商业化
生物量(生态学)
商品
农业
自然资源经济学
利润(经济学)
经济
生物能源
价值(数学)
环境科学
农业经济学
环境经济学
业务
生物燃料
微观经济学
废物管理
数学
工程类
农学
营销
生态学
市场经济
统计
生物
作者
Bin Li,Onur Boyabatlı,Buket Avcı
出处
期刊:Management Science
[Institute for Operations Research and the Management Sciences]
日期:2023-06-01
卷期号:69 (6): 3561-3577
被引量:1
标识
DOI:10.1287/mnsc.2022.4518
摘要
Motivated by the agricultural industries, this paper studies the economic and environmental implications of biomass commercialization; that is, converting organic waste into a saleable product from the perspective of a processor that uses a commodity input to produce both a commodity output and biomass. We characterize the economic value of biomass commercialization and examine how input and output spot price uncertainties affect this value. Using a model calibration, we find that lower input spot price variability or higher output spot price variability or correlation between the two spot prices increases this value for a typical palm oil mill. To measure the environmental impact, we use total expected carbon emissions resulting from profit-maximizing decisions and characterize the change in total expected emissions after commercialization. Our analysis reveals that, although higher biomass demand or biomass price always increases the value of biomass commercialization, these changes are not necessarily environmentally beneficial as they may increase the emissions associated with biomass commercialization. We also characterize conditions under which biomass commercialization is environmentally beneficial or harmful; that is, it leads to a reduction or an increase in the total expected emissions, respectively. In comparison with the existing understanding which does not take into account optimization of operational decisions, our analysis highlights two types of misconceptions (and characterizes the specific conditions under which they appear): (i) we would mistakenly think that biomass commercialization is environmentally beneficial when it is not, and (ii) we would mistakenly think that biomass commercialization is environmentally harmful when it is not. This paper was accepted by Victor Martínez-de-Albéniz, operations management. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2022.4518 .
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