IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v17y2017i3d10.1007_s12351-017-0315-8.html
   My bibliography  Save this article

Subsidy rate decisions for the printer recycling industry by bi-level optimization techniques

Author

Listed:
  • Chi-Bin Cheng

    (Tamkang University)

  • Hsu-Shih Shih

    (Tamkang University)

  • Boris Chen

    (Tamkang University)

Abstract

This study attempts to optimize the operations of the Recycling Fund Management Board (RFMB), founded by the Environmental Protection Administration of the ROC Government (in Taiwan), by using a subsidy rate decision for domestic printer recyclers. The hierarchical and interactive relation between the two parties is modeled by bi-level programming, where the RFMB serves as the upper-level decision unit, recyclers are the lower-level counterpart, and the consumer’s action is embedded in the constraints of the lower level problem. The problem is solved by the Karush–Kuhn–Tucker transformation approach. Practical data including sales of printers per year, a survey of recycling intention, recycler cost structure, and resource recycling value are used to solve the problem. The resulting solution discovers the inefficiency of the current operations of RFMB, and suggests an appropriate recycling fee and subsidy rate that balance the interests of printer manufacturers, recyclers, and the RFMB.

Suggested Citation

  • Chi-Bin Cheng & Hsu-Shih Shih & Boris Chen, 2017. "Subsidy rate decisions for the printer recycling industry by bi-level optimization techniques," Operational Research, Springer, vol. 17(3), pages 901-919, October.
    • Handle: RePEc:spr:operea:v:17:y:2017:i:3:d:10.1007_s12351-017-0315-8
    DOI: 10.1007/s12351-017-0315-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-017-0315-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12351-017-0315-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Sinha, Surabhi & Sinha, S. B., 2002. "KKT transformation approach for multi-objective multi-level linear programming problems," European Journal of Operational Research, Elsevier, vol. 143(1), pages 19-31, November.
    3. Hai-Lan Yang & Robert Innes, 2007. "Economic Incentives and Residential Waste Management in Taiwan: An Empirical Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 489-519, July.
    4. J. Fliege & L. N. Vicente, 2006. "Multicriteria Approach to Bilevel Optimization," Journal of Optimization Theory and Applications, Springer, vol. 131(2), pages 209-225, November.
    5. Roelfsema, Hein, 2007. "Strategic delegation of environmental policy making," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 270-275, March.
    6. Bevin Ashenmiller, 2009. "Cash Recycling, Waste Disposal Costs, and the Incomes of the Working Poor: Evidence from California," Land Economics, University of Wisconsin Press, vol. 85(3), pages 539-551.
    7. Jonathan P. Caulkins, 1993. "Local Drug Markets' Response to Focused Police Enforcement," Operations Research, INFORMS, vol. 41(5), pages 848-863, October.
    8. Jonathan F. Bard, 1984. "Optimality conditions for the bilevel programming problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 31(1), pages 13-26, March.
    9. Baveja, Alok & Batta, Rajan & Caulkins, Jonathan P. & Karwan, Mark H., 1993. "Modeling the response of illicit drug markets to local enforcement," Socio-Economic Planning Sciences, Elsevier, vol. 27(2), pages 73-89, June.
    10. Thomas C. Kinnaman & Don Fullerton, 2002. "Garbage and Recycling with Endogenous Local Policy," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 6, pages 120-143, Edward Elgar Publishing.
    11. Wayne F. Bialas & Mark H. Karwan, 1984. "Two-Level Linear Programming," Management Science, INFORMS, vol. 30(8), pages 1004-1020, August.
    12. Omar Ben-Ayed & Charles E. Blair, 1990. "Computational Difficulties of Bilevel Linear Programming," Operations Research, INFORMS, vol. 38(3), pages 556-560, June.
    13. Onal, Hayri, 1993. "A modified simplex approach for solving bilevel linear programming problems," European Journal of Operational Research, Elsevier, vol. 67(1), pages 126-135, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rihab Said & Maha Elarbi & Slim Bechikh & Lamjed Ben Said, 2022. "Solving combinatorial bi-level optimization problems using multiple populations and migration schemes," Operational Research, Springer, vol. 22(3), pages 1697-1735, July.
