A Net-Zero Multi-Criteria Decision-Making Model to Mitigate Excessive Costs in The Petrochemical Industry
Open Access DepositedThe industrial revolution kick started the advancement of human capabilities and pushed the known limits to mankind, but since the beginning gradually and unknowingly the world has been facing many difficulties with climate change. Since then, the understanding and studying of the environmental effects caused by the energy sector has been understood today more than ever. The energy sector is responsible for 75% of greenhouse gas emissions globally. As a result, the Paris agreement of 2015 was established which makes the countries a total of 196 parties legally binded on climate change to achieve net-zero by the year 2050. This commitment for the energy sector around the world is confronted by a significant problem which is trying to make a shift towards net-zero solutions, however current solutions are costly. This Praxis focuses on the fossil fuels and petrochemical industries and the intricate decision-making obstacles by proposing a Multi-Criteria Decision Making (MCDM) approach which concurrently combines financial models, technological risk, and regulatory risks. This Praxis will focus on the problem statement The petrochemical industries contribute to 75% greenhouse gas emissions, resulting in excessive overspending to achieve net-zero. The goal of the Praxis is to formulate the MCDM model that would be able to allocate funds for the development of carbon capture and renewable energy technologies, which over the years has been unconventionally neglected in the industry. Furthermore, the Praxis Thesis Statement is Employing Multi-Criteria Decision Making is crucial to effectively mitigate the slow and costly transition to net-zero emissions in the petrochemicals industry. This Praxis addresses the real methodological inadequacies of existing decision-making approaches that never thoroughly consider market factors, sustainability, and carbon costs. The goal of this Praxis is to construct a static model that would allow predicting finances, measuring environmental impact, as well as accounting for changing market conditions and tax on carbon emissions, using data available that will be employed through a hybrid AHP-TOPSIS MCDM model, this will allow the decision makers that will adapted to the new global requirement to select the most suitable project and technology at the lowest cost. This framework will provide energy and finance managers with precise calculations and will enhance the quality of their strategies to minimize the transition costs as well as enhance the chances of achieving net-zero.
- All rights reserved
Notice to Authors
If you are the author of this work and you have any questions about the information on this page, please use the Contact form to get in touch with us.