Effect of policy on industrial symbiosis: Simulation study from the perspective of enterprise operation

Industrial symbiosis (IS) plays an important role in achieving ecological industry and sustainable development, and policy action is regard as a crucial method to stimulate IS in practice. Accordingly, through quantitative analysis, this article has explored the efficacy of policy on IS implementation from the perspective of enterprise operation. A framework for policy influence is proposed, using enterprise inputoutput model, agent-based model, two policy measures (subsidy and penalty), and a case study. Results show that two policies have positive effects in all situations but the marginal utility decreases. However, the efficacy of policy is influenced by the relationship between waste supply and demand. When the waste supply is smaller than the demand, a penalty policy can more effectively enhance the possibility of enterprises participating in IS; otherwise, the subsidy policy is more effective. Moreover, the effect of combination of policy cannot outperform the efficiency of independent utilization of policy, but it can expand the applicability of the policy. Following this, some insights into managerial implications to increase the possibility of IS relationships arising are discussed. Our research emphasizes the necessity of studying policy from the perspective of enterprises, and may contribute the policy support to the increased potential of IS practicality.(c) 2022 Institution of Chemical Engineers. Published by Elsevier Ltd. All rights reserved.