Environmental Management through Coopetitive Urban Waste Recycling in Eco-Industrial Parks

In this article, we consider the coexistence of competing actors within a specific eco-industrial park. The competing firms dynamics evolves by means of an interplay agreement determined among the competitors themselves. In particular, we show a possible scenario in which the selected eco-industrial competitors could greatly benefit from a coopetitive interaction, within their common eco-park, while improving the general conditions of a near residential area. The associated dynamical coopetitive agreement, aims at the growth and improvement of the firms themselves and of their industrial network (within a virtuous environmental path). As an example, we assume the existence of two competitors selling the same good on the same market, so that, from a competitive point of view, we construct a classic Cournot duopoly model upon which we build up a multidimensional coopetitive agreement. Our eco-friendly deal allows to enlarge the pie of possible gains by diminishing sunk costs and other forms of costs, especially the environmental costs associated to the management of urban waste recycling. Consequently, we suggest production methods and production quantitative profiles in order to share the gains fairly. We show a complete mathematical analysis of our new economic game and show some of its possible and relevant solutions.

Automated summary

This article examines the coexistence of competing actors within a specific eco-industrial park and explores the dynamics of coopetition among the competitors to enhance their growth and improve environmental conditions. By reducing costs and sharing gains, a virtuous environmental path is established through a multidimensional coopetitive agreement, leading to fair distribution of benefits and a complete mathematical analysis of the economic game.