Cost-benefit Model Research Articles

Food waste disposal and utilization in the United States: A spatial cost benefit analysis

Food waste is generated from residential, commercial, institutional, and industrial sources, and is conventionally disposed of in landfills. To nurture the development of a circular economy for food waste, its valorization by technologies that create fuels, power, or products is being investigated. These technologies offer the potential to dispose food waste while generating sustainable resources. While some literature exists on the economics of food waste utilization options, no existing study simultaneously characterizes different facility scales and locations across many food waste pathways. This study develops a series of cost-benefit models that depict the economic favorability of several food waste management pathways by state: landfilling, composting, anaerobic digestion, incineration, and biofuels production via hydrothermal liquefaction. Economic favorability primarily depends on the local tipping (gate) fee charged by the facility; however, additional revenue streams realized from the sale of biofuels, biopower, or bioproducts can reduce this dependence. Local market prices for biofuels, biopower, or bioproducts generated from food waste determine the profitability of technologies that generate these products. The magnitude of these revenue streams depends on local market factors and the economies of scale leveraged for large facilities. Significant spatial variability in these results exists across the United States, driven by the differences in tipping fees, O&M costs (e.g., labor rates), and product market prices. This study supports decision-making by industry, state, and local governments, as well as furthering research in the area of sustainable utilization of food waste.

On the use of techno‐economic evaluation on typical integrated energy technologies matching different companies

This paper mainly establishes the cost-benefit model for techno-economic evaluation on typical integrated energy technologies matching different companies including photovoltaic, electric heat storage, ground source heat pump etc. The techno-economic evaluation indicators such as net present value, investment payback period, and financial internal rate of return are considered. The proposed evaluation method is applied to separately analyze two real companies such as poultry and wood industry to conduct integrated energy technology matching, and then to analyze whether the configuration plan is feasible. The energy consumption and nature of the two enterprises are different, and the matched integrated energy technologies and the corresponding magnitudes are different. The results of the real case analyses show that the use of integrated energy technology will improve energy efficiency and reduce the energy costs.

Persistent inequality in economically optimal climate policies

Benefit-cost analyses of climate policies by integrated assessment models have generated conflicting assessments. Two critical issues affecting social welfare are regional heterogeneity and inequality. These have only partly been accounted for in existing frameworks. Here, we present a benefit-cost model with more than 50 regions, calibrated upon emissions and mitigation cost data from detailed-process IAMs, and featuring country-level economic damages. We compare countries’ self-interested and cooperative behaviour under a range of assumptions about socioeconomic development, climate impacts, and preferences over time and inequality. Results indicate that without international cooperation, global temperature rises, though less than in commonly-used reference scenarios. Cooperation stabilizes temperature within the Paris goals (1.80∘C [1.53∘C–2.31∘C] in 2100). Nevertheless, economic inequality persists: the ratio between top and bottom income deciles is 117% higher than without climate change impacts, even for economically optimal pathways.

Role of C11-FDG dual-tracer PET-CT scan in metastatic screening of hepatocellular carcinoma-a cost-effectiveness analysis.

We aimed to identify predictive factors for positron emission tomography (PET)-detected hepatocellular carcinoma (HCC) metastasis and a cost-effective approach to preoperative PET-computed tomography (CT) for detecting metastasis. Clinicopathological and survival data of HCC patients having PET-CT with 18F-fludeoxyglucose (FDG) and 11C-acetate (ACT) following contrast-enhanced CT/magnetic resonance imaging (MRI) for preoperative tumor staging were reviewed. Binary logistic regression was performed to identify predictive factors for PET-detected metastasis. A cost-benefit analysis model was built for the incurred costs and the impact of PET-CT findings on treatment strategy was studied. Totally 152 patients were analyzed. Dual-tracer PET-CT detected metastasis in 17 patients (11%). By multivariate analysis, alpha-fetoprotein (AFP) ≥400 ng/mL [relative risk (RR): 4.30, 95% confidence interval (CI): 1.41-13.15, P=0.011] and bilobar disease (RR: 3.94, 95% CI: 1.24-12.52, P=0.014) were independent predictive factors for PET-detected metastasis. PET-CT findings altered the treatment strategy for 12 patients (7.9%); three partial hepatectomies, eight episodes of transarterial chemoembolization (TACE) and one episode of ablation were avoided, with an estimated cost-saving of US $91,000, $150,000 and $10,600 respectively. Had the PET-CT been performed only for patients with AFP ≥400 ng/mL or bilobar disease (n=74), metastasis would have been confirmed in 14 patients (18.9%), and the cost-saving per patient was estimated at US $1,070. Dual-tracer PET-CT is cost-effective and useful for preoperative HCC staging in patients with AFP ≥400 ng/mL or bilobar disease. Its routine use in preoperative workup for all HCC patients is not recommended. Unilobar disease with AFP <400 ng/mL can achieve good negative predictive value for PET-detected metastasis. Screening patients with either factor can avoid unnecessary procedures and is thus cost-effective for preoperative HCC workup.

