Impact of biodiesel blend mandate on natural rubber market in Malaysia

One of the important elements in Malaysia's natural rubber market is the implementation of biodiesel mandate. This mandate is affecting the supply and demand of natural rubber industry. The main objective of the study is to analyse the impact of biodiesel blend mandate on Malaysian natural rubb...

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Main Author:	Nur Hazirah, Md Ludin
Format:	Thesis
Language:	eng eng
Published:	2019
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/10334/1/depositpermission_s93813.pdf https://etd.uum.edu.my/10334/2/s93813_01.pdf
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id	my-uum-etd.10334
record_format	uketd_dc
spelling	my-uum-etd.103342023-03-01T04:06:28Z Impact of biodiesel blend mandate on natural rubber market in Malaysia 2019 Nur Hazirah, Md Ludin Applanaidu, Shri Dewi Abdullah, Hussin School of Economics, Finance & Banking School of Economics, Finance & Banking HB Economic Theory One of the important elements in Malaysia's natural rubber market is the implementation of biodiesel mandate. This mandate is affecting the supply and demand of natural rubber industry. The main objective of the study is to analyse the impact of biodiesel blend mandate on Malaysian natural rubber market. The specific objectives are to (i) develop a Malaysian natural rubber market model, (ii) examine the impact of biodiesel blend mandate on the natural rubber market supply; (iii) examine the impact of biodiesel blend mandate on the natural rubber market demand; and (iv) examine the impact of biodiesel blend mandate on the natural rubber market price. Two stage least squares (2SLS) estimation method has been applied by using data from year 1985-2016. The market model consists of production, import, domestic consumption, export, domestic and world price equations and closed by using domestic and world stock identities. Biodiesel mandate, interest rate, government expenditure on rural development and agriculture and crude oil price are the new important variables that had been included in natural rubber equations. Biodiesel mandate, interest rate and government expenditure on rural development and agriculture are found to be significant in production equation. While crude oil price is significant in world price equation. The ex-ante analysis results are consistent with the counter/actual analysis. Result shows that there are changes in all of these variables when there is an increase in the mandate. Domestic price shows the highest negative effect on all percentage biodiesel mandate among all endogenous variables in this study. It can be concluded that the entire mandate will give positive and negative impact to natural rubber market in Malaysia. Hence, an appropriate mandate has to be implemented to avoid the sudden decrease in the natural rubber production. 2019 Thesis https://etd.uum.edu.my/10334/ https://etd.uum.edu.my/10334/1/depositpermission_s93813.pdf text eng staffonly https://etd.uum.edu.my/10334/2/s93813_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Applanaidu, Shri Dewi Abdullah, Hussin
topic	HB Economic Theory
spellingShingle	HB Economic Theory Nur Hazirah, Md Ludin Impact of biodiesel blend mandate on natural rubber market in Malaysia
description	One of the important elements in Malaysia's natural rubber market is the implementation of biodiesel mandate. This mandate is affecting the supply and demand of natural rubber industry. The main objective of the study is to analyse the impact of biodiesel blend mandate on Malaysian natural rubber market. The specific objectives are to (i) develop a Malaysian natural rubber market model, (ii) examine the impact of biodiesel blend mandate on the natural rubber market supply; (iii) examine the impact of biodiesel blend mandate on the natural rubber market demand; and (iv) examine the impact of biodiesel blend mandate on the natural rubber market price. Two stage least squares (2SLS) estimation method has been applied by using data from year 1985-2016. The market model consists of production, import, domestic consumption, export, domestic and world price equations and closed by using domestic and world stock identities. Biodiesel mandate, interest rate, government expenditure on rural development and agriculture and crude oil price are the new important variables that had been included in natural rubber equations. Biodiesel mandate, interest rate and government expenditure on rural development and agriculture are found to be significant in production equation. While crude oil price is significant in world price equation. The ex-ante analysis results are consistent with the counter/actual analysis. Result shows that there are changes in all of these variables when there is an increase in the mandate. Domestic price shows the highest negative effect on all percentage biodiesel mandate among all endogenous variables in this study. It can be concluded that the entire mandate will give positive and negative impact to natural rubber market in Malaysia. Hence, an appropriate mandate has to be implemented to avoid the sudden decrease in the natural rubber production.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Nur Hazirah, Md Ludin
author_facet	Nur Hazirah, Md Ludin
author_sort	Nur Hazirah, Md Ludin
title	Impact of biodiesel blend mandate on natural rubber market in Malaysia
title_short	Impact of biodiesel blend mandate on natural rubber market in Malaysia
title_full	Impact of biodiesel blend mandate on natural rubber market in Malaysia
title_fullStr	Impact of biodiesel blend mandate on natural rubber market in Malaysia
title_full_unstemmed	Impact of biodiesel blend mandate on natural rubber market in Malaysia
title_sort	impact of biodiesel blend mandate on natural rubber market in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2019
url	https://etd.uum.edu.my/10334/1/depositpermission_s93813.pdf https://etd.uum.edu.my/10334/2/s93813_01.pdf
_version_	1776103793596825600

Impact of biodiesel blend mandate on natural rubber market in Malaysia

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