Impact of biofuel development on Malaysian agriculture

Acomparative statics, multicommodity, multistage production, partial equilibrium approach

Yaghoob Jafari, Jamal Othman

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

In light of the move toward a low carbon economy, Malaysia is currently promoting the production of palm oil-based biodiesel. This study develops a multicommodity, multistage, comparative static, partial equilibrium model for the Malaysian agricultural sector to be used to examine the impact of shifts in domestic demand for palm oil-based biofuel on the Malaysian agricultural sector. The model links explicitly factor markets, related outputs, and consumer preferences for biofuels. Model results demonstrate a clear converse relationship between the variables representing the competing activities within the same sector. An increase in domestic biofuel demand leads to an increase in biofuel output and primary factor uses while the outputs of competing uses, especially food and other non-food products decline markedly.

Original languageEnglish
Pages (from-to)192-202
Number of pages11
JournalFood and Energy Security
Volume5
Issue number3
DOIs
Publication statusPublished - 1 Aug 2016

Fingerprint

Biofuels
Agriculture
biofuels
biofuel
agriculture
Palm oil
agricultural industry
palm oils
nonfood products
oil
consumer preferences
biodiesel
Biodiesel
Malaysia
markets
Carbon
food
carbon
Food
demand

Keywords

  • Consumer preferences
  • Malaysian agriculture
  • Multicommodity partial equilibrium model
  • Palm oil-based biofuel

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Food Science
  • Forestry
  • Renewable Energy, Sustainability and the Environment

Cite this

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