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Lifecycle GHG emissions of palm biodiesel: Unintended market effects negate direct benefits of the Malaysian Economic Transformation Plan (ETP)

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  • Abdul-Manan, Amir F.N.

Abstract

Biodiesel expansion can lead to unintended effects that offset the direct GHG benefits of biofuels. Two documented unintended effects are the indirect land use change (ILUC) and indirect energy use change (IEUC). ILUC has been included in many lifecycle GHG studies of biofuels, but IEUC has remained relatively elusive. This paper presents an updated assessment of the lifecycle GHG emissions of palm biodiesel from Malaysia and, for the first time, incorporating the two estimated indirect effects simultaneously. Future GHG emissions of palm biodiesel are projected by taking into account of Malaysia's Economic Transformation Programme (ETP) that aims to reform the oil palm industry in order to achieve a high-income nation. Uncertainties associated with lifecycle GHG models were dealt with using Monte Carlo simulation in order to identify the breadth and likelihood of GHG reductions relative to petroleum-based fuels in the context of the European directives. This study has shown that the ETP, if successfully implemented, can significantly improve the direct GHG emissions of palm biodiesel, but the benefits are offset by the rise in global emissions due to ILUC and IEUC. Biofuel policies should also include IEUC, in addition to ILUC, to avoid GHG emissions leakages.

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  • Abdul-Manan, Amir F.N., 2017. "Lifecycle GHG emissions of palm biodiesel: Unintended market effects negate direct benefits of the Malaysian Economic Transformation Plan (ETP)," Energy Policy, Elsevier, vol. 104(C), pages 56-65.
    • Handle: RePEc:eee:enepol:v:104:y:2017:i:c:p:56-65
    DOI: 10.1016/j.enpol.2017.01.041
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    1. Phuang, Zhen Xin & Woon, Kok Sin & Wong, Khai Jian & Liew, Peng Yen & Hanafiah, Marlia Mohd, 2021. "Unlocking the environmental hotspots of palm biodiesel upstream production in Malaysia via life cycle assessment," Energy, Elsevier, vol. 232(C).
    2. Azhar, Badrul & Nobilly, Frisco & Lechner, Alex M. & Tohiran, Kamil Azmi & Maxwell, Thomas M.R. & Zulkifli, Raja & Kamel, Mohd Fathil & Oon, Aslinda, 2021. "Mitigating the risks of indirect land use change (ILUC) related deforestation from industrial palm oil expansion by sharing land access with displaced crop and cattle farmers," Land Use Policy, Elsevier, vol. 107(C).
    3. Mat Yasin, Mohd Hafizil & Mamat, Rizalman & Najafi, G. & Ali, Obed Majeed & Yusop, Ahmad Fitri & Ali, Mohd Hafiz, 2017. "Potentials of palm oil as new feedstock oil for a global alternative fuel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1034-1049.
    4. Živković, Snežana B. & Veljković, Milan V. & Banković-Ilić, Ivana B. & Krstić, Ivan M. & Konstantinović, Sandra S. & Ilić, Slavica B. & Avramović, Jelena M. & Stamenković, Olivera S. & Veljković, Vlad, 2017. "Technological, technical, economic, environmental, social, human health risk, toxicological and policy considerations of biodiesel production and use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 222-247.

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