Improving food allergen management in food manufacturing: An incentive-based approach

The improvement of food allergen management among food manufacturers has been encumbered by a lack of behavioural incentives to adopt good practices (e.g. multiple verifications and adoption of advanced technologies etc.). This study aims to tackle this challenge by proposing an incentive-based approach. We develop this approach by compiling, through a scoping literature review, a comprehensive list of operational errors in food allergen management for food manufacturers; identifying incentives with a behavioural cost‒benefit approach; and integrating machine learning and human learning into a coherent framework for sustaining behavioural incentives. Such a synthesised approach could help to develop advanced food traceability technologies, more effective regulations and better food safety culture for improving food allergen management. • Incentivising the improvement of food allergen management. • A systems approach to improving food allergen management. • Integrating machine learning and human learning for food allergen management. • A behavioural cost-benefit model for food allergen management proposed. • Operational errors in food allergen management identified.

Edge intelligence‐enabled supply chain financial model based on Business‐to‐Business e‐business platforms

SummaryBased on the analysis of the existing traditional supply chain financial model, this article proposes an edge intelligence‐enabled supply chain financial model based on Business‐to‐Business (B2B) platforms, combines the operation mechanism of the model and the quantitative analysis thinking of the traditional supply chain financing. This article uses the model to construct and evaluates the cost–benefit model of dealers, manufacturers, and B2B e‐business platforms in the perspective of the supply chain finance for B2B platforms. In order to further explore the operation strategy of supply chain member enterprises, this article also explores the selection of financing objects of B2B platforms, the optimization of financing cost rate formulated by the loan amount of financing enterprises, and the optimization of product order quantity. Numerical analysis shows that the proposed model can directly reflect the changing trend of the relevant parameters of B2B platforms' supply chain financial model and provide suggestions for the cooperation mechanism between supply chain and commercial banks.

On the optimality of 2\xb0C targets and a decomposition of uncertainty

Determining international climate mitigation response strategies is a complex task. Integrated Assessment Models support this process by analysing the interplay of the most relevant factors, including socio-economic developments, climate system uncertainty, damage estimates, mitigation costs and discount rates. Here, we develop a meta-model that disentangles the uncertainties of these factors using full literature ranges. This model allows comparing insights of the cost-minimising and cost-benefit modelling communities. Typically, mitigation scenarios focus on minimum-cost pathways achieving the Paris Agreement without accounting for damages; our analysis shows doing so could double the initial carbon price. In a full cost-benefit setting, we show that the optimal temperature target does not exceed 2.5 °C when considering medium damages and low discount rates, even with high mitigation costs. With low mitigation costs, optimal temperature change drops to 1.5 °C or less. The most important factor determining the optimal temperature is the damage function, accounting for 50% of the uncertainty.

Mobile Health Apps and Health Management Behaviors: Cost-Benefit Modeling Analysis.

