Multiobjective optimization and marginal pollution abatement cost in the electricity sector – an Israeli case study

The multiple objective optimization models for capacity expansion problem of power generation system in the long run as a base for setting up the marginal abatement cost were examined. In the optimization model the objective function is considered as the weighted sum of several objective functions. Air pollutants are taken into account in both the objective function and the constraints. Different scenarios of pollutant reduction were analyzed. The periods of the years 2003–2013 were taken into account and the results are based on the real data of the Israel electricity sector. Several environmental policies were considered by using the CAPEX system to evaluate the environmental and economic deficiencies in different abatement cost scenarios. The following are obtained: abatement cost for each pollutant, amount of emissions and additional cost connected with the pollutants. Modern decision tools are implemented, such as data envelopment analysis and reasonable goal method/interactive decision maps technique as a base for decision-makers to make decisions on energy and environmental policy.