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Assessing the Sustainability of Palm Oil by Expert Interviews—An Application of the Analytic Hierarchy Process

Author

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  • Oliver Meixner

    (Department of Economics and Social Sciences, Institute of Marketing and Innovation, University of Natural Resources and Life Sciences, 1180 Vienna, Austria)

  • Sonja Hackl

    (Amt der OÖ Landesregierung, 4021 Linz, Austria)

  • Rainer Haas

    (Department of Economics and Social Sciences, Institute of Marketing and Innovation, University of Natural Resources and Life Sciences, 1180 Vienna, Austria)

Abstract

Palm oil plays a crucial role in the food industry, industrial applications, and bioenergy, accounting for over one-third of global vegetable oil production. The production area has quadrupled, and the volume is about seven times higher today than in the early 1990s. This significant increase is attributed to several factors, including the oil palm’s notably higher yield per hectare compared to other oilseeds, cost-effectiveness, versatility, and excellent manufacturing characteristics. Despite its economic benefits, industrial palm oil production raises substantial ecological and social concerns, such as deforestation, habitat loss, and labor issues. This study presents a comprehensive sustainability assessment that concurrently considers economic, environmental, and social aspects. Through qualitative expert interviews, various stakeholders in the supply chain evaluated the sustainability criteria of palm oil production and application using the Analytical Hierarchy Process (AHP), a decision support tool helping to analyze, structure, and solve complex decision problems. The results reveal that, on average, the experts consider environmental criteria to be of the highest importance, followed by social sustainability, while economic criteria are of lower significance. However, the approximations regarding the weighting of the criteria showed considerable variations among experts. The AHP priority index for RSPO-certified palm oil is nearly as high as the reference product “EU canola oil”; this observation is consistent with all expert judgments. This study provides an adequate approach to assessing the sustainability of agricultural supply chains, offering practical recommendations for the food industry and policymakers.

Suggested Citation

  • Oliver Meixner & Sonja Hackl & Rainer Haas, 2023. "Assessing the Sustainability of Palm Oil by Expert Interviews—An Application of the Analytic Hierarchy Process," Sustainability, MDPI, vol. 15(24), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:24:p:16954-:d:1302612
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    References listed on IDEAS

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    1. Yee, Kian Fei & Tan, Kok Tat & Abdullah, Ahmad Zuhairi & Lee, Keat Teong, 2009. "Life cycle assessment of palm biodiesel: Revealing facts and benefits for sustainability," Applied Energy, Elsevier, vol. 86(Supplemen), pages 189-196, November.
    2. Sala, Serenella & Ciuffo, Biagio & Nijkamp, Peter, 2015. "A systemic framework for sustainability assessment," Ecological Economics, Elsevier, vol. 119(C), pages 314-325.
    3. Forman, Ernest & Peniwati, Kirti, 1998. "Aggregating individual judgments and priorities with the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 108(1), pages 165-169, July.
    4. Andrés Calizaya & Oliver Meixner & Lars Bengtsson & Ronny Berndtsson, 2010. "Multi-criteria Decision Analysis (MCDA) for Integrated Water Resources Management (IWRM) in the Lake Poopo Basin, Bolivia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(10), pages 2267-2289, August.
    5. Lakshmy Naidu & Ravichandran Moorthy, 2021. "A Review of Key Sustainability Issues in Malaysian Palm Oil Industry," Sustainability, MDPI, vol. 13(19), pages 1-13, September.
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    1. Tymoteusz Miller & Irmina Durlik & Ewelina Kostecka & Adrianna Łobodzińska & Marcin Matuszak, 2024. "The Emerging Role of Artificial Intelligence in Enhancing Energy Efficiency and Reducing GHG Emissions in Transport Systems," Energies, MDPI, vol. 17(24), pages 1-31, December.

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