Combined cycle power plants (CCPPs) play an important role in electricity production throughout the world. Their energy efficiency is relatively high and their production rates of greenhouse gases are considerably low. In a country like Iran with huge oil and gas resources, most CCPP's use natural gas as primary fuel and diesel as secondary fuel. In this study, effect of using diesel instead of natural gas for a selected power plant will be investigated in terms of exergy, economic and environmental impacts. The environmental evaluation is performed using life cycle assessment (LCA). In the second step, the operation of the plant will be optimized using exergy and economic objective functions. The results show that the exergy efficiency of the plant with natural gas as fuel is equal to 43.11%, while this efficiency with diesel will be 42.03%. Furthermore, the annual cost of plant using diesel is twice as that of plant using natural gas. Finally, diesel utilization leads to more contaminants production. Thus, environmental effects of diesel are much higher than that of natural gas. The optimization results demonstrate that in case of natural gas, exergy efficiency and annual cost of the power plant improve 234% and 4.99%, respectively. While these improvements for diesel are 2.36% and 1.97%. (C) 2015 Elsevier Ltd. All rights reserved.