A Coordinated Multi-Product Market for Organic Waste Management

Keywords

markets, products, waste, technologies, efficiency

Start Date

25-6-2018 9:00 AM

End Date

25-6-2018 10:20 AM

Abstract

Organic waste represents an environmental, economic and social stressor. We propose a coordinated market framework to exchange waste streams and transform them into valuable products. Our framework is motivated and designed after coordinated electricity markets that currently exist in operation and that have led to high economic efficiency and technology innovation. In the proposed framework, generators and consumers of waste and derived products as well as technology and transportation providers bid into the market to offer services. Prices for waste and derived products are obtained by solving a market clearing problem that balances products across a supply chain network that connects all market participants. We prove that the derived prices are efficient, in the sense that they cover marginal costs of the market players. This framework allows the incorporation of regulatory drivers as well as environmental and social constraints to facilitate a waste management strategy. Finally, we present a case study to demonstrate the capabilities and scope of the proposed framework.

Stream and Session

Stream C: Integrated Social, Economic, Ecological, and Infrastructural Modeling

C2: Application of Decision Support Tools for Integrated Water Resources Management

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Jun 25th, 9:00 AM Jun 25th, 10:20 AM

A Coordinated Multi-Product Market for Organic Waste Management

Organic waste represents an environmental, economic and social stressor. We propose a coordinated market framework to exchange waste streams and transform them into valuable products. Our framework is motivated and designed after coordinated electricity markets that currently exist in operation and that have led to high economic efficiency and technology innovation. In the proposed framework, generators and consumers of waste and derived products as well as technology and transportation providers bid into the market to offer services. Prices for waste and derived products are obtained by solving a market clearing problem that balances products across a supply chain network that connects all market participants. We prove that the derived prices are efficient, in the sense that they cover marginal costs of the market players. This framework allows the incorporation of regulatory drivers as well as environmental and social constraints to facilitate a waste management strategy. Finally, we present a case study to demonstrate the capabilities and scope of the proposed framework.