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Production possibility frontier analysis of biodiesel from waste cooking oil

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  • Kagawa, Shigemi
  • Takezono, Kanako
  • Suh, Sangwon
  • Kudoh, Yuki

Abstract

This paper presents an assessment of the productive efficiency of an advanced biodiesel plant in Japan using Data Envelopment Analysis (DEA). The empirical analysis uses monthly input data (waste cooking oil, methanol, potassium hydroxide, power consumption, and the truck diesel fuel used for the procurement of waste cooking oil) and output data (biodiesel) of a biodiesel fuel plant for August 2008–July 2010. The results of this study show that the production activity with the lowest cost on the biodiesel production possibility frontier occurred in March 2010 (production activity used 1.41kL of waste cooking oil, 0.18kL of MeOH, 16.33kg of KOH, and 5.45kWh of power), and the unit production cost in that month was 18,517 yen/kL. Comparing this efficient production cost to the mean unit production cost on the production possibility frontier at 19,712 yen/kL, revealed that the cost of producing 1kL of biodiesel could be reduced by as much as 1195 yen. We also find that the efficiency improvement will contribute to decreasing the cost ratio (cost per sale) of the biodiesel production by approximately 1% during the study period (24 months) between August 2008 and July 2010.

Suggested Citation

  • Kagawa, Shigemi & Takezono, Kanako & Suh, Sangwon & Kudoh, Yuki, 2013. "Production possibility frontier analysis of biodiesel from waste cooking oil," Energy Policy, Elsevier, vol. 55(C), pages 362-368.
    • Handle: RePEc:eee:enepol:v:55:y:2013:i:c:p:362-368
    DOI: 10.1016/j.enpol.2012.12.016
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    References listed on IDEAS

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    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Zhang, Huiming & Aytun Ozturk, U. & Wang, Qunwei & Zhao, Zengyao, 2014. "Biodiesel produced by waste cooking oil: Review of recycling modes in China, the US and Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 677-685.
    3. Cao, Leichang & Wang, Jieni & Liu, Kuojin & Han, Sheng, 2014. "Ethyl acetoacetate: A potential bio-based diluent for improving the cold flow properties of biodiesel from waste cooking oil," Applied Energy, Elsevier, vol. 114(C), pages 18-21.
    4. Zhao, Yuanhao & Wang, Changbo & Zhang, Lixiao & Chang, Yuan & Hao, Yan, 2021. "Converting waste cooking oil to biodiesel in China: Environmental impacts and economic feasibility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 140(C).
    5. De Oliveira, Fernando C. & Coelho, Suani T., 2017. "History, evolution, and environmental impact of biodiesel in Brazil: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 168-179.
    6. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2019. "Environmental efficiency measurement with heterogeneous input quality: A nonparametric analysis of U.S. power plants," Energy Economics, Elsevier, vol. 81(C), pages 610-625.

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