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Energy crop supply in France: a min-max regret approach

Author

Listed:
  • A O Kazakçi

    (Université Paris Dauphine)

  • S Rozakis

    (Agricultural University of Athens)

  • D Vanderpooten

    (Université Paris Dauphine)

Abstract

This paper attempts to estimate energy crop supply using a linear programming (LP) model comprising hundreds of representative farms of the arable cropping sector in France. In order to enhance the predictive ability of such a model and to provide an analytical tool useful to policy makers, interval linear programming is used to formalize bounded rationality conditions. In the presence of uncertainty related to yields and prices, it is assumed that the farmer may adopt a min-max regret (MMR) criterion as an alternative to the classic profit maximization criterion. Recent advances in operational research are exploited, permitting an efficient implementation of the min-max criterion within an LP model. Model validation based on observed activity levels suggests that about 40% of the farms adopt the MMR criterion. Energy crop supply curves generated by the MMR model prove to be upward-sloped, like classic LP supply curves.

Suggested Citation

  • A O Kazakçi & S Rozakis & D Vanderpooten, 2007. "Energy crop supply in France: a min-max regret approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(11), pages 1470-1479, November.
    • Handle: RePEc:pal:jorsoc:v:58:y:2007:i:11:d:10.1057_palgrave.jors.2602284
    DOI: 10.1057/palgrave.jors.2602284
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    Cited by:

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    2. Jungho Park & Hadi El-Amine & Nevin Mutlu, 2021. "An Exact Algorithm for Large-Scale Continuous Nonlinear Resource Allocation Problems with Minimax Regret Objectives," INFORMS Journal on Computing, INFORMS, vol. 33(3), pages 1213-1228, July.
    3. Stelios Rozakis, 2010. "Hybrid linear programming to estimate CAP impacts of flatter rates and environmental top-ups," Working Papers 2010-03, Agricultural University of Athens, Department Of Agricultural Economics.
    4. Carlo Giupponi & Francesco Bosello & Andrea Povellato, 2007. "A Review of Recent Studies on Cost Effectiveness of GHG Mitigation Measures in the European Agro-Forestry Sector," Working Papers 2007.14, Fondazione Eni Enrico Mattei.
    5. Bartoli, A. & Cavicchioli, D. & Kremmydas, D. & Rozakis, S. & Olper, A., 2016. "The impact of different energy policy options on feedstock price and land demand for maize silage: The case of biogas in Lombardy," Energy Policy, Elsevier, vol. 96(C), pages 351-363.
    6. Bartoli, Andrea & Hamelin, Lorie & Rozakis, Stelios & Borzęcka, Magdalena & Brandão, Miguel, 2019. "Coupling economic and GHG emission accounting models to evaluate the sustainability of biogas policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 106(C), pages 133-148.
    7. Rozakis, Stelios, 2011. "Impacts of flatter rates and environmental top-ups in Greece: A novel mathematical modeling approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    8. Mavrotas, George & Diakoulaki, Danae & Florios, Kostas & Georgiou, Paraskevas, 2008. "A mathematical programming framework for energy planning in services' sector buildings under uncertainty in load demand: The case of a hospital in Athens," Energy Policy, Elsevier, vol. 36(7), pages 2415-2429, July.
    9. Reidsma, Pytrik & Janssen, Sander & Jansen, Jacques & van Ittersum, Martin K., 2018. "On the development and use of farm models for policy impact assessment in the European Union – A review," Agricultural Systems, Elsevier, vol. 159(C), pages 111-125.
    10. Ram, Camelia, 2020. "Scenario presentation and scenario generation in multi-criteria assessments: An exploratory study," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    11. Fabio Furini & Manuel Iori & Silvano Martello & Mutsunori Yagiura, 2015. "Heuristic and Exact Algorithms for the Interval Min–Max Regret Knapsack Problem," INFORMS Journal on Computing, INFORMS, vol. 27(2), pages 392-405, May.
    12. Aissi, Hassene & Bazgan, Cristina & Vanderpooten, Daniel, 2009. "Min-max and min-max regret versions of combinatorial optimization problems: A survey," European Journal of Operational Research, Elsevier, vol. 197(2), pages 427-438, September.
    13. Roy, Bernard, 2010. "Robustness in operational research and decision aiding: A multi-faceted issue," European Journal of Operational Research, Elsevier, vol. 200(3), pages 629-638, February.
    14. Stelios Rozakis, 2010. "Positive multi-criteria models in agriculture for energy and environmental policy analysis," Working Papers 2010-04, Agricultural University of Athens, Department Of Agricultural Economics.

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    More about this item

    Keywords

    interval linear programming; min-max regret; energy crops; France;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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