System dynamics analysis of the biodiesel and CPO productions in Malaysia

Citation

Mohammadi, Sahra and Mohamed Arshad, Fatimah and Gafurjanovich, Abdulla Ibragimov (2015) System dynamics analysis of the biodiesel and CPO productions in Malaysia. In: Postgraduate Conference on Economics, Public Administration and Business (PCEPAB 2015), 5 Sept. 2015, Faculty of Economics and Administration, University of Malaya. (pp. 272-281).

Abstract

This paper examines the biodiesel and crude palm oil productions in Malaysia using a system dynamics approach. There is an increasing demand for biodiesel in the world. The Biofuels Directive has set targets rising biodiesel production from 2% in 2005 to 20% by 2020 with Malaysia and Indonesia having the potential to capture 20% share of the biofuels market in Europe. The Malaysian government also expects that the blend 10 program of biodiesel will significantly increase demand for the feedstock including crude palm oil. This paper utilizes system dynamics approach as it enables one to capture the feedback relationships, non- linearity, and delay exist in commodity markets including palm oil. The model is simulated for 44 years starting from 1982 to 2025. The simulation results indicate that the CPO demand for biodiesel will increase in double which requires better concerns in production and stock of palm oil.

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Additional Metadata

Item Type:	Conference or Workshop Item (Paper)
Divisions:	Faculty of Economics and Management Institute of Agricultural and Food Policy Studies
Publisher:	Faculty of Economics and Administration, University of Malaya
Keywords:	Crude palm oil; Biodiesel; System dynamics
Depositing User:	Nabilah Mustapa
Date Deposited:	06 Mar 2019 05:34
Last Modified:	06 Mar 2019 05:34
URI:	http://psasir.upm.edu.my/id/eprint/66992
Statistic Details:	View Download Statistic

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