Abstract
In this research, approaches of interval mathematical programming, two-stage stochastic programming and conditional value-at-risk (CVaR) are incorporated within a general modeling framework, leading to an interval-parameter mean-CVaR two-stage stochastic programming (IMTSP). The developed method has several advantages: (i) it can be used to deal with uncertainties presented as interval numbers and probability distributions, (ii) its objective function simultaneously takes expected cost and system risk into consideration, thus, it is useful for helping decision makers analyze the trade-offs between cost and risk, and (iii) it can be used for supporting quantitatively evaluating the right tail of distributions of waste generation rate, which can better quantify the system risk. The IMTSP model is applied to the long-term planning of municipal solid waste management system in the City of Regina, Canada. The results indicate that IMTSP performs better in its capability of generating a series of waste management patterns under different risk-aversion levels, and also providing supports for decision makers in identifying desired waste flow strategies, considering balance between system economy and environmental quality.
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Acknowledgments
This research was supported by the National key basic research development planning project (No. 2010CB428501) and by the National high technology research and development program (Nos. 2008AA06A415 and 2009AA06A41802). The authors are grateful to the editors and the anonymous reviewers for their insightful comments and suggestions.
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Dai, C., Cai, X.H., Cai, Y.P. et al. An interval-parameter mean-CVaR two-stage stochastic programming approach for waste management under uncertainty. Stoch Environ Res Risk Assess 28, 167–187 (2014). https://doi.org/10.1007/s00477-013-0738-6
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DOI: https://doi.org/10.1007/s00477-013-0738-6