Performance Evaluation of coal enterprises energy conservation and reduction of pollutant emissions base on GRD-TOPSIS

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1 Avalable onlne at Energy Proceda 5 (2011) IACEED2010 Performance Evaluaton of coal enterprses energy conservaton and reducton of pollutant emssons base on GRD-TOPSIS Gao Yan *, Zhang Lng, Zhou Dequn College of Economcs and Management, Nanjng Unversty of Aeronautcs and Astronautcs, Nanjng, , Jangsu, Chna Abstract For the performance evaluaton of coal enterprses energy conservaton and reducton of pollutant emsson, a new GRD-TOPSIS method s proposed. By analyzng the background of performance evaluaton of energy conservaton and reducton of pollutant emsson, the performance evaluaton system of coal enterprses s establshed. Three coal enterprses of Yanzhou Cty are selected as evaluaton objects, and use the new method to evaluate ther performance of energy conservaton and reducton of pollutant emsson. The practcal example shows the feasblty and effectveness of the proposed method Publshed by Elsever Ltd. Open access under CC BY-NC-ND lcense. Selecton andpeer-revew underresponsblty of RIUDS Keywods: GRD-T OPSIS; MADM; energy conservaton and reducton of pollutant emsson 1. Introducton In recent years, Chnese government has put emphass on the resources and envronmental protecton, therefore, energy conservaton and reducton of pollutant emsson becomes an mportant job among government departments. Under ths condton, our government has ssued relevant laws and regulatons, and as the polcy executor, entrepreneur especally coal enterprses receve more concerns gradually for ther performance evaluaton of energy conservaton and reducton of pollutant emsson. However, up to now, our government, as for energy conservaton and reducton of pollutant emsson, stll does not establsh an authortatve performance evaluaton system for coal enterprses, and stll does not fnd out * Correspondng author. Tel.: ; fax: E-mal address: gy_magge@163.com Publshed by Elsever Ltd. do: /j.egypro Open access under CC BY-NC-ND lcense.

2 536 Gao Yan et al. / Energy Proceda 5 (2011) methods to evaluate the performance. So, coal enterprses are passve n dealng wth energy conservaton and reducton of pollutant emsson, whch s adverse to the management of energy conservaton. At the data weghtng and aggregaton stage, mult-attrbute decson makng (MADM) has recently ganed much popularty n performance evaluaton. MADM s a well-establshed technque that could gude/help decson makers to evaluate exstng or potental alternatves wth multple conflct crtera (Fguera, Greco, &Ehrgott, 2005). In the past decades, MADM has been contnuously studed and successfully appled n many applcaton domans. Examples of recent MADM studes nclude Tzeng, Chang, and L(2007), Wu and Lee(2007). TOPSIS s the most effect ve tool n MA DM. Ths paper s an extenson to TOPSIS. Co mbnng the gray correlaton degree (GRD) wth TOPSIS, a new GRD-TOPSIS method s proposed. By ths new method, ths paper evaluates the performance of coal enterprses energy conservaton and reducton of pollutant emsson. 2. GRD-TOPSIS method Let an alternatve set be X { x1, x2,, x m, an ndex set s C { c1, c2,, c n and evaluaton value [ uj, uj ] s nterval fuzzy number. Accordng to the standardzed formula of fuzzy decson matrx, we standardze the evaluaton value as follow: For the effcency ndcators uj mn { uj uj mn { uj 1 1 aj, a j. (1) mn { uj max { uj mn { uj For the cost ndcators uj max { uj uj 1 1 aj, a j. (2) mn { uj max { uj mn { uj Accordng to algorthm of nterval fuzzy numbers, we can calculate the expectatons of the nterval 1 numbers ( aj aj aj ). In order to make a better evaluaton results, we use gray correlaton degree 2 (GRD) and TOPSIS method to gve the order of expectatons matrx. Determne the postve deal soluton: R {max a ( a (1), a (2),, a ( n)) ; (3) 1 j Determne the negatve deal soluton: R {max aj ( a0(1), a0(2),, a0( n)) ; (4) 1 Calculate gray correlaton degree (GRD) between the expected value and the postve (negatve) deal soluton: mn mn a 0( ) aj( ) max max a 0 () aj( ) j j ( a0 ( ), aj ( )), (5) a 0( ) aj( ) maxmax a 0( ) aj( ) j mn mn a 0( ) aj( ) max max a 0 () aj( ) j j ( a0 ( ), aj ( )). (6) a 0( ) aj( ) maxmax a 0( ) aj( ) j We can get the vector of the GRD:

