A Hybrid Methodology to Study Stakeholder Cooperation in Circular Economy Waste Management of Cities

Successful transitioning to a circular economy city requires a holistic and inclusive approach that involves bringing together diverse actors and disciplines who may not have shared aims and objectives. It is desirable that stakeholders work together to create jointly-held perceptions of value, and yet cooperation in such an environment is likely to prove difficult in practice. The contribution of this paper is to show how collaboration can be engendered, or discord made transparent, in resource decision-making using a hybrid Game Theory approach that combines its inherent strengths with those of scenario analysis and multi-criteria decision analysis. Such a methodology consists of six steps: (1) define stakeholders and objectives; (2) construct future scenarios for Municipal Solid Waste Management; (3) survey stakeholders to rank the evaluation indicators; (4) determine the weights for the scenarios criteria; (5) reveal the preference order of the scenarios; and (6) analyse the preferences to reveal the cooperation and competitive opportunities. To demonstrate the workability of the method, a case study is presented: The Tyseley Energy Park, a major Energy-from-Waste facility that treats over two-thirds of the Municipal Solid Waste of Birmingham in the UK. The first phase of its decision-making involved working with the five most influential actors, resulting in recommendations on how to reach the most preferred and jointly chosen sustainable scenario for the site. The paper suggests a supporting decision-making tool so that cooperation is embedded in circular economy adoption and decisions are made optimally (as a collective) and are acceptable to all the stakeholders, although limited by bounded rationality.