PALM OIL INDUSTRY – OPIEJ https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Thu, 14 Jan 2021 06:38:11 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 The Nexus between Energy Consumption and Carbon Emission: The Case of Malaysian Palm Oil Industry https://opiej.mpob.gov.my/the-nexus-between-energy-consumption-and-carbon-emission-the-case-of-malaysian-palm-oil-industry/ Wed, 30 Sep 2020 23:35:24 +0000 https://opiej.mpob.gov.my/?p=1411 Read more]]> The increase in palm oil production for food and products has raised major concerns on greenhouse gas (GHG) emission. Studies have shown that agricultural and plantation acreage are one of the biggest contributors to the total global GHG emission, accounting for 17%. This is alarming for Malaysia’s reputation as the second largest palm oil producer, which currently contributes 39% of world palm oil production and 44% of world exports. While most studies have focused on the GHG emission from palm oil mill effluent (POME) and GHG emission from oil palm peat, little attention is given to GHG emission arising from operation during oil palm planting production activities. Hence, this paper aims to measure the impact of energy use on GHG emission of these two palm oil-related activities. In this study, we develop an extended Input-Output Table by introducing two vectors: (i) sectoral energy consumption in unit of energy (ktoe) and (ii) sectoral carbon emissions that are estimated separately. From a policy perspective, this paper will provide answers to critical and policy-relevant questions such as climate change mitigation action through the reduction of GHG emissions for sustainable palm oil production.

Keywords: energy consumption, carbon emissions, palm oil industry, input-output.

]]> The Challenges Facing Palm Oil in the 21st Century https://opiej.mpob.gov.my/the-challenges-facing-palm-oil-in-the-21st-century/ Tue, 28 Aug 2018 06:43:17 +0000 https://opiej.mpob.gov.my/?p=261 Read more]]> The palm oil sector is facing short-run as well as long-run challenges. The short-run challenges focus on the ability of the sector to counter the economic cycle, whereas the long-run challenges are associated with fundamental issues pertinent to the sector. Both short-run and long-run challenges are products of biological factors of the oil palm and its products, as well as the behaviour of substitute oils, vegetable and/or mineral. The Malaysian palm oil sector has little control over the economic cycle as the cyclical behaviour depends heavily on other substitutes used as vegetable oils or biofuels. The long-run challenges of the sector are the slower rate of improvement in oil palm yields than other oilseeds, low labour productivity mostly due to problems in the mechanization of the harvesting operation, functional obstacles to palm oil usage in temperate countries due to its lipid composition, and the non-tariff barriers against palm oil by the importing nations, particularly the European Union (EU) and USA. Some possible solutions are proposed.

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