Incorporating social benefits in multi-objective optimization of forest-based bioenergy and biofuel supply chains

Abstract

Utilization of forest and wood residues to produce bioenergy and biofuels could generate additional revenue streams for forestry companies, reduce their environmental impacts and generate new development opportunities for forest-dependent communities. Further development of forest-based biorefineries entails addressing complexities and challenges related to biomass procurement, logistics, technologies, and sustainability. Numerous optimization models have been proposed for the economic and environmental design of biomass-to-bioenergy or biofuel supply chains. A few of them also maximized the job creation potential of the supply chain through the use of employment multipliers. The use of a total job creation indicator as the social optimization objective implies that all new jobs generate the same level of social benefit. In this paper, we quantify the potential social benefit of new forest-based biorefinery supply chains considering different impacts of new jobs based on their type and location. This social benefit is incorporated into a multi-objective mixed integer linear programming model that maximizes the social benefit, net present value and greenhouse gas emission saving potential of a forest-based biorefinery supply chain. The applicability of the model is illustrated through a case study in the interior region of British Columbia, Canada where different utilization paths for available forest and wood residues are investigated. The multi-objective optimization model is solved using a Pareto-generating method. The analysis of the generated set of Pareto-optimal solutions show a trade-off between the net present value of the supply chain and the other two investigated objectives. Moreover, there is a positive correlation between the potential to generate high impact jobs in the region and its potential to generate greenhouse gas emission savings.