the creation of employment. A socioeconomic model simulation was examined as prior evaluation of policy measures. The model is based on I/O model and considered the flow of wastes and energy, and new industries which produce energy from wastes and the economic policies of the tax and the subsidy were introduced in the model. On the restriction of total emission of GHG, GDP was maximized as objective function. The effect of the policies on reducing GHG emission and promoting new industries are examined and the optimum tax rate is considered.. JEL classification: Q42, Q48