The Economic Viability of Jatropha Biodiesel in Nepal

Nepal depends entirely on imports for meeting its demand for petroleum products, which account for the largest share in total import volume. Diesel is the main petroleum product consumed in the country and accounts for 38 percent of the total natio...

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Main Authors: Timilsina, Govinda R., Tiwari, Ujjal
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
GAS
CO2
OIL
GHG
DAP
Online Access:http://documents.worldbank.org/curated/en/2015/06/24597230/economic-viability-jatropha-biodiesel-nepal
http://hdl.handle.net/10986/22168
id okr-10986-22168
recordtype oai_dc
spelling okr-10986-221682021-04-23T14:04:07Z The Economic Viability of Jatropha Biodiesel in Nepal Timilsina, Govinda R. Tiwari, Ujjal CARBON CREDIT EMPLOYMENT OIL EXTRACTION COLLECTION COSTS TRANSPORT SECTOR FUEL PROPERTIES PRODUCTION CARBON DIOXIDE FOSSIL FUELS VARIABLE COSTS CALCULATION UREA CARBON VEHICLES OIL SEED PLANT ACTIVITIES DISCOUNT RATE EMISSIONS GASOLINE WELFARE EMISSION REDUCTION VARIABLES GAS WHOLESALE PRICE DIESEL CONSUMPTION PRICE INPUTS OIL PRODUCTION PAYMENTS GREENHOUSE GAS PESTICIDES ECONOMIC ANALYSIS TRENDS CENTRAL BANK AGRICULTURAL PRACTICES DEVELOPMENT MAIZE CAPACITY UTILIZATION WATER MANAGEMENT CO2 PETROLEUM OIL PRICES CLIMATIC CONDITIONS PER CAPITA INCOME COSTS OIL SUSTAINABLE ENERGY CHEMICAL PROPERTIES RENT BIODIESEL CAPACITY PLANT OWNER GHG CALORIFIC VALUE FIXED COSTS WATER DISTRIBUTION FACILITIES MARKETS RAINFALL VARIABLE INPUTS ALTERNATIVE FUELS PHOSPHORUS TOTAL COSTS ENERGY SECTOR PETROLEUM CONSUMPTION DISCOUNTED VALUE FUEL CONSUMPTION FUELS SUBSIDIES DEGRADED LAND TAXES ALTERNATIVE USE TURBINE ENERGY CONSUMPTION EMISSION GREENHOUSE CONSUMPTION OPPORTUNITY COST GROSS MARGIN ECONOMIC RENT HEAT CROP CLIMATE CHANGE FUEL TYPES CARBON REVENUE DROUGHT BALANCE CARBON CREDITS BIO-ENERGY ALTERNATIVE ENERGY HEAT RATE VALUE COMPETITIVENESS CLEAN DEVELOPMENT ELECTRICITY CREDIT COST OF FEEDSTOCK FORESTS FOSSIL FUEL CHEMICAL INDUSTRIES AGRICULTURE PETROLEUM GAS DAP ECONOMIC COMPETITIVENESS ECONOMICS PILOT PROJECTS TRADE EMISSIONS FROM FUEL BIOFUEL COMBUSTION FEEDSTOCK INVESTMENT NITROGEN RURAL AREAS COAL FUEL CARBON MARKET POTASH LESS AVAILABILITY FACILITIES WHEAT ECONOMIC LIFE BIOFUELS LIQUEFIED PETROLEUM GAS RENEWABLE ENERGY PETROLEUM PRODUCTS ECONOMICS RESEARCH DIESEL KEROSENE PRICE FLOOR FOSSIL PRICES JATROPHA PRODUCTION COSTS OIL SEED BENEFITS DEVELOPMENT POLICY ALTERNATIVE FUEL ENERGY Nepal depends entirely on imports for meeting its demand for petroleum products, which account for the largest share in total import volume. Diesel is the main petroleum product consumed in the country and accounts for 38 percent of the total national CO2 emissions from fuel consumption. There is a general perception that the country would economically benefit if part of imported diesel is substituted with domestically produced jatropha-based biodiesel. This study finds that the economics of jatropha-based biodiesel depend on several factors, such as diesel price, yield of jatropha seeds per hectare, and availability of markets for production byproducts, such as glycerol and jatropha cake. Under the scenarios considered, jatropha biodiesel is unlikely to be economically