The decision on the location of a straw-based power generation plant has a great influence on the plant’s operation and performance. This study explores traditional theories for site selection. Using integer programming, the study optimizes the economic and carbon emission outcomes of straw-based power generation as two objectives, with the supply and demand of straw as constraints. It provides a multi-objective mixed-integer programming model to solve the site selection problem for a straw-based power generation plant. It then provides a case study to demonstrate the application of the model in the decision on the site selection for a straw-based power generation plant with a Chinese region. Finally, the paper discusses the result of the model in the context of the wider aspect of straw-based power generation.