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The purpose of the model is to explore the influence of actor behaviour, combined with environment and business model design, on the survival rates of Industrial Symbiosis Networks (ISN), and the cash flows of the agents. We define an ISN to be robust, when it is able to run for 10 years, without falling apart due to leaving agents.
The model simulates the implementation of local waste exchange collaborations for compost production, through the ISN implementation stages of awareness, planning, negotiation, implementation, and evaluation.
One central firm plays the role of waste processor in a local composting initiative. This firm negotiates with other firms to become a supplier of their organic residual streams. The waste suppliers in the model can decide to join the initiative, or to have the waste brought to the external waste incinerator. The focal point of the model are the company-level interactions during the implementation or ending of synergies.
The purpose of the model is to explore the influence of two circular business models (CBMs), i.e. Circular Waste Management and Waste-as-byproduct, and its design variables on CBM viability. The model represents an Industrial Symbiosis Network (ISN) in which a processor uses the organic waste from suppliers to produce biogas and nutrient rich digestate for local reuse. The model can be used to test the viability of the CBM, which is expressed as value captured (avg. cash flow/ton waste/actor) and the survival of the network over time.
In the model, the value captured is calculated relative to the initial state, using incineration costs as a benchmark. Moderating variables are interactions with the waste incinerator and actor behaviour factors. Actors may leave the network when the waste supply for local production is too low, or when personal economic benefits are too low. When the processor decides to leave, the network fails.