Production of refuse derived fuel (RDF) is a viable approach to material and energy recovery from municipal solid waste. However, in order to find a market for such a product a high quality level is required so that it can be effectively utilized in actual combustion systems. In the first part of this article the problem of producing a RDF having a high heating value (>4000 kcal/kg LHV) has been examined from a technical viewpoint. Economic feasibility and financial risk of RDF production plants have been instead evaluated in this second part article on the basis of the net present value index over a capacity range of 25-200 t/h comparing either single RDF production plants and facilities integrating also compost production and/or electricity generation. Only plants with direct utilization of produced RDF for energy generation have been found to be economically feasible, under the conservative economic assumptions made, with optimal capacity of about 150, or 100 t/h in case a composting line is added. (C) 2002 Elsevier Science Ltd. All rights reserved.