    2. Hussain, Jafar & Lee, Chien-Chiang & Chen, Yongxiu, 2022. "Optimal green technology investment and emission reduction in emissions generating companies under the support of green bond and subsidy," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feichtinger, Gustav & Grienauer, Waltraud & Tragler, Gernot, 2002. "Optimal dynamic law enforcement," European Journal of Operational Research, Elsevier, vol. 141(1), pages 58-69, August.
    2. Acuff, Kaylee & Kaffine, Daniel T., 2013. "Greenhouse gas emissions, waste and recycling policy," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 74-86.
    3. Elbert Dijkgraaf & Raymond Gradus, 2015. "Efficiency Effects of Unit-Based Pricing Systems and Institutional Choices of Waste Collection," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 641-658, August.
    4. Kort, P.M. & Feichtinger, G. & Hartl, R.F. & Haunschmied, J.L., 1996. "Optimal Enforcement Policies (Crackdowns) on a Drug Market," Other publications TiSEM 8f874586-670a-470a-95a6-b, Tilburg University, School of Economics and Management.
    5. Sinha, Surabhi & Sinha, S. B., 2002. "KKT transformation approach for multi-objective multi-level linear programming problems," European Journal of Operational Research, Elsevier, vol. 143(1), pages 19-31, November.
    6. Raymond (R.H.J.M.) Gradus & Elbert (E.) Dijkgraaf, 2017. "Dutch Municipalities are Becoming Greener: Some Political and Institutional Explanations," Tinbergen Institute Discussion Papers 17-086/VIII, Tinbergen Institute.
    7. G. Hibino & M. Kainuma & Y. Matsuoka & T. Morita, 1996. "Two-level Mathematical Programming for Analyzing Subsidy Options to Reduce Greenhouse-Gas Emissions," Working Papers wp96129, International Institute for Applied Systems Analysis.
    8. Ginoux, Jean-Marc & Naeck, Roomila & Ruhomally, Yusra Bibi & Dauhoo, Muhammad Zaid & Perc, Matjaž, 2019. "Chaos in a predator–prey-based mathematical model for illicit drug consumption," Applied Mathematics and Computation, Elsevier, vol. 347(C), pages 502-513.
    9. Budnitzki, Alina, 2014. "Computation of the optimal tolls on the traffic network," European Journal of Operational Research, Elsevier, vol. 235(1), pages 247-251.
    10. Syed Mohd Muneeb & Ahmad Yusuf Adhami & Zainab Asim & Syed Aqib Jalil, 2019. "Bi-level decision making models for advertising allocation problem under fuzzy environment," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(2), pages 160-172, April.
    11. Pramanik, Surapati & Roy, Tapan Kumar, 2007. "Fuzzy goal programming approach to multilevel programming problems," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1151-1166, January.
    12. Syed Aqib Jalil & Shakeel Javaid & Syed Mohd Muneeb, 2018. "A decentralized multi-level decision making model for solid transportation problem with uncertainty," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 9(5), pages 1022-1033, October.
    13. Fontaine, Pirmin & Minner, Stefan, 2014. "Benders Decomposition for Discrete–Continuous Linear Bilevel Problems with application to traffic network design," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 163-172.
    14. Lakhan, Calvin, 2014. "Exploring the relationship between municipal promotion and education investments and recycling rate performance in Ontario, Canada," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 222-229.
    15. Carattini, Stefano & Baranzini, Andrea & Lalive, Rafael, 2018. "Is Taxing Waste a Waste of Time? Evidence from a Supreme Court Decision," Ecological Economics, Elsevier, vol. 148(C), pages 131-151.
    16. Walls, Margaret, 2011. "Deposit-Refund Systems in Practice and Theory," RFF Working Paper Series dp-11-47, Resources for the Future.
    17. Tongzhe Li & Ana Espínola-Arredondo & Jill J. McCluskey, 2016. "Promoting Residential Recycling: An Alternative Policy Based on a Recycling Reward System," Games, MDPI, vol. 7(3), pages 1-18, August.
    18. Benoît Colson & Patrice Marcotte & Gilles Savard, 2007. "An overview of bilevel optimization," Annals of Operations Research, Springer, vol. 153(1), pages 235-256, September.
    19. Gragnani, A. & Rinaldi, S. & Feichtinger, G., 1997. "Dynamics of drug consumption: a theoretical model," Socio-Economic Planning Sciences, Elsevier, vol. 31(2), pages 127-137, June.
    20. Liu, Yi-Hsin & Spencer, Thomas H., 1995. "Solving a bilevel linear program when the inner decision maker controls few variables," European Journal of Operational Research, Elsevier, vol. 81(3), pages 644-651, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:operea:v:17:y:2017:i:3:d:10.1007_s12351-017-0315-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.