Between Food and Fuels: The Importance of Balancing Dual-Edged Sword of Palm Oil Usage

The versatility of palm oil, especially in culinary goods and sustainable energy, has elevated it to a crucial position in international trade. The dual role of palm oil presents a complex challenge, managing the surge in demand for edible oils while addressing the heightened focus on sustainable fuel alternatives. This study aims to comprehensively examine the multifaceted implications of palm oil usage by synthesizing existing knowledge on its economic, environmental, and social impacts. Using a qualitative literature review method, this research systematically analyzes over 80 scholarly articles to explore the interconnected benefits and compromises of utilizing palm oil for nutritional and energy purposes. Data collection was conducted through rigorous database searches across multiple academic platforms, focusing on peer-reviewed publications. Thematic content analysis was applied to identify key themes and patterns related to production growth, market dynamics, environmental sustainability, and socio-economic factors. The findings indicate that palm oil production has expanded significantly, influencing global vegetable oil markets and biofuel sectors. Nonetheless, this progress often results in environmental degradation, notably through deforestation and the emission of greenhouse gases. Socially, palm oil cultivation supports millions of livelihoods, although benefits are unevenly distributed, particularly among smallholders. The review highlights the urgent need for integrated governance frameworks and sustainable management practices to reconcile competing demands. In conclusion, a balanced approach to palm oil utilization is essential to mitigate negative consequences and enhance benefits across sectors. The study recommends future research to focus on empirical policy evaluations and the development of innovative sustainability solutions to support effective decision-making in palm oil management.