BackgroundRising criticism about the risks associated with the use of mobile health apps necessitates a critical perspective to assess the use of these apps. A cost-benefit approach involving several moderating factors can be used to detect technology effects and individual-level push and pull factors related to health attitudes, lifestyle, and health management behaviors.ObjectiveWe introduce a cost-benefit perspective to examine how health attitudes related to mobile health apps and health situational factors (health crises, health changes, and hospitalization) affect the likelihood of adopting lifestyle and health management behaviors among app users.MethodsThe analysis is based on individuals’ reported use of mobile health apps. The sample included 1495 US adults aged over 18 years who were contacted by landline or cellphone. A total of 50.96% (762/1495) of the participants were women. A set of logistic regression models was used to predict lifestyle and health management behaviors among users considering variations in the extent of use, health attitudes, health situation, and socioeconomic characteristics.ResultsThe findings indicate that the proposed models were reasonably adequate. In all, 88.76% (1327/1495) of the cases were correctly classified regarding lifestyle behaviors, but only 71.97% (1076/1495) of the cases were correctly classified regarding health management behaviors. Although a large percentage of individuals changed their attitudes following the use of mobile health apps, only a small proportion adopted health management behaviors. The use of mobile health apps affected up to 67.95% (1016/1495) of the users for consultation and 71.97% (1076/1495) of the users for decision making. The model was effective for 88.76% (1327/1495) of the cases regarding lifestyle behaviors but only 71.97% (1076/1495) regarding health management behaviors. The moderating effect of regular use of mobile health apps significantly affects lifestyle (Wald=61.795; B=2.099; P<.005) but not health management behaviors (Wald=12.532; B=0.513; P=.01). These results collectively indicate that the use of mobile health apps for health management is partially effective.ConclusionsThe use of mobile health apps is a main route to instigate the process of health empowerment and shape health attitudes. However, an accurate assessment of the effectiveness of mobile health apps necessitates distinguishing between lifestyle and health management behaviors and adopting a cost-benefit approach because individuals facing health concerns, such as a chronic disease, health emergency, health crisis, or health change, consider their affordances and situational effects. These moderators generate a push and pull framework in the decision-making process that balances the costs and benefits of use.

Cost-benefit model for multi-generational high-technology products to compare sequential innovation strategy with quality strategy.

In the rapidly changing high-tech industry, firms that produce multi-generational products struggle to consistently introduce new products that are superior in innovativeness. However, developing innovative products in a short time sequence period is likely to cause quality problems. Therefore, considering time and resource constraints, two kinds of strategies are commonly employed: sequential innovation strategy, sequentially introducing a new generation of technology product at every launch interval, ensuring timely innovativeness but with relatively uncertain quality, or quality strategy, intermittently introducing a new generation of products, together with a derivative model between generations to enhance the quality. In this study, we propose a framework for a cost–benefit analysis that compares these two strategies by considering competition between firms within a generation as well as that within a firm across multiple generations (i.e., cannibalization) throughout the launch cycle of high-tech products. We apply our proposed framework to the smartphone market and conduct a sensitivity analysis. The results are expected to contribute to strategic decision-making related to the introduction of multi-generational technology products.

Cost-Benefit Analysis of Single versus Repeated Use of Single-Use Devices in Cataract Surgery.

PurposeTo estimate the net cost effect associated with the real-world practice of repeated use of designated single-use medical devices (SUDs) versus their proper single use in cataract surgery in Greece.DesignA cost-benefit analysis model was constructed in the form of a decision tree.MethodsA digital expert panel was assembled in order to estimate the probabilities of intraoperative and postoperative complications associated with single and repeated use of SUDs. Unit costs for the management of each complication were obtained from the official Greek bulletins. A Monte Carlo-type sensitivity analysis was performed to assess the robustness of the results.ResultsBased on the probabilities of complications attained from the expert panel, repeated use of SUDs is associated with a higher chance of complications compared to single use, which results in higher cost of complication management. Under the healthcare sector perspective, the total expected cost per cataract surgery is 1,403.98€ (1,244.20€ the initial cost of cataract surgery plus 159.78€ the cost of adverse events) in the case of single use, while for repeated use the total cost is 1,486.29€ (1,146.86€ + 339.43€, respectively) and, thus, repeated use of SUDs in cataract surgery results in 82.31€ higher expected cost per patient compared to their single use. Moreover, the societal perspective analysis indicated even higher additional costs in the case of SUD reuse (108.24€).ConclusionRepeated use of SUDs in cataract surgery is not appropriate, it jeopardizes patient safety and carries a legal liability for the reuser. The present study, which is the first to attach a monetary value to the common yet questionable practice of SUD reuse, shows that it is not cost beneficial. Therefore, it is expected that the results will have implications in policy formulations to improve the delivery of cataract healthcare.

Economic assessment of African horse sickness vaccine impact.

