Effective Use of Carbon Pricing on Climate Change Mitigation Projects: Analysis of the Biogas Supply Chain to Substitute Liquefied-Petroleum Gas in Mexico

Abstract

There is presently an urgent demand for efficient and/or renewable energy technologies to correct global warming. However, these energy technologies are limited mainly by political and economic constraints of high costs and the lack of subsidy. Carbon-pricing strategies, such as carbon-emission taxes and carbon-emission trading schemes, may reduce this gap between sustainable and unsustainable energy technologies. Therefore, this paper seeks to analyze both of these carbon-pricing instruments in the Mexican energy sector to promote upgrading biogas investment and to substitute liquified petroleum gas consumption using an optimization approach. Furthermore, we propose a multi-objective optimization approach to encourage investment in the biogas supply chain supported by an effective use of carbon-pricing schemes. A case study of the central western region of Mexico was made to analyze the performance of the proposed methodologies. The results show that carbon-emission taxes and carbon-emission trading systems stimulate, with some limitations, the investment in biogas projects for fossil fuel substitution. Nevertheless, using the proposed multi-objective optimization formulation leads the discovery of a more efficient use of the above-mentioned carbon-pricing schemes, thus reaching higher economic and environmental benefits than traditional carbon-pricing policies, with a lower cost/price per ton of carbon dioxide equivalent.

Decision Optimization of Low-Carbon Dual-Channel Supply Chain of Auto Parts Based on Smart City Architecture

“…Wang and Han established the loss function of perishable products with the goal of reducing carbon emission and total cost and studied the supply chain optimization strategy of location path inventory combination [8]. Díaz-Trujillo et al analyzed the carbon pricing tools of the energy sector in Mexico and found that the carbon tax and the carbon trading system are more conducive to improve economic and environmental benefits than the traditional carbon pricing policy by using the multiobjective optimization formula [9]. Efthymiou and Papatheodorou established a low-cost and low-carbon multiobjective decision-making model and verified that cost reduction and carbon emission reduction can meet the requirements at the same time [10].…”

Research on Intelligent Decision of Low Carbon Supply Chain Based on Carbon Tax Constraints in Human-Driven Edge Computing

“…A feasibility analysis was conducted using Mexico as an example. From the perspective of economic and environmental benefits, it was found that, with the promotion of carbon tax and carbon trading systems, a higher input-output ratio can be achieved by investing in biogas projects [17]. What's easier to overlook is that Kondo R et al considered the carbon leakage caused by the different carbon prices of different countries [18].…”

Special Issue on “Bioenergy Systems, Material Management, and Sustainability”

“…This Special Issue, "Bioenergy Systems, Material Management, and Sustainability", encompasses a combination of contributed articles by a diverse set of worldwide experts in the Americas, Europe, and Asia, focusing on a multitude of concepts and topics. The following topics, along with the manuscript contributions, are addressed in this issue: Bio-based materials and processes [1,2], bioenergy systems optimization, advanced control for sustainability and state estimation [3][4][5][6][7], sustainability, life cycle assessment, and life cycle inventory analyses associated with biosystems and biofuels [8][9][10], sustainable management and valorization of organic/biomass waste, including energy production [11,12], and techno-economic analysis of novel routes for the sustainable utilization and reuse of biomass and waste [13]. Such topics are of great interest and critical relevance to the sustainable development of local, regional, national, and international communities.…”