Linear Programming Model for the Measurement of Environmental Performance in Wine Industry-Concepts and Empirical Results

Abstract

In Taiwan we are currently facing serious air pollution problems, PM2.5 airborne particles not only endanger the human body, leading to coughing, asthma, chronic bronchial and other respiratory diseases, but it is also carcinogenic, our basic rights for survival has been seriously threatened. According to the latest study by the Environmental Protection Agency, the industrial sector accounts for about 25% of the sources of air pollution in Taiwan. The winemaking industry, with raw materials has several stages of production; it must use electricity, water, oil, diesel, gasoline, and steam as energy. The final product is not only wine, but also the discharge wastewater, lees, CO2, waste gas, etc. Different process methods will produce different energy consumption results, thus providing the possibility of CO2 reduction. This study takes the winemaking industry as a case study, trying to find out how to achieve a concept of "win-win situation "for both sides of carbon reduction and economy development. First, aiming at the policy of energy saving and carbon-reduction inventory of winery, trying to find out the source of pollution and the change of pollution source during 2008-2016, and then according to the data, the empirical results are analysed. Finally, a linear programming model proposed for the production planning of winemaking processes to achieve maximum operational profit while reducing CO2 emissions. The options considered in this research are levy the carbon tax in different prices to decrease CO2 emissions; installation of new equipment to enhance capacity; switching production schedule that emits less CO2. The objective of the linear programming model is to determine suitable CO2 mitigation options for a given reduction target while meeting the demand of each final product, quality specifications, and simultaneously maximizing profit. In this research, How to achieve the optimal production goals: minimizing the cost & energy consumption, and the maximum production value become the optimal production objection.