Abstract

This paper proposes a pricing model to ensure the budget balance of a company responsible for collecting and treating solid household waste in a city. The model used is of the Principal-Agent type which considers two actors at play, namely the leader (the service provider company) and the follower (the households and establishments that are the beneficiaries of the waste collection service). The model is a constrained bi-level optimization program. The model was applied in the case of Benin to the Grand Nokoué waste management and healthiness Company (SGDS-GN) whose intervention area, in the beginning, covers five communes in the southern part of the country. The solving of the optimization program was made with three (03) scenarios: the company spends two (02) times a week for waste collection (scenario 1), the company spends three (03) times a week for waste collection (scenario 2) and the company spends four (04) times a week for waste collection (scenario 3). The simulation results show that scenario 2 with three (03) passages per week appears more optimal for both the company (the operating result is higher) and the beneficiaries of waste collection services (the rate to be paid is lower).

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