This study aims to evaluate various waste-to-energy conversion scenarios in terms of their potential to reduce greenhouse gas (GHG) emissions and improve sustainability based on economic and environmental outcomes. To achieve this, a comprehensive waste management model was developed using the system dynamics approach in the Vensim software to predict waste generation and composition and compare pyrolysis, incineration, gasification, and sanitary landfill scenarios with the baseline scenario over 25 years (2025–2050). The analysis of different waste management scenarios highlights the superior performance of pyrolysis in terms of energy recovery, economic profit, GHG emissions reduction, environmental outcomes, and long-term sustainability. Results show that the pyrolysis scenario generates the highest electricity, with a cumulative net electricity output of 10,469 GWh. Although pyrolysis has GHG emissions due to energy consumption and direct process emissions, it results in the largest net reduction in GHG emissions, primarily due to avoided emissions from increased electricity generation, leading to a 346% reduction compared to the baseline scenario. Furthermore, the pyrolysis scenario demonstrates the highest economic profit at 354 million USD and the highest sustainability index (SI) at 499 million USD. The cumulative SI from 2025 to 2050 shows a 503% increase compared to the business-as-usual scenario, highlighting its superior sustainability performance. This study highlights the importance of strategic waste-to-energy planning in reducing GHG emissions and promoting sustainability. It also offers valuable insights for policymakers and researchers, supporting the development of sustainable waste management strategies and effective efforts for climate change mitigation.