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Sustainable biomass supply chain network design with biomass switching incentives for first-generation bioethanol producers

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  • Haji Esmaeili, Seyed Ali
  • Szmerekovsky, Joseph
  • Sobhani, Ahmad
  • Dybing, Alan
  • Peterson, Tim O.

Abstract

Sustainable energy requires renewable energy sources to reduce reliance on fossil fuels. As a renewable energy source, first-generation bioethanol has been produced from corn. However, the production of such a biofuel increases corn-based food prices resulting in serious food versus fuel debates. Financial incentives would motivate first-generation bioethanol producers switching to second-generation bioethanol production. This study investigates the effects of two financial incentives (incentive payments and emissions penalties) motivating first-generation bioethanol producers to use second-generation biomass. These financial incentives are integrated into linear programming models to maximize the profit of the bioethanol supply chains in the state of North Dakota. Numerical results indicate that first-generation bioethanol production is more efficient than the second-generation bioethanol. Hence, the social value of using corn as a source for food instead of fuel must be at least $2.38/bushel. Furthermore, to switch from the first to the second-generation biofuel production, bioethanol producers must either receive at least an incentive payment of $0.8495 per gallon of second-generation bioethanol or pay at least a penalty of $3.2573 per Kg CO2e emitted due to first-generation bioethanol production. The results of this study support policymaker decisions in developing incentive programs to promote sustainable second-generation bioethanol in the US.

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  • Haji Esmaeili, Seyed Ali & Szmerekovsky, Joseph & Sobhani, Ahmad & Dybing, Alan & Peterson, Tim O., 2020. "Sustainable biomass supply chain network design with biomass switching incentives for first-generation bioethanol producers," Energy Policy, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:enepol:v:138:y:2020:i:c:s0301421519308043
    DOI: 10.1016/j.enpol.2019.111222
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    5. Nikola Sagapová, 2022. "From environmental thinking in economics to bioplastics: promising material for a sustainable (bio)economy," Economics Working Papers 2022-01, University of South Bohemia in Ceske Budejovice, Faculty of Economics.
    6. Ebrahimi, Sajad & Haji Esmaeili, Seyed Ali & Sobhani, Ahmad & Szmerekovsky, Joseph, 2022. "Renewable jet fuel supply chain network design: Application of direct monetary incentives," Applied Energy, Elsevier, vol. 310(C).
    7. Seyed Ali Haji Esmaeili & Ahmad Sobhani & Sajad Ebrahimi & Joseph Szmerekovsky & Alan Dybing & Amin Keramati, 2023. "Location Allocation of Biorefineries for a Switchgrass-Based Bioethanol Supply Chain Using Energy Consumption and Emissions," Logistics, MDPI, vol. 7(1), pages 1-22, January.
    8. Mohd Idris, Muhammad Nurariffudin & Hashim, Haslenda & Leduc, Sylvain & Yowargana, Ping & Kraxner, Florian & Woon, Kok Sin, 2021. "Deploying bioenergy for decarbonizing Malaysian energy sectors and alleviating renewable energy poverty," Energy, Elsevier, vol. 232(C).
    9. Zahra Homayouni & Mir Saman Pishvaee & Hamed Jahani & Dmitry Ivanov, 2023. "A robust-heuristic optimization approach to a green supply chain design with consideration of assorted vehicle types and carbon policies under uncertainty," Annals of Operations Research, Springer, vol. 324(1), pages 395-435, May.
    10. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    11. Islam Hassanin & Matjaz Knez, 2022. "Managing Supply Chain Activities in the Field of Energy Production Focusing on Renewables," Sustainability, MDPI, vol. 14(12), pages 1-33, June.
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