A novel supply chain of straw briquette fuel and the optimal way to acquire fixed assets

• Published in: Energy policy 2021-06, Vol.153, p.112246, Article 112246
• Main Authors: Wang, Dongji, Liu, Liansheng, Liu, Chunyu, Xie, Jun, Yuan, Ye, Yang, Hua, Duan, Runze
• Format: Article
• Language: English
• Subjects: Assets; Briquets; China rural; Discount rates; Emissions control; Energy; Energy development; Energy policy; Entropy; Entropy weight method; Fixed assets; Fossil fuels; Greenhouse gases; Heating; Interest rates; Loans; Net present value method; Operating leases; Optimal way; Present value; Purchasing; Service stations; Space heating; Straw; Straw briquette; Supply; Supply chains
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2021.112246

Space heating using straw briquette fuel in China rural is an important method to replace fossil fuels and reduce greenhouse gas emissions. However, the price of straw briquette fuel is high in traditional supply chain. Therefore, a novel closed-loop supply chain centered on energy service station is proposed. An appropriate way to acquire fixed assets can promote the rapid development of energy service station. In order to find a better solution, the methods of net present value and entropy weight are adopted. The results show that the priority order for small-scale energy service station is operating lease (OL), purchasing with loans (PL), purchasing with own fund (PF) and financial lease (FL), while that for large-scale energy service station is PL, OL, PF, FL. The results indicate that for small-scale energy service station, the optimal way to acquire fixed assets is affected by loan interest rate, rent interest rate and discount rate, while for large-scale energy service station, the optimal way to acquire fixed assets is mainly affected by loan interest rate, and the discount rate and rent interest rate have a negligible influence on the decision. •A novel closed-loop supply chain centering on ESS is proposed.•Optimal way to acquire fixed assets is present for different scale ESS.•Operating lease is the optimal way to acquire fixed for small-scale ESS.•Purchasing with loans is the optimal way to acquire fixed for large-scale ESS.