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A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism

Carbon trading is a market-based mechanism for controlling carbon emissions by providing economic incentives to reduce emissions. In recent years, there has been an increasing interest in modeling supply chain networks under this scheme, however, to date, only a limited number of researchers have in...

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Main Authors: Memari, Yasaman, Memari, Ashkan, Ebrahimnejad, Sadoullah, Ahmad, Robiah
Format: Article
Published: Springer Science and Business Media Deutschland GmbH 2023
Subjects:
T Technology (General)
Online Access:http://eprints.utm.my/105488/
http://dx.doi.org/10.1007/s13399-020-01264-1
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spelling my.utm.1054882024-06-30T00:41:43Z http://eprints.utm.my/105488/ A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism Memari, Yasaman Memari, Ashkan Ebrahimnejad, Sadoullah Ahmad, Robiah T Technology (General) Carbon trading is a market-based mechanism for controlling carbon emissions by providing economic incentives to reduce emissions. In recent years, there has been an increasing interest in modeling supply chain networks under this scheme, however, to date, only a limited number of researchers have investigated the implication of this mechanism for biofuel supply chains. The optimization model presented in this paper examines a trade-off between the cost of trading carbon credits and costs associated with outsourcing of the biomass pretreatment process when carbon emissions exceed the predetermined carbon cap in a biofuel supply chain. To demonstrate the applicability of the model, we analyzed challenges in supplying different sources of biomass to two biorefinery plants and shipping the produced biofuels to multiple demand zones. The results showed that carbon emission reductions have a relatively nonlinear pattern when the carbon credit price increases linearly. Furthermore, we presented significant managerial and policy insights on the impact of different carbon emission caps on total costs and total emissions. Moreover, we analyzed the cost adjustment between trading carbon credits and outsourcing decisions for different carbon cap settings. This paper ends with suggestions for further development of the presented model for future researches. Springer Science and Business Media Deutschland GmbH 2023 Article PeerReviewed Memari, Yasaman and Memari, Ashkan and Ebrahimnejad, Sadoullah and Ahmad, Robiah (2023) A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism. Biomass Conversion and Biorefinery, 13 (2). pp. 1047-1070. ISSN 2190-6815 http://dx.doi.org/10.1007/s13399-020-01264-1 DOI : 10.1007/s13399-020-01264-1
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic T Technology (General)
spellingShingle T Technology (General)
Memari, Yasaman
Memari, Ashkan
Ebrahimnejad, Sadoullah
Ahmad, Robiah
A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
description Carbon trading is a market-based mechanism for controlling carbon emissions by providing economic incentives to reduce emissions. In recent years, there has been an increasing interest in modeling supply chain networks under this scheme, however, to date, only a limited number of researchers have investigated the implication of this mechanism for biofuel supply chains. The optimization model presented in this paper examines a trade-off between the cost of trading carbon credits and costs associated with outsourcing of the biomass pretreatment process when carbon emissions exceed the predetermined carbon cap in a biofuel supply chain. To demonstrate the applicability of the model, we analyzed challenges in supplying different sources of biomass to two biorefinery plants and shipping the produced biofuels to multiple demand zones. The results showed that carbon emission reductions have a relatively nonlinear pattern when the carbon credit price increases linearly. Furthermore, we presented significant managerial and policy insights on the impact of different carbon emission caps on total costs and total emissions. Moreover, we analyzed the cost adjustment between trading carbon credits and outsourcing decisions for different carbon cap settings. This paper ends with suggestions for further development of the presented model for future researches.
format Article
author Memari, Yasaman
Memari, Ashkan
Ebrahimnejad, Sadoullah
Ahmad, Robiah
author_facet Memari, Yasaman
Memari, Ashkan
Ebrahimnejad, Sadoullah
Ahmad, Robiah
author_sort Memari, Yasaman
title A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
title_short A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
title_full A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
title_fullStr A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
title_full_unstemmed A mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
title_sort mathematical model for optimizing a biofuel supply chain with outsourcing decisions under the carbon trading mechanism
publisher Springer Science and Business Media Deutschland GmbH
publishDate 2023
url http://eprints.utm.my/105488/
http://dx.doi.org/10.1007/s13399-020-01264-1
_version_ 1803334981110464512
score 13.211869

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