competitive in Nepal unless seed yields per hectare are implausibly large and high returns can be obtained from byproduct markets that do not yet exist. In the absence of byproduct markets, even earnings from a carbon credit do not help jatropha biodiesel to compete with diesel unless the credit value exceeds US$50/tCO2 (which is well above current values) and jatropha seed yield is at or above the midrange of the scenarios considered. Declines in diesel prices from the levels observed in 2009–13 only compound the economic competitiveness issue. 2015-07-16T14:24:33Z 2015-07-16T14:24:33Z 2015-06 Working Paper http://documents.worldbank.org/curated/en/2015/06/24597230/economic-viability-jatropha-biodiesel-nepal http://hdl.handle.net/10986/22168 English en_US Policy Research Working Paper;No. 7295 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Nepal
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic CARBON CREDIT
EMPLOYMENT
OIL EXTRACTION
COLLECTION COSTS
TRANSPORT SECTOR
FUEL PROPERTIES
PRODUCTION
CARBON DIOXIDE
FOSSIL FUELS
VARIABLE COSTS
CALCULATION
UREA
CARBON
VEHICLES
OIL SEED PLANT
ACTIVITIES
DISCOUNT RATE
EMISSIONS
GASOLINE
WELFARE
EMISSION REDUCTION
VARIABLES
GAS
WHOLESALE PRICE
DIESEL CONSUMPTION
PRICE
INPUTS
OIL PRODUCTION
PAYMENTS
GREENHOUSE GAS
PESTICIDES
ECONOMIC ANALYSIS
TRENDS
CENTRAL BANK
AGRICULTURAL PRACTICES
DEVELOPMENT
MAIZE
CAPACITY UTILIZATION
WATER MANAGEMENT
CO2
PETROLEUM
OIL PRICES
CLIMATIC CONDITIONS
PER CAPITA INCOME
COSTS
OIL
SUSTAINABLE ENERGY
CHEMICAL PROPERTIES
RENT
BIODIESEL
CAPACITY
PLANT OWNER
GHG
CALORIFIC VALUE
FIXED COSTS
WATER
DISTRIBUTION FACILITIES
MARKETS
RAINFALL
VARIABLE INPUTS
ALTERNATIVE FUELS
PHOSPHORUS
TOTAL COSTS
ENERGY SECTOR
PETROLEUM CONSUMPTION
DISCOUNTED VALUE
FUEL CONSUMPTION
FUELS
SUBSIDIES
DEGRADED LAND
TAXES
ALTERNATIVE USE
TURBINE
ENERGY CONSUMPTION
EMISSION
GREENHOUSE
CONSUMPTION
OPPORTUNITY COST
GROSS MARGIN
ECONOMIC RENT
HEAT
CROP
CLIMATE CHANGE
FUEL TYPES
CARBON REVENUE
DROUGHT
BALANCE
CARBON CREDITS
BIO-ENERGY
ALTERNATIVE ENERGY
HEAT RATE
VALUE
COMPETITIVENESS
CLEAN DEVELOPMENT
ELECTRICITY
CREDIT
COST OF FEEDSTOCK
FORESTS
FOSSIL FUEL
CHEMICAL INDUSTRIES
AGRICULTURE
PETROLEUM GAS
DAP
ECONOMIC COMPETITIVENESS
ECONOMICS
PILOT PROJECTS
TRADE
EMISSIONS FROM FUEL
BIOFUEL
COMBUSTION
FEEDSTOCK
INVESTMENT
NITROGEN
RURAL AREAS
COAL
FUEL
CARBON MARKET
POTASH
LESS
AVAILABILITY
FACILITIES
WHEAT
ECONOMIC LIFE
BIOFUELS
LIQUEFIED PETROLEUM GAS
RENEWABLE ENERGY
PETROLEUM PRODUCTS
ECONOMICS RESEARCH
DIESEL
KEROSENE
PRICE FLOOR
FOSSIL
PRICES
JATROPHA
PRODUCTION COSTS
OIL SEED
BENEFITS
DEVELOPMENT POLICY
ALTERNATIVE FUEL
ENERGY
spellingShingle CARBON CREDIT
EMPLOYMENT
OIL EXTRACTION
COLLECTION COSTS
TRANSPORT SECTOR
FUEL PROPERTIES
PRODUCTION
CARBON DIOXIDE
FOSSIL FUELS
VARIABLE COSTS
CALCULATION
UREA
CARBON
VEHICLES
OIL SEED PLANT
ACTIVITIES
DISCOUNT RATE
EMISSIONS
GASOLINE
WELFARE
EMISSION REDUCTION
VARIABLES
GAS
WHOLESALE PRICE
DIESEL CONSUMPTION
PRICE
INPUTS
OIL PRODUCTION
PAYMENTS
GREENHOUSE GAS
PESTICIDES
ECONOMIC ANALYSIS
TRENDS
CENTRAL BANK
AGRICULTURAL PRACTICES
DEVELOPMENT
MAIZE
CAPACITY UTILIZATION
WATER MANAGEMENT
CO2
PETROLEUM
OIL PRICES
CLIMATIC CONDITIONS
PER CAPITA INCOME
COSTS
OIL
SUSTAINABLE ENERGY
CHEMICAL PROPERTIES
RENT
BIODIESEL
CAPACITY
PLANT OWNER
GHG
