Abstract
The most significant international issue affecting society and the economy today is energy. Also, addressing sustainability issues, including environmental, economic, and social issues are the main goals of governments in developing and developed countries. Therefore, it has been in the interest of governments to consider strategies that could move the energy industry, especially fuel, towards clean fuel production. In this paper, the effect of government financial interventions under the coalition of bio-refineries to achieve sustainability goals has been studied. The proposed nonlinear model aims to obtain the optimum amount of biofuel production under the conditions of the cooperation of bio-refineries and government financial interventions. On the other hand, government sustainability goals are considered as functions related to economic, social, and environmental issues. Mulvey’s robust approach is employed for controlling model uncertainties. For finding the best tariff policy, the MULTIMOORA approach is used by considering sustainability considerations, and the Best-Worst Approach is followed in obtaining the weights of the criteria. Furthermore, for the best tariff policy in a general coalition, sharing the profits among the bio-refineries as players in a cooperative game, fair profit distribution methods were applied. Finally, managerial results were presented by a sensitivity analysis of the tariff parameter.
Highlights
Nowadays, energy is the most sensitive issue in the world, which is encompassing environmental, economic, and social aspects of sustainability [1]
We review some of the studies that are related to uncertainty in the biofuel SUPPLY CHAIN (SC) are as follows: Sharma et al [47] presented an integrated approach for assessing the optimum SC of biofuels, taking into account the uncertainty of biomass yield
The weights of the criteria according to Best-Worst Method (BWM) method will be as Table 9: For determining the best government tariff strategy by considering sustainability factors such as economic, environmental, and social factors, the MULTIMOORA approach is applied to select the best strategy regarding the weights obtained from the BWM technique
Summary
Energy is the most sensitive issue in the world, which is encompassing environmental, economic, and social aspects of sustainability [1]. The main drawback of the first-generation biofuel is the resulting food versus fuel competition caused by production using edible parts of the crop as the feedstock for biomass, which can lead to a global increase in food prices and significantly affect human well-being [12]. Some studies have been carried out to measure, analyze, monitor, and reduce production-related GHG emissions to overcome such a hurdle by concentrating on different biofuel manufacturing processes. An environmentally sustainable supply chain of biofuels (BSC) would unlock the full potential of that renewable source of energy. The main contribution of this research is investigating the effect of interventions by governments and policymakers on the price of biofuel and output quantities of bio-refineries under the coopetition of bio-refineries to achieve sustainability aspects like economic, environmental, and social welfare.
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