Optimization of municipal solid waste management using a coordinated framework

Abstract

Municipal solid waste (MSW) management is an important but complex logistical problem. The deployment of MSW management systems is hindered by the ever-growing generation of waste and the often insufficient infrastructure to manage, process, and dispose of waste. This paper presents a coordinated framework for complex MSW management systems. The framework accommodates multiple key stakeholders in MSW systems, such as suppliers of waste, consumers of waste and derived products, and providers of transportation and processing services. Here, the stakeholders submit bids to a coordinator that solves an optimization problem to determine allocations and clearing prices that maximize the collective profit for all stakeholders and that balance supply and demand for waste and products. Furthermore, the clearing process guarantees that the individual profits are non-negative (no stakeholder loses money). Notably, the framework operates as a competitive market that accelerates transactions between stakeholders and that handles complex logistical constraints that would be difficult to handle in peer-to-peer transactions. The framework also facilitates the integration of policy incentives and the monetization of environmental impacts. In this regard, we evaluate a tax applied to open dump disposal. To illustrate the applicability, an MSW system in Mexico was analyzed as a case study. Results reveal that taxation can be used to incentivize the provision of services for all stakeholders. Specifically, we found that an appropriate tax can completely avoid disposal in open dumps. A tax of 5.1 USD/tonne was identified as the minimum penalization that avoids diverting waste to open dumps.

Keywords: Coordinated markets; Municipal solid waste; Optimization; Stakeholders; Taxation; Waste management.