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

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

Energy Economics, 2015, vol. 47, issue C, 154-167

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.

Keywords: Biodiesel supply chain; Palm oil expansion; Greenhouse gas emissions; Land Use Change (search for similar items in EconPapers)
JEL-codes: C88 O33 Q16 Q41 Q42 Q43 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:47:y:2015:i:c:p:154-167

DOI: 10.1016/j.eneco.2014.10.018

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