Trust between municipality and residents: A game-theory model for municipal solid-waste recycling efficiency

Efficient and sustainable municipal solid-waste management is a social, environmental, and economic challenge. One practice that enhances the success of municipal solid-waste management is building and operating a household separation at source infrastructure for recycling. In this study, we use game-theory tools to identify difficulties that a municipality and its residents face in building and operating infrastructure for recycling under the Extended Producer Responsibility law. The model presents a holistic and broad perspective on the social and economic parameters that affect the efficiency of recycling in a municipality. We explain the strategies available to players and the factors affecting the utilities gained by waste separation and recycling. We present several Nash equilibria in pure and mixed strategies and specify the coordination game conditions. The model identifies parameters and their effect on the decision to recycle. The study presents changes needed to streamline a recycling system for an efficient equilibrium.