Journal of Economic Modeling Research

In recent years, the sudden increase in environmental awareness has resulted in more attention to this sector. On this basis, the economic load distribution models, that previously observed merely the minimization of the cost of production and determination of optimal arrangement of producers based on minimization of the total cost, are now facing a fundamental change in execution and modeling. Based on this, the optimal arrangement of producers will now be determined based on two objectives of a minimum cost of production and a minimum environmental pollution. Obviously, with the situation in mind, the problem changes from a single- objective one to a multi-objective problem. The present study takes into account the question of optimal economic and environmental distribution, and its goal is to determine the optimal arrangement of producers in a situation where both the economic and environmental objectives are achieved. The model has been implemented by E-Constraint algorithm. The modeling in this study has been performed for the practical development in Esfahan Electricity Inc. market, in 2012. The results from this model show that the real performance of the market is different from the economic and environmental optimums. The results show the fact that because of the disregard for the environmental costs, the real deviation of performance from the optimum condition is practically much more serious and extensive in the environmental sector.