(705e) A Coordinated Multi-Product Market for Organic Waste Management
We propose a coordinated market framework to exchange waste streams, processing, transportation services, and derived products. The framework is motivated and designed after coordinated electricity markets that currently exist in operation and that have led to high economic efficiency and technology innovation . Also, the suppliers and consumers of waste and derived products, as well as technology and transportation providers bid into the market to offer their services. Prices for waste and derived products are obtained by solving a market clearing problem that balances products across a supply chain network that connects all the market participants. The market clearing problem provides prices for all products and services across the network.
We prove that the market clearing problem provides prices under which the profits of all market players are non-negative and provides a Pareto optimal solution (thus representing a true trade-off between the profits of all players). We provide illustrative examples to show the capability and properties of this coordinated market framework and demonstrate that the framework is flexible and can accommodate more sophisticated market players such as environmental remediation costs, waste storage, and policymakers and local/state/federal governments (which provide incentives/penalties to drive the market). The market can be cleared on a regular basis to adjust waste flows and prices due to seasonal effects (e.g., nutrient run-off during spring or poor air quality in particular areas). Moreover, the market naturally captures geographical effects (by providing space-dependent prices). This property can be used to redistribute waste streams across geographical regions (e.g., push nutrients away from endangered areas).
We use the proposed framework in a real case study of the Rock River basin in the State of Wisconsin. We consider (i) multiple organic waste streams including cow manure, wastewater sludge, and household food waste; (ii) multiple waste processing technologies that include nutrient recovery, energy production, and natural environmental degradation; (iii) regulatory drivers, such as RECs (Renewable Energy Certificates) and RINs (Renewable Identification Numbers) [6,7]; as well as (iv) environmental and social constraints on key factors such as TMDL (Total Maximum Daily Loads) .
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