Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach

Malaysia targets biodiesel as a renewable energy source to achieve its low carbon economy. This paper examines biodiesel and crude palm oil productions in Malaysia using a system dynamics approach. It aims to develop a model for the Malaysian biodiesel industry by capturing the relationship between...

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Main Authors: Mohammadi, Sahra, Mohamed Arshad, Fatimah, Ibragimov, Abdulla
Format: Article
Language:English
Published: Faculty Economics & Administration, University of Malaya 2016
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/54361/
http://psasir.upm.edu.my/id/eprint/54361/1/Future%20prospects%20and%20policy%20implications%20for%20biodiesel%20production%20in%20Malaysia.pdf
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author Mohammadi, Sahra
Mohamed Arshad, Fatimah
Ibragimov, Abdulla
author_facet Mohammadi, Sahra
Mohamed Arshad, Fatimah
Ibragimov, Abdulla
author_sort Mohammadi, Sahra
building UPM Institutional Repository
collection Online Access
description Malaysia targets biodiesel as a renewable energy source to achieve its low carbon economy. This paper examines biodiesel and crude palm oil productions in Malaysia using a system dynamics approach. It aims to develop a model for the Malaysian biodiesel industry by capturing the relationship between major elements in the system such as supply, demand, inventory and price. The system dynamics approach is used as it enables one to capture feedback relationships, non-linearity, and delay in commodity markets including palm oil. The model has been simulated for 44 years, from 1982 to 2025 and the results indicate that crude palm oil demand for biodiesel will double requiring better strategy and policies to manage the stock and production of palm oil. Given biodiesel production in Malaysia is largely dependent on palm oil, Malaysia needs policies for development strategies of biodiesel production for coming years to meet its increasing demand.
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spelling upm-543612018-03-14T05:17:19Z http://psasir.upm.edu.my/id/eprint/54361/ Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach Mohammadi, Sahra Mohamed Arshad, Fatimah Ibragimov, Abdulla Malaysia targets biodiesel as a renewable energy source to achieve its low carbon economy. This paper examines biodiesel and crude palm oil productions in Malaysia using a system dynamics approach. It aims to develop a model for the Malaysian biodiesel industry by capturing the relationship between major elements in the system such as supply, demand, inventory and price. The system dynamics approach is used as it enables one to capture feedback relationships, non-linearity, and delay in commodity markets including palm oil. The model has been simulated for 44 years, from 1982 to 2025 and the results indicate that crude palm oil demand for biodiesel will double requiring better strategy and policies to manage the stock and production of palm oil. Given biodiesel production in Malaysia is largely dependent on palm oil, Malaysia needs policies for development strategies of biodiesel production for coming years to meet its increasing demand. Faculty Economics & Administration, University of Malaya 2016-10 Article NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/54361/1/Future%20prospects%20and%20policy%20implications%20for%20biodiesel%20production%20in%20Malaysia.pdf Mohammadi, Sahra and Mohamed Arshad, Fatimah and Ibragimov, Abdulla (2016) Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach. Institutions and Economies, 8 (4). pp. 42-57. ISSN 2232-1640; ESSN: 2232-1349 https://ijie.um.edu.my/index.php/ijie/article/view/5050 Biodiesel; Crude oil; Crude palm oil; Simulation; System dynamics
spellingShingle Biodiesel; Crude oil; Crude palm oil; Simulation; System dynamics
Mohammadi, Sahra
Mohamed Arshad, Fatimah
Ibragimov, Abdulla
Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title_full Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title_fullStr Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title_full_unstemmed Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title_short Future prospects and policy implications for biodiesel production in Malaysia: a system dynamics approach
title_sort future prospects and policy implications for biodiesel production in malaysia: a system dynamics approach
topic Biodiesel; Crude oil; Crude palm oil; Simulation; System dynamics
url http://psasir.upm.edu.my/id/eprint/54361/
http://psasir.upm.edu.my/id/eprint/54361/
http://psasir.upm.edu.my/id/eprint/54361/1/Future%20prospects%20and%20policy%20implications%20for%20biodiesel%20production%20in%20Malaysia.pdf