Informs Annual Meeting 2017

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INFORMS Houston – 2017

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company. We find the scenarios when green technologies are preferred over end- of-pipe abatement solutions by firms and vice versa. We identify the regulation parameters that minimize local and global emissions. 2 - Environmental Taxes and Green Technology Choice: The Impact of Competition and Consumer Awareness Arda Yenipazarli, Assistant Professor of Operations Management,

372F Optimization, Integer Programming Contributed Session Chair: Han Liu, UIUC, Champaign, IL, United States, 407049583@qq.com 1 - Alternative Modelings for the Hub Location Problem with Discrete Transportation Cost Milad Keshvari Fard, ESSEC Business School, 3 Avenue Bernard Hirsch, Cergy, 95021, France, milad.keshvarifard@essec.edu, Laurent Alfandari In many real world problems, the transportation cost is better approximated as a function of the number of vehicles required, than a linear function of load. In this research we study the Hub Location Problem with discrete costs and show that the location/allocation decisions found under a linear cost function could be significantly different than those found with a discrete cost function. We analyze the resulting optimality gap if a linear cost is used. We show that by choosing a proper linear cost function specific to the problem’s data, we can obtain solutions close to those found by a discrete cost function, while avoiding the higher computational complexity. 2 - Relaxations of Discrete Sets with Semicontinuous Variables Gustavo Angulo, Assistant Professor, Pontificia Universidad binary or integrality constraints appearing in combinatorial optimization problems. For knapsacks and a class of single-node flow sets, we consider relaxations involving unbounded semicontinuous variables. We analyze the complexity of linear optimization over such relaxations and provide descriptions of their convex hulls in terms of linear inequalities and extended formulations. 3 - Complete Efficient Frontier of Multi-objective Multi-constrained Separable Nonlinear Optimization Problems Yoshiko.Hanada, Ms., Kansai University, 3-3-35, Yamate-cho, Suita, Osaka, 564-8680, Japan, hanada@kansai-u.ac.jp, Yuji Nakagawa, Chanaka Edirisinghe Improved Surrogate Constraint (ISC) Method is an enumeration technique to find an exact optimal solution of separable discrete optimization problems with multiple constraints, referred to as a multidimensional nonlinear knapsack (MNK) problem, We introduce a new technique based on the ISC method for finding all efficient solutions for the multi-objective case. Our computational experiments demonstrate the superiority of the proposed method relative to existing algorithms in both speed and accuracy. Also, an application in financial engineering is reported. 4 - First Responder Planning under Hypercube Queuing Equilibrium, Disruption and Cooperation Han Liu, Ph.D Visiting Student, UIUC, 205 Mathew, Champaign, IL, 61801, United States, 407049583@qq.com, Jian Wang, Yanfeng Ouyang This talk presents a mixed-integer non-linear program (MINLP) model that integrates hypercube queuing equilibrium, probabilities service disruptions and responder cooperation. Numerical experiments and an empirical case study show applicability of the proposed models. It is shown that cooperative dispatch of responders can potentially reduce expected system-wide costs. 381A Green Technology Development & Adoption: Environmental Regulation, Competition and Green Consumerism Sponsored: Energy, Natural Res & the Environment Environment & Sustainability Sponsored Session Chair: Arda Yenipazarli, ayenipazarli@georgiasouthern.edu 1 - The Impact of Environmental Regulations on Facilities Decisions: When to Invest in Green Technology and End-of-pipe Abatement Nazli Turken, Cleveland State University, 1860 East 18th St. BU 544, Cleveland, OH, 44117, United States, n.turken@csuohio.edu, Vedat Verter, Janice E.Carrillo We analyze the effect of different environmental regulations such as emissions tax, emissions trading, and command-and-control, on the facilities, green technology, and end-of-pipe emissions abatement investment decisions of a Católica de Chile, Avenida Vicuña Mackenna 4860, Macul, Santiago, 7820436, Chile, gangulo@ing.puc.cl A variable is said semicontinuous if its domain is given by the union of two disjoint nonempty closed intervals. As such, they can be regarded as relaxations of TE78

Georgia Southern University, 2224 College Of Business Administration, Statesboro, GA, 30460, United States, ayenipazarli@georgiasouthern.edu

There are many situations where policy makers would like to induce firms to make a major discrete conversion in production technology to reduce emissions intensity of their production processes. We study the impact of emissions tax on the choice of abatement technology in a competitive market, where two profit- maximizing firms facing price- and emissions intensity-dependent demand decide on whether to convert to a pollution-abatement technology and price in response to the tax set by the regulator. On the demand side, customers exhibit horizontal differentiation for product feature and vertical differentiation for emissions intensity reductions achieved by abatement technology adoption. 381C Use and Enhance Energy Models to Get Insightful Results Sponsored: Energy, Natural Res & the Environment, Energy Sponsored Session Chair: Denis Lavigne, PhD, Royal Military College Saint-Jean, 29, rue Louis-Frechette, St-Jean-sur-Richelieu, QC, J2W 1E9, Canada, denis.lavigne@cmrsj-rmcsj.ca 1 - An Ensemble Approach to Forecast Electricity Day Ahead Auction Prices: Experiences from the Turkish Market Ezgi Avci-Surucu, Rotterdam School of Management, Technology and Operations, Management Department, Rotterdam, 3062 PA, Netherlands, avcisurucu@rsm.nl, Wolfgang Ketter, Eric Van Heck Despite the great diversity of electricity price forecasting methods, there are still many forecasting challenges that a bidder has to take into account, such as whether to use individual models on their own, rather than in ensemble, the multi-seasonality problem and how to select appropriate exogenous variables. We address these challenges by using a detailed market-level data from the Turkish electricity day-ahead auctions, which is an interesting research setting in that it presents a number of challenges for forecasters. We examine the key distinguishing features of this market which then allows us to propose individual and ensemble forecasting models that are particularly well suited to it. 2 - Energy Development Pathways to Reach Mexico’s Climate Change Goals Rodrigo Mercado Fernandez, University of Massachusetts Amherst, 65 McClellan Street, Amherst, MA, 01002, United States, rodmerfdez@gmail.com This paper examines the generation expansion planning (GEP) problem in the Mexican Electrical Grid while considering long term national emissions goals. We will compare results from high level top-down studies, produced by Integrated Assessment Models, with more detailed bottom-up approaches, to inform the feasibility and the requirements for the development of Mexico’s electricity portfolio. We will identify the common characteristics for development of the different portfolios, be it generation technologies, critical areas of infrastructure development and investment, or policy measures. 3 - Advances in Modeling Increasingly Integrated North American Natural Gas and Power Markets Robert Brooks, President, RBAC Inc, 4020 Magnolia, Suite B, Burbank, CA, 91505, United States, robert.brooks@rbac.com In addition to growth of wind and solar in the generation mix, abundant supplies of low cost natural gas have begun to supplant coal as North American electricity generation’s primary fuel source. Yet there are numerous challenges involved in the integration of these disparate technologies and markets. Computer modeling tools have been around for decades to assist understanding the natural gas and power markets. However, these models focus on their own respective markets using simplistic assumptions about the other. My presentation will show techniques my colleagues and I have developed for more realistic combined modeling of increasingly integrated North American natural gas and power markets. TE80

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