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An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies

Biomass residues due to their low bulk density typically require frequent transportation from biomass plantations in rural areas to conversion bio-energy power plants. This issue contrasts with environmental protection strategies, especially when power plants are facing different carbon reduction po...

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Main Authors: Memari, Ashkan, Ahmad, Robiah, Abdul Rahim, Abd. Rahman, Jokar, Mohammad Reza Akbari
Format: Article
Published: Springer Verlag 2018
Subjects:
T Technology (General)
Online Access:http://eprints.utm.my/id/eprint/86627/
http://dx.doi.org/10.1007/s10098-017-1461-7
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spelling my.utm.866272020-09-30T08:58:06Z http://eprints.utm.my/id/eprint/86627/ An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies Memari, Ashkan Ahmad, Robiah Abdul Rahim, Abd. Rahman Jokar, Mohammad Reza Akbari T Technology (General) Biomass residues due to their low bulk density typically require frequent transportation from biomass plantations in rural areas to conversion bio-energy power plants. This issue contrasts with environmental protection strategies, especially when power plants are facing different carbon reduction policies that enforce them to emit less than a given specific carbon amount. Although several researchers have investigated bio-energy supply chains concerning environmental policies, the majority of studies have been devoted to strategic decisions over a single planning period. This paper presents a multi-period bio-energy supply chain under carbon pricing (carbon tax) and carbon trading (cap-and-trade) policies at the tactical planning level. A mixed-integer linear programming model was adopted to optimize the proposed regional oil-palm biomass-to-bio-energy supply chain planning model. The numerical results indicate that when carbon pricing is in place when carbon tax increases linearly, carbon emissions’ reductions have a nonlinear trend, whereas both cost increase and carbon emissions’ reductions have a relatively upward trend in the carbon trading scheme. This paper also presents the sensitivity analysis of the proposed model regarding cost, emissions’ generation and supply chain performance. Finally, the paper recommends several significant practical implications and policy-making insights for managers and policymakers. Springer Verlag 2018-01 Article PeerReviewed Memari, Ashkan and Ahmad, Robiah and Abdul Rahim, Abd. Rahman and Jokar, Mohammad Reza Akbari (2018) An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies. Clean Technologies And Environmental Policy, 20 (1). pp. 113-125. ISSN 1618-954X http://dx.doi.org/10.1007/s10098-017-1461-7
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, Ashkan
Ahmad, Robiah
Abdul Rahim, Abd. Rahman
Jokar, Mohammad Reza Akbari
An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
description Biomass residues due to their low bulk density typically require frequent transportation from biomass plantations in rural areas to conversion bio-energy power plants. This issue contrasts with environmental protection strategies, especially when power plants are facing different carbon reduction policies that enforce them to emit less than a given specific carbon amount. Although several researchers have investigated bio-energy supply chains concerning environmental policies, the majority of studies have been devoted to strategic decisions over a single planning period. This paper presents a multi-period bio-energy supply chain under carbon pricing (carbon tax) and carbon trading (cap-and-trade) policies at the tactical planning level. A mixed-integer linear programming model was adopted to optimize the proposed regional oil-palm biomass-to-bio-energy supply chain planning model. The numerical results indicate that when carbon pricing is in place when carbon tax increases linearly, carbon emissions’ reductions have a nonlinear trend, whereas both cost increase and carbon emissions’ reductions have a relatively upward trend in the carbon trading scheme. This paper also presents the sensitivity analysis of the proposed model regarding cost, emissions’ generation and supply chain performance. Finally, the paper recommends several significant practical implications and policy-making insights for managers and policymakers.
format Article
author Memari, Ashkan
Ahmad, Robiah
Abdul Rahim, Abd. Rahman
Jokar, Mohammad Reza Akbari
author_facet Memari, Ashkan
Ahmad, Robiah
Abdul Rahim, Abd. Rahman
Jokar, Mohammad Reza Akbari
author_sort Memari, Ashkan
title An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
title_short An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
title_full An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
title_fullStr An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
title_full_unstemmed An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
title_sort optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies
publisher Springer Verlag
publishDate 2018
url http://eprints.utm.my/id/eprint/86627/
http://dx.doi.org/10.1007/s10098-017-1461-7
_version_ 1680321073398153216
score 13.211869

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