3 Gao Yan et al. / Energy Proceda 5 (2011) V ( V1,, V m ), V ( V1,, V m ). (7) At last, calculate the grey relatve closeness: C V. (8) V V Accordng to the value of ( C1, C2,, C m), we know the order of X. 3. Performance evaluaton system for coal enterprses As far as energy producton and energy consumpton are concerned, Chna now s the second n the world, and has had an ndspensble part n the world energy market. Chna s playng more and more mportant role to protectng the safe of the world energy. Because our economy and ndustralzaton are n the hgh speed, the supply and demand of the energy has appeared some contradctons. In addton, our country has the extensve mode of producton, that s, hgh nput, low output and hgh polluton, whch leads to a large number of shortages and serous polluton of the envronment. As the above, our country must adopt effcent methods of energy conservaton and reducton of pollutant emsson to change the status. Energy conservaton s the polcy to mplement our sustanable development; meanwhle, reducton of pollutant emsson s the mportant method to realze energy conservaton. Energy conservaton and reducton of pollutant emsson refers to conserve the energy and decrease the polluton emsson, ncludng wasted gas, wasted water and garbage. Energy conservaton and reducton of pollutant emsson can not only mprove the effcency of the natonal economy, but also decrease the fees of the envronmental polluton, the greenhouse gas emsson and the envronmental governance, whch can let exstng resources lower the depleton speed maxmally to safeguard natonal securty. In the 2009 s Clmate Change Conference n Copenhagen, our premere Wen Jabao proposes that, from 1990 to 2005 the CO 2 emsson of Unt of GDP has decreased 46%. On ths bass, compared wth the year of 2005, n the year of 2020 the emsson level wll decrease from 40% to 45%. In the Twelfths Fve-Year Plan proposed by the CPC Central Commttee, our government sgnfcantly ncreases the constructon of non-fossl energy sources. In 2020, our country wll establsh 180 mllon klowatts of wnd power, 20,000,000 klowatts of solar energy, 330 mllon klowatts of hydropower, and 90 mllon klowatts of nuclear power. Up to then, the nstalled capacty of tradtonal coal unts, ts proporton wll decrease from 75% to 60%. From the above, we can see energy conservaton and reducton of pollutant emsson s a long-term and arduous task whch needs us to have a hard effort. Coal enterprses, whch are the subject of energy consumpton and the man source of polluton emsson, shoulder the mportant task of energy conservaton and reducton of pollutant emsson. We need qualtatve descrpton and quanttes analyss to evaluate a coal enterprse s performance on energy conservaton and reducton of pollutant emsson. Thus, we need to establsh a system to scentfcally gude ths performance. Accordng to the characterstcs and connotatons of coal enterprse s performance on energy conservaton and reducton of pollutant emsson, we wll use the methods of movement frequency statstcs and expert consultaton to construct the performance evaluaton system n fve aspects. As followed: (1) resource output. manly reflectng the resource effcency, refers to growth rate of GDP(C 1 ), output rate of mllon tons of coal mned(c 2 ), output rate of coal consumpton(c 3 ), output rate of land(c 4 ) and water resources(c 5 );(2)Resource consumpton, manly reflectng the company's energy savng, refers to the extracton rate(c 6 ), unt GDP energy (water) consumpton(c 7 C 8 ), mnng tons of coal energy (water) consumpton(c 9 C 10 ); (3)Comprehensve utlzaton of resources: the utlzaton rate of Gangue(C 11 ), coal(c 12 ) and assocated mnerals(c 13 ), fly ash(c 14 ), mne water(c 15 ), ndustral water recyclng(c 16 ), the utlzaton rate of methane(c 17 ), land reclamaton(c 18 ); (4) pollutant emsson: emsson reducton rate of

