IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/87717.html
   My bibliography  Save this paper

An Economic and Environmental Analysis of the Impact of Higher-Blended Biodiesel on the Philippine Economy

Author

Listed:
  • Alonzo, Ruperto

Abstract

The Biofuels Act of 2006 (RA 9367) was legislated to reduce the Philippines’ dependence on imported fuels and to protect public health and the environment. Under the Act, the Department of Energy (DOE) is authorized to increase the proportion of biodiesel blend upon the recommendation of the National Biofuels Board (NBB) and upon consideration of the domestic supply and availability of the locally produced biodiesel component. Beginning at 1% blend, the mandate was raised to 2% in February 2009. In June 2013, the NBB recommended an increase in the biodiesel blend to 5%. Results of the numerical analysis indicate that the proposed policy will lead to a rise in the price of biodiesel, inducing users to reduce consumption. The total loss to consumers due to the price increase is estimated at P3,767.47 million for 2016. This negative economic impact far outweighs the positive environmental effects in terms of reduced greenhouse gas emissions and health benefits due to reduced morbidity and mortality, with the net loss amounting to P3.26 billion for 2016 alone. These projections, along with the observed upward trend in relative world prices for coconut oil and crude oil prices plus the bleak scenario for domestic coconut production scenario, augur well for a postponement of raising the blend, at least in the short run.

Suggested Citation

  • Alonzo, Ruperto, 2016. "An Economic and Environmental Analysis of the Impact of Higher-Blended Biodiesel on the Philippine Economy," MPRA Paper 87717, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:87717
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/87717/1/MPRA_paper_87717.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Tol, Richard S.J., 2013. "Targets for global climate policy: An overview," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 911-928.
    2. Ravago, Majah-Leah & Fabella, Raul & Alonzo, Ruperto & Danao, Rolando & Mapa, Dennis, 2016. "Filipino 2040 Energy: Power Security and Competitiveness," MPRA Paper 87721, University Library of Munich, Germany, revised Jan 2018.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Philippines; biodiesel; biodiesel blend;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:87717. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.