CALORIFIC VALUE
FIXED COSTS
WATER
DISTRIBUTION FACILITIES
MARKETS
RAINFALL
VARIABLE INPUTS
ALTERNATIVE FUELS
PHOSPHORUS
TOTAL COSTS
ENERGY SECTOR
PETROLEUM CONSUMPTION
DISCOUNTED VALUE
FUEL CONSUMPTION
FUELS
SUBSIDIES
DEGRADED LAND
TAXES
ALTERNATIVE USE
TURBINE
ENERGY CONSUMPTION
EMISSION
GREENHOUSE
CONSUMPTION
OPPORTUNITY COST
GROSS MARGIN
ECONOMIC RENT
HEAT
CROP
CLIMATE CHANGE
FUEL TYPES
CARBON REVENUE
DROUGHT
BALANCE
CARBON CREDITS
BIO-ENERGY
ALTERNATIVE ENERGY
HEAT RATE
VALUE
COMPETITIVENESS
CLEAN DEVELOPMENT
ELECTRICITY
CREDIT
COST OF FEEDSTOCK
FORESTS
FOSSIL FUEL
CHEMICAL INDUSTRIES
AGRICULTURE
PETROLEUM GAS
DAP
ECONOMIC COMPETITIVENESS
ECONOMICS
PILOT PROJECTS
TRADE
EMISSIONS FROM FUEL
BIOFUEL
COMBUSTION
FEEDSTOCK
INVESTMENT
NITROGEN
RURAL AREAS
COAL
FUEL
CARBON MARKET
POTASH
LESS
AVAILABILITY
FACILITIES
WHEAT
ECONOMIC LIFE
BIOFUELS
LIQUEFIED PETROLEUM GAS
RENEWABLE ENERGY
PETROLEUM PRODUCTS
ECONOMICS RESEARCH
DIESEL
KEROSENE
PRICE FLOOR
FOSSIL
PRICES
JATROPHA
PRODUCTION COSTS
OIL SEED
BENEFITS
DEVELOPMENT POLICY
ALTERNATIVE FUEL
ENERGY
Timilsina, Govinda R.
Tiwari, Ujjal
The Economic Viability of Jatropha Biodiesel in Nepal
geographic_facet South Asia
Nepal
relation Policy Research Working Paper;No. 7295
description Nepal depends entirely on imports for meeting its demand for petroleum products, which account for the largest share in total import volume. Diesel is the main petroleum product consumed in the country and accounts for 38 percent of the total national CO2 emissions from fuel consumption. There is a general perception that the country would economically benefit if part of imported diesel is substituted with domestically produced jatropha-based biodiesel. This study finds that the economics of jatropha-based biodiesel depend on several factors, such as diesel price, yield of jatropha seeds per hectare, and availability of markets for production byproducts, such as glycerol and jatropha cake. Under the scenarios considered, jatropha biodiesel is unlikely to be economically competitive in Nepal unless seed yields per hectare are implausibly large and high returns can be obtained from byproduct markets that do not yet exist. In the absence of byproduct markets, even earnings from a carbon credit do not help jatropha biodiesel to compete with diesel unless the credit value exceeds US$50/tCO2 (which is well above current values) and jatropha seed yield is at or above the midrange of the scenarios considered. Declines in diesel prices from the levels observed in 2009–13 only compound the economic competitiveness issue.
format Working Paper
author Timilsina, Govinda R.
Tiwari, Ujjal
author_facet Timilsina, Govinda R.
Tiwari, Ujjal
author_sort Timilsina, Govinda R.
title The Economic Viability of Jatropha Biodiesel in Nepal
title_short The Economic Viability of Jatropha Biodiesel in Nepal
title_full The Economic Viability of Jatropha Biodiesel in Nepal
title_fullStr The Economic Viability of Jatropha Biodiesel in Nepal
title_full_unstemmed The Economic Viability of Jatropha Biodiesel in Nepal
title_sort economic viability of jatropha biodiesel in nepal
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/06/24597230/economic-viability-jatropha-biodiesel-nepal
http://hdl.handle.net/10986/22168
_version_ 1764450334418141184