Bi-level planning model for NIMBY facility location problem

To explore NIMBY facility location problem, its externality should be taken full account with. In this paper, we took garbage power plant as an example, introduced a reasonable compensation mechanism to eliminate the externality of garbage power plant and established an exact location model with external compensation. Moreover, considering the commercial characteristics and competition relationship of garbage power plant, we established a bi-level planning model of garbage power plant location with both externality and competition. We calculated and validated the model by using Wuhan city actual case data.