Government Subsidies for Industrial Symbiosis: Is It Always Worth It? Assessing Effectiveness and Efficiency Through Agent‐Based Modeling

Policy intervention can be a driver for industrial symbiosis (IS). However, given the wide variety of policy instruments available,policymakers should be guided in the policy design process to ensure that their intervention is effective and efficient. In thispaper, we propose an agent-based (AB) model intended to assess the effectiveness and efficiency of different subsidy programs forIS. The model depicts the development of an ISN where the government can provide two types of subsidies, that is, (1) subsidiesfor IS investments and (2) subsidies for the waste exchange. Results suggest that policy effectiveness is primarily related to designand that the most effective design depends on the specific industrial context targeted. Specifically, increasing financial supportis not necessarily the most effective solution. Moreover, effectiveness and efficiency are not directly related. Therefore, efficiencyshould only be considered to choose between policies with comparable levels of effectiveness. This study enhances the currentstate of the art by proposing a novel methodological approach to address the problem of policy effectiveness in the field of IS,offering a systemic and dynamic perspective.