Title: A management framework for the implementation of policies for industrial ecology, Part II: a competitive bidding process

Authors: Nur Indrianti, Shinobu Matsuoka, Masaaki Muraki

Addresses: Department of Industrial Engineering and Management, Tokyo Institute of Technology, 2–12–1 O-okayama, Meguro-ku, Tokyo 152–8552, Japan. ' Department of Industrial Engineering and Management, Tokyo Institute of Technology, 2–12–1 O-okayama, Meguro-ku, Tokyo 152–8552, Japan. ' Department of Industrial Engineering and Management, Tokyo Institute of Technology, 2–12–1 O-okayama, Meguro-ku, Tokyo 152–8552, Japan

Abstract: One strategy to implement Industrial Ecology (IE) is to utilise industrial waste streams as alternative sources of other needed materials. This paper is concerned with a competitive bidding process for converter selection to support the implementation of tax and subsidy policy that promotes secondary material converted from industrial waste, as a substitute for virgin material. With regard to the government|s problem in determining the quota to allocate and the converter|s difficulties in building strategies, we propose a two-stage sealed-bid format and rating approach using a performance index for converter selection and quota allocation. We describe a bidding procedure that can be efficient and effective for both the government and the converters participating in the bidding process. Our analysis shows that the implementation of a two-stage bidding format can improve competition among bidders, leading to a better achievement of the goal of the policy.

Keywords: policy management; tax policy; subsidy policy; waste mining; industrial ecology; environmental policy; secondary material; sustainable development; competitive bidding; converter selection.

DOI: 10.1504/PIE.2006.011129

Progress in Industrial Ecology, An International Journal, 2006 Vol.3 No.3, pp.192 - 208

Available online: 17 Oct 2006 *

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