Abstract

As oil refining is a multiproduct industrial activity, there are innumerable ways to allocate a refinery’s CO 2 emissions among the various refined products. The linear-programming models used to manage refineries may serve to compute the marginal contribution of each finished product to the CO 2 emissions of the refinery. We show that, under some conditions, this marginal contribution is a relevant means of allocating all the refinery’s CO 2 emissions. The application of this allocation rule leads to interesting results which can be used in a well-to-wheel life cycle assessment. In fact, this allocation rule holds rigorously if the demand equations are the only binding constraints with a non-zero right-hand side coefficient. This is certainly not the case for short-run models with fixed capacity of processing units. To extend the application field of our approach, we therefore suggest three distinct solutions, inspired by economic theory: applying the Aumann–Shapley cost-sharing method, or adapting the Ramsey pricing-formula, or using proportionally-adjusted marginal contributions. A numerical application to a simplified refining model is presented.

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