IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v32y2010i1p243-255.html
   My bibliography  Save this article

Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices: Comment

Author

Listed:
  • Tehrani Nejad Moghaddam, Alireza

Abstract

The allocation of CO2 emissions of petroleum refineries to their oil products is a necessary step in the retrospective Well-to-Tank (WTT) analysis. These allocated emissions are used to evaluate the environmental impacts of automotive fuels' production within the refinery. Oil refining is a complex joint production system and there exists no simple and unique answer to this allocation question. Recently, Pierru proposed adapting the Aumann-Shapley cost sharing method to deal with this issue. Our paper aims at describing the conceptual and technical difficulties of this adaptation to the WTT context. Moreover, we show that this approach, as proposed by Pierru, is not applicable to any real-type refinery model. Different suggestions are provided to improve its applicability (when it is possible) in real situations. A simple numerical example as well as a real-type refinery case study is provided for illustrations. Finally, we discuss an alternative allocation approach which we believe more adapted to the WTT context.

Suggested Citation

  • Tehrani Nejad Moghaddam, Alireza, 2010. "Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices: Comment," Energy Economics, Elsevier, vol. 32(1), pages 243-255, January.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:243-255
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(09)00176-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tijs, S.H. & Driessen, T.S.H., 1986. "Game theory and cost allocation problems," Other publications TiSEM 376c24c5-c95d-4d29-96b6-4, Tilburg University, School of Economics and Management.
    2. Haimanko, Ori, 2001. "Cost sharing: the nondifferentiable case," Journal of Mathematical Economics, Elsevier, vol. 35(3), pages 445-462, June.
    3. Marcel Boyer & Michel Moreaux & Michel Truchon, 2003. "Partage des coûts et tarification des infrastructures - Tarification optimale des infrastructures communes," CIRANO Project Reports 2003rp-06, CIRANO.
    4. Axel Pierru, 2007. "Short-run and long-run marginal costs of joint products in linear programming," Recherches économiques de Louvain, De Boeck Université, vol. 73(2), pages 153-171.
    5. Bruce A. McCarl, 1977. "Degeneracy, Duality, And Shadow Prices In Linear Programming," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 25(1), pages 70-73, February.
    6. Leonard J. Mirman & Dov Samet & Yair Tauman, 1983. "An Axiomatic Approach to the Allocation of a Fixed Cost Through Prices," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 139-151, Spring.
    7. Marcel Boyer & Michel Moreaux & Michel Truchon, 2003. "Partage des coûts et tarification des infrastructures - Partage des coûts dans l'entreprise et incitations," CIRANO Project Reports 2003rp-05, CIRANO.
    8. Pierru, Axel, 2007. "Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices," Energy Economics, Elsevier, vol. 29(3), pages 563-577, May.
    9. Marcel Boyer & Michel Moreaux & Michel Truchon, 2003. "Partage des coûts et tarification des infrastructures - Le cas des réseaux municipaux souterrains," CIRANO Project Reports 2003rp-04, CIRANO.
    10. S. H. Tijs & T. S. H. Driessen, 1986. "Game Theory and Cost Allocation Problems," Management Science, INFORMS, vol. 32(8), pages 1015-1028, August.
    11. Tehrani Nejad M., Alireza, 2007. "Allocation of CO2 emissions in petroleum refineries to petroleum joint products: A linear programming model for practical application," Energy Economics, Elsevier, vol. 29(4), pages 974-997, July.
    12. Tehrani Nejad Moghaddam, Alireza & Michelot, Christian, 2009. "A contribution to the linear programming approach to joint cost allocation: Methodology and application," European Journal of Operational Research, Elsevier, vol. 197(3), pages 999-1011, September.
