Implications of Palm-based Biodiesel Blend Mandate on the Biodiesel Industry Growth in Malaysia: Evidence from Causal Loop Diagram
Main Article Content
Abstract
The government’s recent announcement to increase blend mandate of B10 for transportation sector and B7 for industrial sector is being welcomed by experts as a huge turning point for Malaysia palm-based biodiesel industry. However, concerns remain on the viability of the industry, especially during low crude oil price period. The main aim of this paper is to assess the impact of various blend mandates on Malaysia’s biodiesel industry based on cost-profit, environmental, and wide economic perspectives. This research employs the causal loop diagram of system dynamics method which explains how things change through time and how actions and reactions cause and influence each other. The findings indicate the government’s effort is rational and has a positive impact on the environment and economy but a negative impact from the cost-profit perspective. The study results allow policy makers such as MPOB to understand and to predict how various blend mandate might affect not only the biodiesel industry in the long term but also the cost-profit, environmental and other economic variables.
Downloads
Article Details
Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.
All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.