With the current level of pollution in atmosphere caused by fossil fuel emissions, coupled with the ominous fuel scarcity, efficient generation at the power stations is necessary. This paper proposes a multi-objective optimization model to maximize social welfare using the Bees Foraging Algorithm (BFA) and Estimation of Distribution Algorithm (EDA) highlighting the importance of treating generator efficiency parameters along with generation bid. This is because the generator bids alone are a poor representation of efficiency, being influenced by economic attitudes. Along with Economic Load Dispatch (ELD), the model reduces fossil fuel emissions and increases the efficiency of operating generators through curtailment to shift the operating point of generators to a more efficient region, while maintaining constraints of the system. The generation side curtailment is reflected on distribution side, where curtailment schemes based on the willingness to pay of the consumer and priority based incentive is used, thereby performing environmental dispatch. The improved efficiency reduces fuel consumption per MW thereby reducing fuel cost (Rs/h) and emission (ton/h), therefore maintaining generation efficiency with profit retention. The paper therefore establish that Independent System Operator (ISO), by real-time control of incentives and curtailment, encourage efficient consumption pattern among consumers and production among generating companies (GENCO). The results confirm that the proposed model benefits the society i.e. consumers, power producers and the environment. © 2016 IEEE.