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Optimization of the Colombian biodiesel supply chain from oil palm crop based on techno-economical and environmental criteria

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  • Rincón, Luis E.
  • Valencia, Monica J.
  • Hernández, Valentina
  • Matallana, Luis G.
  • Cardona, Carlos A.

Abstract

During the last years the worldwide legal framework has stimulated the biofuel development, causing their production and use to be exhaustively studied. Biodiesel has been mostly produced in European countries, but the agronomic potential of the Latin-American countries has led the effort toward the biodiesel production, via regulations. This is the case of Colombia, where the oil palm has been exploited as the major biodiesel feedstock. The acts, laws and regulations indicate the mandatory expansion of biodiesel usage. Nonetheless, the laws do not explain the way in that those expansion targets will be done. In this work, the optimal conditions of the supply chain biodiesel were studied via the techno-economic and environmental analysis. Using logistic restrictions, environmental assessment and cost minimization (all of them were estimated in this work), the optimal expansion conditions were decided, taking into account the minimal emissions and the effect of the Land Use Change (LUC) for the oil palm crop expansion. The results showed that the Middle Region is the most promising zone for biodiesel expansion, as well as the Eastern Region is the most adequate zone for expansion crops since the LUC impact is lowest. Finally, the results indicated that the biodiesel based industry must be addressed toward other feedstocks.

Suggested Citation

  • Rincón, Luis E. & Valencia, Monica J. & Hernández, Valentina & Matallana, Luis G. & Cardona, Carlos A., 2015. "Optimization of the Colombian biodiesel supply chain from oil palm crop based on techno-economical and environmental criteria," Energy Economics, Elsevier, vol. 47(C), pages 154-167.
  • Handle: RePEc:eee:eneeco:v:47:y:2015:i:c:p:154-167
    DOI: 10.1016/j.eneco.2014.10.018
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    References listed on IDEAS

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    4. dos Santos Alves, Camila Elisa & Belarmino, Luiz Clovis & Padula, Antonio Domingos, 2017. "Feedstock diversification for biodiesel production in Brazil: Using the Policy Analysis Matrix (PAM) to evaluate the impact of the PNPB and the economic competitiveness of alternative oilseeds," Energy Policy, Elsevier, vol. 109(C), pages 297-309.
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    More about this item

    Keywords

    Biodiesel supply chain; Palm oil expansion; Greenhouse gas emissions; Land Use Change;
    All these keywords.

    JEL classification:

    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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