Modeling an Industrial Symbiosis Network using Bilevel Programming

In this study, we propose a bilevel programming model for a theoretical industrial symbiosis network located in an Eco-Industrial Park. Plants in this forest products-based network comprising a sawmill, a plywood manufacturer, a particleboard producer, a fiberboard producer and a pellet producer aim to minimize their production related costs. On the other hand, the park authority aims to minimize the use of raw materials to foster by-product exchange in the park. Therefore, we propose a bilevel programming model where the park authority is the upper-level decision-maker/leader and the plants in the network are the lower-level decision makers/ followers. Our aim is to investigate the effects of industrial symbiosis on emissions and the profitability of the companies. Results s how only by decreasing raw material use, companies in such a network could stay profitable without increasing emissions.