Campus Units

Industrial and Manufacturing Systems Engineering

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

2-1-2018

Journal or Book Title

Energy

Volume

145

First Page

557

Last Page

566

DOI

10.1016/j.energy.2018.01.015

Abstract

This paper proposes an agent-based simulation model to study the biomass supply contract pricing and policy making in the biofuel industry. In the proposed model, the agents include farmers and a biofuel producer. Farmers' decision-making is assumed to be profit driven, which is formulated as a mixed-integer optimization model, and the biofuel producer's pricing decision is represented with a linear equation with an objective to maximize profits. A case study based on Iowa has been developed to analyze the interactions between the stakeholders and assist determination of the optimal pricing equation for the biofuel producer. Simulation results show that under such a pricing strategy, the biofuel producer can achieve higher profitability than using a fixed price. The impact of government environmental regulations on farmers' decision-making and biomass supply has also been analyzed, and managerial insights have been derived.

Comments

This is a manuscript of an article published as Huang, Shiyang, and Guiping Hu. "Biomass supply contract pricing and environmental policy analysis: A simulation approach." Energy (2018). doi:10.1016/j.energy.2018.01.015. Posted with permission.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Copyright Owner

Elsevier, B.V.

Language

en

File Format

application/pdf

Available for download on Friday, February 01, 2019

Published Version

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