A Game Theory Approach to Encourage Stakeholder Cooperation Towards a Circular Economy Waste Management in Cities

Posted: 24 Jun 2019

See all articles by Pablo Giovani Palafox-Alcantar

Pablo Giovani Palafox-Alcantar

University of Birmingham, Students

Dexter VL Hunt

University of Birmingham

Chris DF Rogers

University of Birmingham

Date Written: June 22, 2019

Abstract

For a successful transition to circular economy in cities, it is imperative to bring together all actors and disciplines in a comprehensive approach. It is essential that stakeholders work together to create joint value, and yet cooperation is proving difficult to achieve in practice. The contribution of this paper is combining the strengths of scenario analysis, multi-criteria decision making and game theory. Such methodology consists of:

1) define stakeholders and objectives;

2) construct future scenarios for Municipal Solid Waste Management;

3) survey stakeholders to rank the evaluation indicators;

4) determine the weights for the criteria;

5) reveal the preference order of the scenarios; and

6) use the preferences to analyse the cooperation and competitive opportunities.

Incorporating game theory elements in the last step is the novel backbone of the method, it is a particularly useful technique, to study the conflicting viewpoints and objectives between stakeholders towards scenarios in circular economy waste management in cities. To test the method, a case study is conducted in the Tyseley Energy Park in Birmingham, UK, where a major Energy from Waste facility is located treating over two thirds of the Municipal Solid Waste of the city. Anticipated results could lead to the formulation of recommendations on how to reach decisions which are optimal, feasible and stable for all the stakeholders, and therefore how to best implement circular economy principles at the city scale.

Keywords: cooperation, circular economy, game theory, multi-criteria decision analysis, scenario analysis

Suggested Citation

Palafox-Alcantar, Pablo Giovani and Hunt, Dexter VL and Rogers, Chris DF, A Game Theory Approach to Encourage Stakeholder Cooperation Towards a Circular Economy Waste Management in Cities (June 22, 2019). Abstract Proceedings of 2019 International Conference on Resource Sustainability - Cities (icRS Cities), Available at SSRN: https://ssrn.com/abstract=3408402

Pablo Giovani Palafox-Alcantar (Contact Author)

University of Birmingham, Students ( email )

West Midlands
United Kingdom

Dexter VL Hunt

University of Birmingham ( email )

Edgbaston, Birmingham B15 2TT
United Kingdom

Chris DF Rogers

University of Birmingham ( email )

Edgbaston, Birmingham B15 2TT
United Kingdom

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