Bilevel programming methods in waste-to-energy plants' price-setting game

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26210%2F23%3APU148653" target="_blank" >RIV/00216305:26210/23:PU148653 - isvavai.cz</a>

Alternative codes found

RIV/70883521:28140/23:63570599

Result on the web

<a href="https://link.springer.com/article/10.1007/s12351-023-00775-9" target="_blank" >https://link.springer.com/article/10.1007/s12351-023-00775-9</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s12351-023-00775-9" target="_blank" >10.1007/s12351-023-00775-9</a>

Result language

angličtina

Original language name

Bilevel programming methods in waste-to-energy plants' price-setting game

Original language description

This paper deals with the problem of waste treatment pricing in the waste-to-energy (WtE) plants' network. The correct and stable estimate of gate fees should ensure efficient and financially sustainable waste energy recovery. The main contribution is a new price-setting approach, combining bilevel optimization techniques and game theory. The proposed approach dwells on two challenging steps. The first step is to solve the bilevel program, where the WtE plant on the upper level maximizes its income by setting the optimal gate fee, whereas waste producers on the lower level minimize the sum of their waste treatment costs. This optimization problem considers cities' waste production amounts, WtE plants' capacities, and locations. The novel heuristic algorithm, which can handle this bilevel program time-efficiently, is presented. It is based on the reformulations of bilevel problems of highway networks and pricing. The functionality of the heuristic has been validated using artificial waste management network scenarios. The second step is to establish the stable gate fee outcome in the waste management network, where numerous WtE plants are presented. This task is reformulated as a search for the Nash equilibrium in a normal-form game. The best-response dynamics algorithm enables establishing the game's equilibrium with numerous WtE plants and continuous strategy sets. The potential application of the proposed approach is demonstrated in the exemplary problem motivated by the Czech Republic. The found stable gate fee outcome is then used to estimate the optimal capacity of the prepared WtE facility project and ensure its financial viability in the existing waste management network.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

Result was created during the realization of more than one project. More information in the Projects tab.

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Operational Research

ISSN

1109-2858

e-ISSN

1866-1505

Volume of the periodical

23

Issue of the periodical within the volume

2

Country of publishing house

DE - GERMANY

Number of pages

37

Pages from-to

1-37

UT code for WoS article

000983315100001

EID of the result in the Scopus database

2-s2.0-85158886810