Bi-level fuzzy optimization approach for water exchange in eco-industrial parks

In order to minimize the consumption of resources and the generation of waste, eco-industrial parks (EIPs) have been designed to encourage the establishment of waste exchange networks between the plants contained within them. Considering that the participating plants have their individual fuzzy cost goals and that the park authority has the objective of minimizing total freshwater consumption in the EIP, this problem may be formulated as a bi-level optimization problem, with the park authority as the upper-level decision-maker. A bi-level fuzzy optimization model is developed to explore the effect of charging fees for the purchase of freshwater and the treatment of wastewater in optimizing the water exchange network of plants in an EIP. The effect of subsidizing exchange of streams between plants is also included in the model. Results show that it is not necessary to impose exorbitant fees, nor to completely subsidize costs associated with recycling, in order to induce significant reduction of the consumption of freshwater in the EIP.