African horse sickness (AHS) is endemic in sub-Saharan Africa posing a threat to equine populations in non-endemic regions. Available vaccine technologies have limitations, creating barriers to horse movement, AHS control and, in non-endemic areas or countries, rapid elimination of virus after incursion. The literature lacks an economic assessment of the benefits of bringing a new, more effective AHS vaccine to market. The study assesses the economic impact of AHS and tests the hypothesis that investment in a safer, more effective AHS vaccine would give an economic return. Cost-benefit analysis. Primary and secondary data were collected to populate the cost-benefit analysis model. A literature review was followed by a questionnaire survey and interviews to gather primary data. At-risk populations were defined and qualitative assessment completed to narrow the target populations for quantitative assessment. A deterministic cost-benefit model was developed in Excel and different scenarios tested. Break-even and sensitivity analysis were conducted on key parameters. The economic impact of AHS was estimated to be US$95 million per annum, and this was mainly in endemic regions with domestic equine industries and involved in international trade. Investment required to bring a new AHS vaccine to market was estimated to be up to US$3.5 million, which was very small relative to the benefits estimated in this study. The economic return on investment in bringing a new AHS vaccine to market was predicted to be positive and the analysis demonstrates this result was robust. Data for the analysis were scarce, requiring expert opinion and extrapolation by the authors. Sensitivity analysis with the deterministic modelling structure indicated there was no justification for stochastic modelling, given the robustness of the return on investment. The analysis predicts a strong and robust economic return on the investment in bringing a new AHS vaccine to market. Main economic beneficiaries would be the high value horse sectors, specifically the equine industries in Republic of South Africa (RSA) and in non-endemic countries. In addition, major benefits would be captured in poor communities in sub-Saharan Africa where working equids are of high economic and social importance.

Farmer Perceptions and Economic Performance of Cocoa Agroforestry Shade Levels in Ghana

ABSTRACT Improving productivity of cocoa farms while ensuring forests sustainability through cocoa agroforestry is increasingly gaining the attention of policy makers. Using data from cocoa farmers in rural areas of Southern Ghana, the present study analyzes farmer perceptions on economic and ecological benefits of cocoa agroforestry shade levels with non-parametric tests, and economic performance of cocoa agroforestry shade levels with a cost-benefit modeling approach. The results from the study show that apart from market forces, farmers’ ecological perceptions play a crucial role in the establishment of agroforestry shade levels. There is also evidence to suggest that the medium shade cocoa agroforestry has a higher economic performance. Policies that promote awareness creation and increase knowledge on cocoa agroforestry shade levels are essential ingredients for forest sustainability in sub-Saharan Africa.

Drinking Water Criteria for Arsenic in High-Income, Low-Dose Countries: The Effect of Legislation on Public Health

Due to the potential health risks at very low concentrations, the criterion for arsenic in drinking water has been debated. High-income, low-dose countries are uniquely positioned to follow WHO's recommendation of keeping concentrations "as low as reasonably possible." In this policy analysis, 47646 arsenic analyses from Denmark are used to follow the effect of lowering the national criterion from 50 to 5 μg/L. The first 3 years (2002-2004) following the criterion change, 106 waterworks were identified as noncompliant. An additional 64 waterworks were identified as noncompliant in the next 12 years (2005-2016). Of the 106 waterworks initially (2002-2004) aware of the violation, an average concentration drop from 6 to 3 μg/L was observed during a 6 year period following a lag time of 1 year. After this point, no further improvements were observed. Thirteen years after regulation was imposed, 25 of 170 waterworks were still in violation. The results suggest that legislation alone is insufficient to ensure better drinking water quality at some waterworks and that stakeholders' drivers and barriers to change also play an important role. In an exploration of five legislation scenarios, this study showed that a criterion of 1 μg/L would require action by more than 500 Danish waterworks, with treatment costs from 0.06 to 0.70 €/m3. These scenarios illustrate that it can be technically feasible and affordable to lower the arsenic criterion below 5 μg/L in low-dose, high-income countries. However, more information is needed to apply a cost-benefit model, and comparative studies from other counties are warranted.

Information Rate in Humans during Visuomotor Tracking.

Previous investigations concluded that the human brain’s information processing rate remains fundamentally constant, irrespective of task demands. However, their conclusion rested in analyses of simple discrete-choice tasks. The present contribution recasts the question of human information rate within the context of visuomotor tasks, which provides a more ecologically relevant arena, albeit a more complex one. We argue that, while predictable aspects of inputs can be encoded virtually free of charge, real-time information transfer should be identified with the processing of surprises. We formalise this intuition by deriving from first principles a decomposition of the total information shared by inputs and outputs into a feedforward, predictive component and a feedback, error-correcting component. We find that the information measured by the feedback component, a proxy for the brain’s information processing rate, scales with the difficulty of the task at hand, in agreement with cost-benefit models of cognitive effort.

