The Application of Strategic Choice Approach (Case Study: Electricity Shortage Problem Caused by Cryptocurrency Mining in Iran)

Journal of Systems Thinking in Practice

دوره 3، شماره 2 - شماره پیاپی 9، شهریور 2024، صفحه 61-92   

نوع مقاله: Research Article

شناسه دیجیتال (DOI): 10.22067/jstinp.2024.87639.1101

نویسندگان

Hasan Arabameri^{* 1}؛ Mansour Momeni²؛ Mahmoud Dehghan Nayeri³

¹Department of Industrial Management, Faculty of Production and Operations, Alborz Campus, University of Tehran, Tehran, Iran.

²Department of Industrial Management, Faculty of Management, University of Tehran,Tehran, Iran.

³Department of Industrial Management, Faculty of Management and Economics, Tarbiat Modares University,Tehran, Iran.

چکیده

The continuous and round-the-clock operation of cryptocurrency mining devices generates significant heat that requires powerful cooling systems. Therefore, the main problem of mining is its high electricity consumption and energy usage. Unfortunately, due to the lack of planning by the country's officials, we are facing the problem of electricity shortage, which the growing digital currencies have exacerbated. Since decision-making in the real world (including the electricity shortage problem caused by mining) is complex and uncertain due to various influential factors, this research aims to apply a strategic selection approach to decision-making and provide solutions to solve the electricity shortage problem caused by cryptocurrency mining in Iran. In this study, the Strategic Choice Approach (SCA), one of the soft operational research methods, has been used for analysis, structuring, and decision tree development. For this purpose, four methods (styles) of SCA, which include ten steps, have been implemented. A working group consisting of twelve experts and stakeholders in digital currencies, facilitated by the researchers of this study, has been formed, and specific flowcharts and labels have been used. According to the SCA method, decision-making areas, decision options, areas of uncertainty, exploratory options, and decision trees have been designed. Finally, a ″commitment package″ (″improvement package″) has been proposed to provide practical solutions. This article provides solutions for solving the electricity shortage problem caused by cryptocurrency mining through the SCA. For this purpose, specific tasks have been assigned to the Islamic Consultative Assembly, the Ministry of Economy, the Ministry of Energy and Foreign Affairs, and the government, excluding the mentioned ministries and some key players in digital currencies, which should be carried out in the present and future. By structuring the research problem through the SCA method as one of the soft operations research methods, the readers and users of this research will learn more details and dimensions of the mentioned method,  contributing to expanding their knowledge of soft operations research. Although the SCA  method has been implemented in Iran and other countries for a long time in various social and organizational issues, the diagrams, shapes, and tables used to implement SCA in this research contribute more to the readers' knowledge. It also helps to localize this method and other research done in the country.

کلیدواژه‌ها

Cryptocurrency mining؛ Strategic choice approach؛ Decision making؛ Uncertainties

مراجع

Azar, A., Khosravani, F. and Jalali, R., 2016. Research in Soft Operations Problem Structuring Approaches. Industrial Management Institute. Tehran: Industrial Management Organization Publications. [in Persian].

Collins, N. and Zhu, Y., 2005. The transformation of HRM in transitional economies: The case of Vietnam. The journal of comparative Asian development, 4(1), pp.161-178. https://doi.org/10.1080/15339114.2005.9678414.

Crichton, C., 2013. Interdependence and Uncertainty: A study of the building industry. Routledge. https://doi.org/10.4324/9781315013688.

Esmaeili, P. and Rafei, M., 2021. Dynamics analysis of factors affecting electricity consumption fluctuations based on economic conditions: Application of SVAR and TVP-VAR models. Energy, 226, p.120340. https://doi.org/10.1016/j.energy.2021.120340.

Fairly. P., 2017. Blockchain world-Feeding the blockchain beast if bitcoin ever does go mainstream, the electricity needed to sustain it will be enormous. IEEE Spectrum, 54(10), pp.36-59. https://doi.org/10.1109/MSPEC.2017.8048837.

Franco, L.A. and Montibeller, G., 2010. Facilitated modelling in operational research. European Journal of Operational Research, 205(3), pp.489-500. https://doi.org/10.1016/j.ejor.2009.09.030.

Franco, L.A. and Rouwette, E.A., 2011. Decision development in facilitated modelling workshops. European Journal of Operational Research, 212(1), pp.164-178.

Friend, J. and Hickling, A., 2005. Planning under pressure. Routledge.

Friend, j.k. and Jessop, w.n.,1977. Local Government and Strategic Choice, 2nd ed. Pergamon, Oxford.

Ghaebi Panah, P., Bornapour, M., Cui, X. and Guerrero, J.M., 2022. Investment opportunities: Hydrogen production or BTC mining?. International Journal of Hydrogen Energy, 47(9), pp.5733-5744. https://doi.org/10.1016/j.ijhydene.2021.11.206.

Gomes Júnior, A.D.A. and Schramm, V.B., 2022. Problem structuring methods: a review of advances over the last decade. Systemic Practice and Action Research, 35(1), pp.55-88. https://doi.org/10.1007/s11213-021-09560-1.

Hajipour, E., Khavari, F., Hajiaghapour-Moghimi, M., Hosseini, K.A. and Vakilian, M., 2022. An economic evaluation framework for cryptocurrency mining operation in microgrids. International Journal of Electrical Power & Energy Systems, 142, p.108329. https://doi.org/10.1016/j.ijepes.2022.108329.

Hosseinzadeh M., Mehregan, M.R. and Amiri, M., 2013. Designing a Framework to Assist Multi-Methodology in Operations Research using General Morphological Analysis. Journal of Industrial Management Perspective, 3(3, Autumn 2013), pp.63-87. [in Persian]. https://doi.org/10.1016/j.ejor.2011.01.039.

Lami, I.M. and Tavella, E., 2019. On the usefulness of soft OR models in decision making: A comparison of Problem Structuring Methods supported and self-organized workshops. European Journal of Operational Research, 275(3), pp.1020-1036. https://doi.org/10.1016/j.ejor.2018.12.016.

Lami, I.M. and Todella, E., 2023. A multi-methodological combination of the strategic choice approach and the Analytic Network Process: From facts to values and vice versa. European Journal of Operational Research, 307(2), pp.802-812. https://doi.org/10.1016/j.ejor.2022.10.029.

Nejati, M., Bagrezaie, S. (2018). 'The Management of Complexities, Conflicts and Uncertainties in the Border County of Ghasr-e Shirin Using Strategic Choice Approach (corresponding author)', Soffeh, 28(1), pp. 85-110. https://dorl.net/dor/20.1001.1.1683870.1397.28.1.6.3. [in Persian].

Ram, C., Montibeller, G. and Morton, A., 2011. Extending the use of scenario planning and MCDA for the evaluation of strategic options. Journal of the Operational Research Society, 62(5), pp.817-829. https://doi.org/10.1057/jors.2010.90.

Rolando, D., 2015. Multicriteria decision problem structuring: The strategic choice approach in the context of public projects in Italy. International journal of multicriteria decision making, 5(1-2), pp.4-38. https://doi.org/10.1504/IJMCDM.2015.067942.

Smith, C.M. and Shaw, D., 2019. The characteristics of problem structuring methods: A literature review. European Journal of Operational Research, 274(2), pp.403-416. https://doi.org/10.1016/j.ejor.2018.05.003.

Todella, E., Lami, I.M. and Armando, A., 2018. Experimental use of strategic choice approach (SCA) by individuals as an architectural design tool. Group Decision and Negotiation, 27(5), pp.811-826. https://doi.org/10.1007/s10726-018-9567-9.