Pollution and Cost in the Coke-Making Supply Chain in Shanxi Province, China: Applyig an Integrated System Model to Siting and Transportation Trade-Offs

Abstract

An integrated system trade‐off model has been developed to assess costs and pollution associated with transportation in the coke‐making supply chain in Shanxi Province, China. A transportation‐flow, cost‐minimization solver is combined with models for calculating coke‐making plant costs, estimating transportation costs from a geographic information system road and rail database, and aggregating coke‐making capacity among plants. Model outputs of economic cost, nitrogen oxides (NOx) emissions, and transport distributions are visualized using an Internet‐based graphic user interface. Data for the model were collected on survey trips to Shanxi Province as well as from secondary references and proxies. The modularity and extensibility of the system trade‐off model facilitate introduction of new data sets in order to examine various planning scenarios.

Scenarios of coke‐making plant aggregation, rail infrastructure improvement, and technology transfer were evaluated using the model. Costs and pollution emissions can be reduced by enlarging coke‐making plants near the rail stations and closing down other plants. Preferential minimization of transportation costs gives a lower total cost than simply minimizing plant costs. Therefore, policy makers should consider transportation costs when planning the reallocation of coke‐making capacity in Shanxi Province. Increasing rail‐transport capacity is less effective than aggregating plant capacity. On the other hand, transfer of low‐pollution truck technology results in a large emission reduction, however, reflecting the importance of truck transportation in the Shanxi Province coke‐making industry.