Stackelberg equilibrium-based eco-economic approach for sustainable development of kitchen waste disposal with subsidy policy: A case study from China

Abstract Increased stress on environmental pollution, resource consumption, and public health resulting from the rapid growth of kitchen waste (KW) have necessitated a disposal way of recycling and reuse. In this study, three disposal lines are considered to convert the KW into clean and renewable energy products, during which a Stackelberg equilibrium-based model is developed to achieve a balance between cost savings, carbon emissions reduction and profit making by considering the interests of the local government and KW disposal plants. A practical case is then conducted to demonstrate the effectiveness and practicality of the proposed methodology, after which scenario analyses are conducted and practical suggestions are given. The government subsidy was positively correlated with cost investment and economic profits, with peak values arriving at 545 thousand CNY and 388 thousand CNY respectively, while the wet KW proportions (WKP) had a positive impact on carbon emissions and economic profits, reaching 596 tons and 457 thousand CNY respectively. The proposed methodology was found efficiently enough to regulate KW disposal, resolve ecological and economic (eco-economic) conflicts and achieve sustainable social development.