Transition Towards Green Growth: Economic Feasibility and Risk Minimization Study on Oil Palm Biomass Industry
The urge for sustainable development createsa strong resonance for business and industry to transition towards green growth. Green growth emphasizing on economic development without neglecting human well-being and social equity, while preserving and conserving environmental and ecological balance. Compared to developed nations, developing countries exerts high capacity for growth. Thus, it is necessary to ensure that the economic development in the developing countries are sustainable and not rely on the future cost ofthe environment and future generation. As the major producer and exporter of palm oil, Malaysia produces abundant oil palm biomass which could be best utilized as wealth generation while contributing to green growth. High uncertainties on the biomass related project often cited as one of the key factors hindering the development of the industry. Thus, in this work, a multiple criteria decision analysis (MCDA) method, Decision making trial and evaluation laboratory (DEMATEL) is employed to evaluate the influence and causal-effect relationship of a series of risk mitigation strategy to minimize the overall risk profile of the oil palm biomass project. Monte-Carlo Simulation is performed to illustrate the economic feasibility of the related project to encourage industry stakeholders the venture into this industry. Introduction of financing incentives appeared to be the most effective action plan to reduce the overall project risk. The outcomes of this work served as a guideline for industry stakeholders, regardless of business owners, capital providers, the government agencies to customize risk management strategy and policy to speed up the growth rate of the industry for green growth.
Keywords - Green Growth, Risk Minimization, Economic Feasibility, Oil Palm Biomass, DEMATEL.