Application of a cost-benefit model to evaluate the investment viability of the small-scale cogeneration systems in the Portuguese context

Increasingly, modern society is dependent on energy to thrive. Remarkable attention is being drawn to high energy-efficient conversion systems such as cogeneration. World energy sustainability depends on the rational use of energy, fulfilling the demands without compromising the future of energy supply. The market trends foresee the use of decentralized production and the increasing replacement of conventional systems by small-scale cogeneration units as solutions to meet the energy needs of the building sector. Analysing the influence of the variables that determine the economic viability of decentralized energy production systems has become more important given the scenario of energy dependence and high energy costs for the final consumer. A cost-benefit model was developed and presented to identify the potential of small commercial scale cogeneration systems in the Portuguese building sector, based on cost-benefit analysis methodology. Five case-scenarios were analysed based on commercial models, using different technologies such as internal combustion engines, gas turbines and Stirling engines. A positive value of CBA analysis was obtained for all the tested cases, however, the use of classic economic evaluation criteria such as the net present value, internal rate of return and payback period results led to different investment decisions. The model also highlights the influence of energy prices in the economic viability of these energy power plants. The inclusion of subsidized tariffs for efficient energy production is the most contributing aspect in the analysis of the economic viability of small-scale cogeneration systems in the Portuguese building sector. Only in that case, it would be possible for an investor to recover the capital costs of such technology, even if the technical and societal benefits are accounted for.

An approach to cost-benefit analysis by competitive advantages with stochastic data

PurposeThe paper aims to present an approach to cost-benefit analysis with stochastic data. Determining the type and the values of alternative’s factors are probably the most important issue in this approach. Therefore, in the proposed approach, a competitive advantage model was built to measure the values of alternative’s factors. Then, a satisfactory cost-benefit analysis model with random data was proposed to evaluate the alternatives. The cost-benefit analysis of each alternative was carried out to obtain the real and satisfactory cost-benefit of the decision-maker.Design/methodology/approachThis paper is orientationally expressed as a mathematical problem in which the optimization problem needs to analyze the approach. This paper is written based on uncertainty linear optimization. Optimization under uncertainty refers to this branch of optimization where there are uncertainties involved in the data or the model and is popularly known as stochastic optimization problems.FindingsAs was seen in the purpose part, in this paper, an approach is presented to cost-benefit analysis by the use of competitive advantage with stochastic data. In this regards, a stochastic optimization problem to assess competitive advantage is proposed. This optimization problem recognizes the values of alternative’s factors which is the most important step in cost-benefit analysis. An optimization problem is proposed to cost benefit analysis, as well.Practical implicationsTo investigate different aspects of the proposed approach, a case study with random data of 21 economic projects was considered.Originality/valueCost–benefit analysis is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings. Cost–benefit analysis is related to cost-effectiveness analysis. Benefits and costs are expressed in monetary terms and are adjusted for the time value of money; all flows of benefits and costs over time are expressed on a common basis in terms of their net present value, regardless of whether they are incurred at different times. As seen the paper using competitive advantage tries to determine the values of alternative’s factor. As competitive advantage model analyze the advantages and disadvantages of alternatives, this paper by the use of this idea tries to determine the costs and benefits. Two stochastic optimization problems in the middle of this approach are proposed, which assess competitive advantage and cost–benefit analysis, respectively.

Dispositional individual differences in cognitive effort investment: establishing the core construct

