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Research on Network Equilibrium of Eco-Industrial Chains

Author: XuShiQin
Tutor: LiChunFa
School: Tianjin University of Technology
Course: Management Science and Engineering
Keywords: eco-industrial chain industrial symbiosis network equilibrium variational inequality
CLC: F062.2
Type: Master's thesis
Year: 2010
Downloads: 84
Quote: 1
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Abstract


Developing ecological industry is an effective way of promoting the coordinated and sustainable development about economy, environment and society. The construction of eco-industrial park is important to build eco-industrial system, while eco-industry chain is the core and infrastructure of building eco-industrial park. Eco-industrial chain is a new production organizational structure, which imitates natural ecosystem by manners of materials circulation and patterns of competition and symbiosis between biological colonies to make different enterprises share resources (raw materials, energy, infrastructure, information, finance, human resource) and exchange by-product. Then, it can make by-product generated in the production process of upstream firms become the raw material for the production of downstream firms in order to achieve the maximization of economic and environmental benefits for the enterprises and the whole eco-industrial park.The economic incentives for the various enterprises blending in the eco-industrial chain mainly origin from material recycling and resource recycling, which can save a variety of costs associated with energy, raw materials, transportation, disposal as well as discharge of pollutant and can response to the relevant regulations effectively. Consequently, the eco-industry chain is a network structure based on varying value. To maintain smooth operations of this complex network, on the one hand it seeks to maximize the overall benefit of the network, and on the other hand it also needs to take into account both cooperation and competition among the various enterprises of the network. Thus, it is very necessary to investigate the benefit equilibrium of the whole eco-industrial chain.At present, there are many researches about eco-industrial chain, but few involve the eco-industrial chain equilibrium network. In this thesis, equilibrium theory and variational inequality theory are employed to develop the eco-industrial chain network equilibrium model consisting of producer enterprises, consumer enterprises, decomposer enterprises and demand markets.Firstly, we generalize the relevant studies and basic theories systematically in this thesis. Secondly, based on the natural ecosystem composed of producers, consumers as well as decomposers, we study the multi-product (main product, by-product and waste) and multi-level eco-industrial chain network structure in which the various decision-makers may compete within a tier but cooperate between tiers. We describe the optimizing behavior of the decision-makers, derive the optimality conditions, establish the equilibrium conditions with the corresponding economic interpretation, and provide the finite-dimensional variational inequality formulation. Then, we utilize variational inequality theory to obtain qualitative property of the equilibrium model regarding the existence under reasonable assumptions. Thirdly, three relevant cases are constructed and discussed to verify the correctness and rationality of the model, and equilibrium results of each case are analyzed to reflect the nature of eco-industrial chain, that is, the industrial symbiosis. What’s more, the equilibrium transaction flows as well as equilibrium prices derived from the cases would be helpful for eco-industrial chain enterprises determining their scale of production and price.Based on the eco-industrial chain network equilibrium model, we attempt to add muticriteria decision-making to the original eco-industrial chain which is associated with a single objective of profit maximization, and we establish the muticriteria eco-industrial chain network equilibrium model where risk minimization and relationship value are considered. This extended model imposes a promotive impact on the ecological industry chain network equilibrium model for further study. According to this thesis, we can provide a reference of theoretical and operational decision-making for the construction of the eco-industrial chain.

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CLC: > Economic > Economics > Branch of science in Economics > Ecological Economics
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