An Interval Two-stage Stochastic Programming For Management Of SO₂ Emission Quota In Power Plants

The effective allocation of sulfur dioxide quotas is essential for achieving the target of sulfur dioxide emission reduction and National total emission control(TEC).However, the quota allocation process is complicated,duo to various uncertainties in the allocation process.To address this issue,in this paper,Generating Performance Standard(GPS) method is used in the first stage allocation process.Interval-parameter two-stage stochastic programming(ITSP) model is used in the second stage allocation.In the second stage allocation,interval number is introduced to reflect the range of price and the quotas.Meanwhile,economic penality associated with the non-optimal distribution schemes is introduced.The first stage distribution is to meet environmental objective. Based on the first-stage distribution,the second stage distribution is to achieve maximum economic benefit.In this paper,the developed method has been applied to support sulfur dioxide emission quotas allocation among power plants in Beijing. Solutions expressed as interval number are gained and addressed in the allocation process.This study suggests that the proposed method can help decision-makers develop optimal policy of sulfur dioxide quota allocation.