PSO-Based Risk Allocation in Waste-To-Energy Incineration Public-Private Partnership model

Fair and reasonable risk sharing mechanism is beneficial to reduce the risk of investment and improve the economic benefits of Waste-To-Energy incineration projects project investment. In order to quantitatively study the risk allocation ratio of PPP Waste-To-Energy incineration projects, an intelligent optimization algorithm is used to solve the problem. Based on the utility model of government and enterprise, the risk sharing model is established by introducing the altruistic preference coefficient. In this paper the relationship between the altruistic preference coefficient, the risk-sharing ratio and the maximum utility value of government and firm qualitatively are studied. PSO algorithm is used to determine the altruistic preference coefficient, the government’s risk-sharing ratio and the enterprise’s effort.