    13. Tehrani Nejad Moghaddam, Alireza & Saint-Antonin, Valérie, 2008. "Impact of tightening the sulfur specifications on the automotive fuels' CO2 contribution: A French refinery case study," Energy Policy, Elsevier, vol. 36(7), pages 2449-2459, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castano-Pardo, Alberto & Garcia-Diaz, Alberto, 1995. "Highway cost allocation: An application of the theory of nonatomic games," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 187-203, May.
    2. Boniface Bampoky, 2018. "How to improve the management of the Senegalese public sector companies' performance? [Comment améliorer le pilotage de la performance des entreprises du secteur public sénégalais ?]," Post-Print hal-01907807, HAL.
    3. Pierru, Axel, 2010. "Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices: A reply," Energy Economics, Elsevier, vol. 32(3), pages 746-748, May.
    4. Massol, Olivier & Tchung-Ming, Stéphane, 2010. "Cooperation among liquefied natural gas suppliers: Is rationalization the sole objective?," Energy Economics, Elsevier, vol. 32(4), pages 933-947, July.
    5. Olivier Massol & Stéphane Tchung-Ming, 2009. "Stratégies coopératives dans l'industrie du GNL : l'argument de la rationalisation est-il fondé ?," Working Papers hal-02469480, HAL.
    6. Gao, Evelyn & Sowlati, Taraneh & Akhtari, Shaghaygh, 2019. "Profit allocation in collaborative bioenergy and biofuel supply chains," Energy, Elsevier, vol. 188(C).
    7. Molenbruch, Yves & Braekers, Kris & Caris, An, 2017. "Benefits of horizontal cooperation in dial-a-ride services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 97-119.
    8. Grigoriev, Alexander & Jung, Verena & Peeters - Rutten, Marianne & Vredeveld, Tjark, 2017. "On the Acceptance of Gain Sharing Methods in Supply Chain Collaboration," Research Memorandum 024, Maastricht University, Graduate School of Business and Economics (GSBE).
    9. Delfina Rogowska & Artur Wyrwa, 2021. "Analysis of the Potential for Reducing Life Cycle Greenhouse Gas Emissions from Motor Fuels," Energies, MDPI, vol. 14(13), pages 1-19, June.
    10. Vásquez-Brage, M. & van den Nouweland, C.G.A.M. & García-Jurado, I., 1995. "Owen's coalitional value and aircraft landing fees," Discussion Paper 1995-104, Tilburg University, Center for Economic Research.
    11. Grahn-Voorneveld, Sofia, 2012. "Sharing costs in Swedish road ownership associations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 645-651.
    12. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.
    13. Sophie D'Amours & Mikael Rönnqvist, 2013. "An Educational Game in Collaborative Logistics," INFORMS Transactions on Education, INFORMS, vol. 13(2), pages 102-113, January.
    14. Pickl, Stefan, 2004. "Solving the semismooth equivalence problem," European Journal of Operational Research, Elsevier, vol. 157(1), pages 68-73, August.
    15. Defryn, Christof & Sörensen, Kenneth & Dullaert, Wout, 2019. "Integrating partner objectives in horizontal logistics optimisation models," Omega, Elsevier, vol. 82(C), pages 1-12.
    16. Tehrani Nejad Moghaddam, Alireza & Saint-Antonin, Valérie, 2008. "Impact of tightening the sulfur specifications on the automotive fuels' CO2 contribution: A French refinery case study," Energy Policy, Elsevier, vol. 36(7), pages 2449-2459, July.
    17. Sylvain Béal & André Casajus & Frank Huettner & Eric Rémila & Philippe Solal, 2016. "Characterizations of weighted and equal division values," Theory and Decision, Springer, vol. 80(4), pages 649-667, April.
    18. Juan Aparicio & Joaquín Sánchez-Soriano, 2008. "Depreciation games," Annals of Operations Research, Springer, vol. 158(1), pages 205-218, February.
    19. Salant, David J, 2007. "Formulas for fair, reasonable and non-discriminatory royalty determination," MPRA Paper 8569, University Library of Munich, Germany.
    20. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:243-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.