BackgroundIndividuals tend to avoid effortful tasks, regardless of whether they are physical or mental in nature. Recent experimental evidence is suggestive of individual differences in the dispositional willingness to invest cognitive effort in goal-directed behavior. The traits need for cognition (NFC) and self-control are related to behavioral measures of cognitive effort discounting and demand avoidance, respectively. Given that these traits are only moderately related, the question arises whether they reflect a common core factor underlying cognitive effort investment. If so, the common core of both traits might be related to behavioral measures of effort discounting in a more systematic fashion. To address this question, we aimed at specifying a core construct of cognitive effort investment that reflects dispositional differences in the willingness and tendency to exert effortful control.MethodsWe conducted two studies (N = 613 and N = 244) with questionnaires related to cognitive motivation and effort investment including assessment of NFC, intellect, self-control and effortful control. We first calculated Pearson correlations followed by two mediation models regarding intellect and its separate aspects, seek and conquer, as mediators. Next, we performed a confirmatory factor analysis of a hierarchical model of cognitive effort investment as second-order latent variable. First-order latent variables were cognitive motivation reflecting NFC and intellect, and effortful self-control reflecting self-control and effortful control. Finally, we calculated Pearson correlations between factor scores of the latent variables and general self-efficacy as well as traits of the Five Factor Model of Personality for validation purposes.ResultsOur findings support the hypothesized correlations between the assessed traits, where the relationship of NFC and self-control is specifically mediated via goal-directedness. We established and replicated a hierarchical factor model of cognitive motivation and effortful self-control that explains the shared variance of the first-order factors by a second-order factor of cognitive effort investment.ConclusionsTaken together, our results integrate disparate literatures on cognitive motivation and self-control and provide a basis for further experimental research on the role of dispositional individual differences in goal-directed behavior and cost–benefit-models.

Cost-Benefit Analysis of Allowing Additional Time in Cleaning Hospital Contact Precautions Rooms

Increasing cleaning time may reduce hospital-acquired transmission of Clostridioides difficile, methicillin-resistant Staphylococcus aureus (MRSA), and vancomycin-resistant enterococcus (VRE). We constructed a cost-benefit model to estimate the impact of implementing an enhanced cleaning protocol, allowing hospital housekeepers an additional 15 minutes to terminally clean contact precautions rooms. The enhanced cleaning protocol saved the hospital $758 per terminally-cleaned room when accounting for only C. difficile. Scaling up to a hospital with 100 cases of C. difficile/year, and the US annual C. difficile incidence, cost savings were $75,832/year and $169.8 million/year, respectively. These results may inform infection control strategic decision-making and resource allocation.

Multi-Attribute Decision Making using Hybrid Approach based on Benefit-Cost Model for Sustainable Fashion

Multi-Attribute Decision Making (MADM) is used to select the best alternative from multi-alternatives based on multi-attribute (fashion material) and multi-criteria (sustainable fashion). Multi-alternatives are cotton, linen, silk, wool, acrylic, nylon, polyester, rayon, spandex, and mixed. Multi-attributes are material, texture, color, characteristic, comfort, and wearability. Multi-criteria are material fiber, smooth texture, faded color, elastic clothing, useful long, chilly and comfortable. Hybrid approaches and optimal solutions are needed to determine the best choice in decision making for both producers and consumers. The hybrid approach in MADM used is Simple Multi-Attribute Rating (SMART), Multi-Factor Evaluation Process (MFEP), Multi-Object Optimization based on Ratio Analysis (MOORA), Simple Additive Weighting (SAW), and Weighted Product (WP). SMART and MFEP are based on the Non-Benefit Cost Model while MOORA, SAW, and WP are based on a Benefit-Cost Model. The experimental results show that the SMART model with the best alternative is the rayon with the highest value (2.8333). The selection of the MFEP Model with the best alternative is rayon with the highest value (2.8330). The choice of MOORA model with the best alternative is rayon with the highest value (0.2595). The selection of the SAW Model with the best alternative is rayon with the highest value (0.8932). The selection of the WP Model with the best alternative is rayon with the highest value (0.1285). MADM using SMART, MFEP, MOORA, SAW, and WP for sustainable fashion yields the best alternative for consumption and production for the middle-class population in Indonesia.

Research on the coordinated optimization operation method of Park Comprehensive Energy System Based on master-slave game

With the transformation of the energy market from the traditional vertical integrated structure to the interactive competitive structure, the distributed characteristics of the energy system become more and more obvious, and the traditional centralized optimization method is difficult to reveal the interaction between the multi-agent. In this paper, a method based on master-slave game is proposed to optimize the operation of park integrated energy system. Firstly, user load model, user benefit model, operator revenue and cost model are established for park integrated energy system. Secondly, the Stackelberg master-slave game model of interactive optimization operation is established, and the peak cutting compensation price is adjusted. Both of them aim at maximizing their own interests until the game equilibrium is achieved. A distributed cooperative optimization model with one master and many slaves is established and solved by the combination of genetic algorithm and quadratic programming. Finally, an example is given to verify the effectiveness of the proposed method.