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Allocating Shadow Prices in a Multi-objective Chance Constrained Problem of Biodiesel Blending

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Multicriteria Analysis in Agriculture

Part of the book series: Multiple Criteria Decision Making ((MCDM))

Abstract

Biodiesel can be produced from different vegetable oils and the choice of the blend (mix of oils) to be used for biodiesel production has an important impact on its cost and environmental performance. This chapter presents a model that determines the optimal blend that minimizes production costs and GHG emissions and assesses the influence of technical constraints on the decision objectives. For this purpose, an algorithm for the allocation of shadow prices to the constituent parts of the composite objective function was implemented. The technical constraints in the model control biodiesel properties based on the feedstock’s chemical composition, taking into account inherent compositional uncertainty. The information obtained from the shadow prices allowed the identification of which technical constraint limits GHG reduction and cost effectiveness. Thus, the model can be used for evaluating the effects of technical progress or policy mandatory measures relatively to the cost and GHG emissions of the biodiesel production process.

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Acknowledgements

Carla Caldeira acknowledges financial support from the Portuguese Science and Technology Foundation (FCT) through grant SFRH/BD/51952/2012. This work has also been supported by FCT project FEDER/FCT|PTDC/AAG-MAA/6234/2014 (POCI-01-0145-FEDER-016765). The research presented in this article has been developed under the framework of Energy for Sustainability Initiative of the University of Coimbra and the MIT Portugal Program. Stelios Rozakis acknowledges financial support from BioEcon project (ID: 669062) financed from the EU H2020-WIDESPREAD-2014-2 program.

Author information

Authors and Affiliations

  1. ADAI-LAETA Department of Mechanical Engineering, Faculty of Sciences and Technology, University of Coimbra, Coimbra, Portugal

    Carla Caldeira & Fausto Freire

  2. INESC Coimbra and CeBER, Faculty of Economics, University of Coimbra, Coimbra, Portugal

    Luis Dias

  3. Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Athens, Greece

    Dimitris Kremmydas

  4. School of Environmental Engineering, Technical University of Crete, Chania, Greece

    Stelios Rozakis

  5. Department of Bioeconomy and Systems Analysis, Institute of Soil Science and Plant Cultivation, Pulawy, Poland

    Stelios Rozakis

Authors
  1. Carla Caldeira
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  2. Luis Dias
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  4. Dimitris Kremmydas
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  5. Stelios Rozakis
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Corresponding author

Correspondence to Carla Caldeira .

Editor information

Editors and Affiliations

  1. Department of Agricultural Economics, University of Cordoba, Cordoba, Spain

    Julio Berbel

  2. Department of Agricultural Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece

    Thomas Bournaris

  3. Department of Agricultural Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece

    Basil Manos

  4. Decision Support Systems Laboratory, Technical University of Crete, Chania, Greece

    Nikolaos Matsatsinis

  5. Department of Agricultural and Food Sciences, University of Bologna, Bologna, Italy

    Davide Viaggi

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Caldeira, C., Dias, L., Freire, F., Kremmydas, D., Rozakis, S. (2018). Allocating Shadow Prices in a Multi-objective Chance Constrained Problem of Biodiesel Blending. In: Berbel, J., Bournaris, T., Manos, B., Matsatsinis, N., Viaggi, D. (eds) Multicriteria Analysis in Agriculture. Multiple Criteria Decision Making. Springer, Cham. https://doi.org/10.1007/978-3-319-76929-5_5

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