Abstract
Waste mismanagement has caused environmental pollution, while there is an opportunity to reduce this environmental degradation by converting waste into value-added products. These value-added products from waste have mutual effects from the perspective of water-energy-waste-carbon nexus and a cooperation approach could lead to better management. We develop a Stackelberg game model, where the municipality as a leader intervenes in the waste supply chain with penalties and subsidies to control environmental pollution, water consumption, and energy consumption. The collector collects waste from two channels municipal waste bins and waste purchasing. Buyable waste and recyclable waste from bins are sold to applicants. The collector sells the rest of the bins' waste to electricity and biofuel production (EB) plant and compost plant. A risk-aversion model has been considered for the EB due to the uncertainty of the amount of recyclable waste, and the model has been verified based on Tehran City.
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