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Industrial symbiosis: Impact of competition on firms’ willingness to implement
IISE Transactions ( IF 2.6 ) Pub Date : 2020-07-22 , DOI: 10.1080/24725854.2020.1781305
Yunxia Zhu 1 , Milind Dawande 2 , Nagesh Gavirneni 3 , Vaidyanathan Jayaraman 4
Affiliation  

Abstract

Industrial Symbiosis or By-Product Synergy is defined as a resource-sharing strategy that engages traditionally separate industries in a collective approach that involves a physical exchange of materials, water, energy, and by-products. Inspired by a real-world example of a paper–sugar symbiotic complex, we study the impact of competition on a firm’s willingness to implement an industrial symbiotic system. Sugar and paper firms are symbiotically connected, in the sense that the biomass from the manufacture of one product is used as a raw material for the second product, and vice versa. We characterize the firm’s operational optimal/equilibrium decisions for its two products – both in the presence and absence of a symbiotic system – under monopoly as well as under competition. Our models capture the supply-side (e.g., a fixed production cost and changes in the variable production costs), as well as the demand-side (“green” consumers who value the nature-friendly production process) impact of implementing industrial symbiosis. Our results indicate that firms are more willing to implement industrial symbiosis when (i) the proportion of the green consumers is high; or (ii) consumers’ appreciation for the green variants is high; or (iii) variable production costs after implementation are lower. For a firm, competition from firms that only produce regular products encourages implementation of industrial symbiosis, whereas competition from firms that produce both regular and green products discourages it.



中文翻译:

产业共生:竞争对企业实施意愿的影响

摘要

工业共生副产品协同作用被定义为一种资源共享策略,它以一种涉及物质,水,能源和副产品的物理交换的集体方法,使传统上独立的行业参与进来。受到纸糖共生复合物的现实例子的启发,我们研究了竞争对公司实施工业共生体系的意愿的影响。糖业和造纸公司是共生的,这意味着将一种产品的生产过程中产生的生物质用作第二种产品的原料,反之亦然。在垄断和竞争下,我们都描述了该公司在两种产品存在和不存在共生体系的情况下,其最优/平衡经营决策的特征。我们的模型涵盖了实施工业共生的供应方(例如,固定的生产成本和可变的生产成本的变化)以及需求方(重视自然友好型生产过程的“绿色”消费者)影响。我们的结果表明,在以下情况下,企业更愿意实施产业共生:(i)绿色消费者的比例很高;或(ii)消费者对绿色变体的赞赏很高;或(iii)实施后的可变生产成本较低。对于一家公司而言,来自仅生产常规产品的公司的竞争会鼓励工业共生的实现,

更新日期:2020-07-22
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