Technology upgrades are a central lever for sustainability, yet many optimization models primarily account for use-phase emissions and treat embodied impacts and technological change exogenously. We propose a multi-period mixed-integer optimization framework that couples upgrade timing, technology choice, and operations with a life-cycle assessment (LCA) structure. The model (i) separates use-phase and embodied impacts at the transition level, (ii) supports time-weighted valuation of impacts through a flexible weighting sequence (time value of carbon), and (iii) incorporates endogenous learning-by-doing that can reduce both investment costs and embodied impacts of future upgrades. We derive an exact Benders (L-shaped) decomposition that separates discrete upgrade dynamics from a linear operating subproblem. Computational experiments illustrate model behavior and report runtimes under an outer-loop implementation with open-source solvers, highlighting that decomposition becomes most beneficial when extensions substantially enlarge the dispatch layer (e.g., scenario expansion). Experiments also show that ignoring embodied impacts can mis-rank upgrade schedules and even violate life-cycle caps, that stronger time-weighting pushes upgrades earlier, and that learning can make staged upgrades economically preferable.

Caramia, M. (2026). A Life-Cycle Technology Upgrade Scheduling Model. ALGORITHMS, 19(3) [10.3390/a19030223].

A Life-Cycle Technology Upgrade Scheduling Model

Caramia, Massimiliano
2026-01-01

Abstract

Technology upgrades are a central lever for sustainability, yet many optimization models primarily account for use-phase emissions and treat embodied impacts and technological change exogenously. We propose a multi-period mixed-integer optimization framework that couples upgrade timing, technology choice, and operations with a life-cycle assessment (LCA) structure. The model (i) separates use-phase and embodied impacts at the transition level, (ii) supports time-weighted valuation of impacts through a flexible weighting sequence (time value of carbon), and (iii) incorporates endogenous learning-by-doing that can reduce both investment costs and embodied impacts of future upgrades. We derive an exact Benders (L-shaped) decomposition that separates discrete upgrade dynamics from a linear operating subproblem. Computational experiments illustrate model behavior and report runtimes under an outer-loop implementation with open-source solvers, highlighting that decomposition becomes most beneficial when extensions substantially enlarge the dispatch layer (e.g., scenario expansion). Experiments also show that ignoring embodied impacts can mis-rank upgrade schedules and even violate life-cycle caps, that stronger time-weighting pushes upgrades earlier, and that learning can make staged upgrades economically preferable.
2026
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore MAT/09
Settore MATH-06/A - Ricerca operativa
English
mixed-integer linear programming; technology upgrade; benders’ decomposition
https://www.mdpi.com/1999-4893/19/3/223
Caramia, M. (2026). A Life-Cycle Technology Upgrade Scheduling Model. ALGORITHMS, 19(3) [10.3390/a19030223].
Caramia, M
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/456314
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