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

ABSTRACT 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 this paper, we propose an agent‐based (AB) model intended to assess the effectiveness and efficiency of different subsidy programs for IS. The model depicts the development of an ISN where the government can provide two types of subsidies, that is, (1) subsidies for IS investments and (2) subsidies for the waste exchange. Results suggest that policy effectiveness is primarily related to design and that the most effective design depends on the specific industrial context targeted. Specifically, increasing financial support is not necessarily the most effective solution. Moreover, effectiveness and efficiency are not directly related. Therefore, efficiency should only be considered to choose between policies with comparable levels of effectiveness. This study enhances the current state 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.