4 538 Gao Yan et al. / Energy Proceda 5 (2011) gangue(c 19 ), coal gangue(c 20 ), coal ash(c 21 ), waste gas(c 22 ), waste water(c 23 ); (5)support ablty: the degree of famlarty wth energy conservaton and reducton of pollutant emsson(c 24 ), the degree of mprovng energy conservaton and reducton of pollutant emsson systems(c 25 ), the degree of mplementaton of emsson reducton measures(c 26 ), energy conservaton rato of R&D fundng(c 27 ), effectveness of R&D actvtes(c 28 ). 4. Performance evaluaton of coal enterprse energy conservaton and reducton of pollutant emsson based on GRD-TOPSIS 4.1. Survey desgn Select 3 coal enterprses of Yanzhou Cty, Shandong Provnce as evaluaton objects, and use sample survey approach to evaluate the performance of energy conservaton and reducton of pollutant emsson. The survey questonnares of 3 coal enterprses performance evaluaton covers 28 ndcators of performance ndcators system. Each ndcator establshes two assessment tems, ncludng the actual value of energy conservaton and reducton of pollutant emsson performance and the maxmum expectaton value of energy conservaton and reducton of pollutant emsson performance. Assessment of the value of each tem provde 7 optons from low to hgh, ncludng, "1" stands performance s poor, "7" stands performance s good. The greater the value s that the better the energy conservaton and reducton of pollutant emsson acheves. For each ndex, we make fuzzy evaluaton of performance by combnng assessed value of two tems. As a result, the performance of the orgnal results s got n the form of nterval numbers. The survey use onlne questonnare survey, and the target s leaders of government departments n charge of energy conservaton and reducton of pollutant emsson, energy experts of unverstes, executves of coal enterprse and coal busness technology analyst. We ssued a total of 200 questonnares, 145 were recovered, and 135 were effectve, recovery of 72.5%, effcency 93.1%. By usng Cranach s coeffcent, the relablty of the questonnare was tested. We calculated the relablty of test results was , accordng to survey data, hgher than 0.8. It ndcated that ths questonnare s a hgh relablty coeffcent table Performance evaluaton Based on three coal companes performance evaluaton results of the questonnare survey and by numercal ntegraton of all assessment tems, the extent of the ndcators evaluaton s gven n the form of nterval numbers. Frst, standardze the nterval numbers and calculate the expectaton a j of the nterval numbers. Second, determne the postve deal soluton R and the negatve deal soluton R. Draw the relatonshp map between coal enterprses A, B, C's performance expectatons and the postve and negatve deal soluton, as shown n the fg. 1. Thrd, calculate gray correlaton between coal enterprses A, B, C's performance expectatons and the postve and negatve deal soluton. The value s V ( , ), V ( ,0.7898). At last, we get the order of the 3 coal enterprses, by calculatng the grey relatve closeness, C (0.5147,0.5249,0.5220), namely B C A. 5. Concluson In concluson, f we want to mprove ts performance on energy conservaton and reducton of pollutant emsson, the coal enterprses must follow these ponts: 1. economcally use coal resources, and

5 Gao Yan et al. / Energy Proceda 5 (2011) Fg. 1. The relatonshp between coal enterprses A, B, C's performance expectatons and the postve (negatve) deal soluton contnuously ncrease coal recovery rate, whch ncludes optmzng the ndustral structure, promotng the development of new energy-savng technologes, and strengthenng the constructon and supervson of relevant systems; 2. Postvely develop the explotaton and utlzaton of CBM and assocated mnerals; 3. Improve the rato of raw coal washed by man, and strengthen the recovery and utlzaton of gangue and ndustral waste; 4. decrease the pollutant emssons, and promote the crcular economy of coal enterprses ncludng developng green mnng technology, water savng technology, non-waste technology, and sound processng technology of mne waste; 5. Establsh the system of coal polygene raton; 6. Implement staff tranng, enhance awareness of energy savng, and mprove the qualty of energy savng to really realze energy savng; 7. Increase research nvestment, strve for government support, and to enhance coal enterprses ablty to support energy savng. Acknowledgements We wsh to thank Pr. Zhou Dequn, Pr. Zhou Peng and Pr. Zhang Lng of Nanjng Unversty of Aeronautcs and Astronautcs. References [1] Fguera, J., Greco, S., &Ehrgott, M. Multple crtera decson analyss: State of the art surveys. New York: Sprnger (2005). [2] Wu, W.W., &Lee, Y.T. Selectng knowledge management strateges by usng the analytc network process. Expert Systems wth Applcatons, (2007) 32. [3] Zhou Peng, Ang, B.W., &Poh, K. L. A mathematcal programmng approach to constructng composte ndcators. Ecologcal Economcs, (2007) 62. [4] Zhou,Peng, Fan Lwe, Zhou Dequn. Data aggregaton n constructng composte ndcators :Aperspectve of nformaton loss. Expert Systems wth Applcatons, 37 (2010) [5] Zha Donglan, Zhou Dequn, Zhou Peng. Drvng forces of resdental CO 2 emssons n urbanan drural Chna: An ndex decomposton analyss. Energy Polcy, 38 (2010) [6] Jahanshahloo G. R, Hossenzadeh Lotf F, Izadkhah M. An algorthmc method to extend TOPSIS for decson-makng problems wth nterval data. Appled Mathematcs and Computaton, 175 (2006) [7] Chen T. Y, Tsao C. Y. The nterval valued fuzzy TOPSIS method and expermental analyss. Fuzzy Sets and Systems, 159 (2008)