Equilibrium strategy based waste load allocation using simulated annealing optimization algorithm

This study focuses on development of equilibrium strategy based on simulated annealing (SA) algorithm for balancing economic and environmental concerns in waste load allocation (WLA) problem. To resolve conflicts among various stakeholders, including Iran Department of Environment (DoE) as governmental authority and industrial and municipal dischargers, Stackelberg and Nash bargaining games have been applied in this WLA problem and the results have been compared. SA algorithm has been coupled to QUAL2Kw model to derive optimal WLA program and the environmental penalty tariff (EPT) in Nash bargaining and Stackelberg games. The proposed tools and methodologies were illustrated in a case study of multi-stakeholders WLA problem in Gheshlagh River, Sanandaj, Kordestan, Iran. The results indicate that lower BOD removal rates are allocated to the pollutant dischargers in the Stackelberg game compared to the Nash bargaining game. Furthermore, the EPT assigned by Iran DoE in Stackelberg and Nash bargaining games are 11.25 and 3.6 Rials/(gr/month), respectively. The estimated EPT in the Stackelberg game is close to the current tariff (10 Rials/(gr/month)) specified by Iran DoE on impermissible BOD discharges.