Feasibility evaluation of a biodiesel distribution system using a location-distribution model: a study of the Colombian biofuel policy

Abstract

The Colombian Biofuels Policy defines many aspects of biofuel production but whether the policy is feasible is not known. This paper takes a holistic view of the country-level production and distribution system to evaluate policy feasibility. We formulate the problem as a mixed-integer programming model and analyse the Colombian biodiesel policy given their current infrastructure, feedstock supply and demand. Model results provide several useful insights on how to design the overall system and also to support policy decision-makers. This paper contributes to the literature by analysing how the production-distribution network structure affects the cost and feasibility of biodiesel adoption.