University of Vaasa - Vaasan yliopisto

BIO-ECONOMIC AND ENVIRONMENTAL MODELING
OF BIOFUELS ADOPTION IN THE PETROLEUM
SECTOR IN NIGERIA - Research Study Abstract
Abstract
Nelson Abila
Doctoral Candidate
Department of Production
University of Vaasa, Vaasa,
Finland.
545
Biofuels are increasingly making inroads into the energy sector and the demand for them as an
alternative to petroleum is increasing. This surge has been ascribed to concerns over the
diminishing supplies, rising prices, adverse environmental and human health impact from the use
of fossil fuel (West et al 2008, ). The global acceptance of bioenergy as a viable alternative
energy source has set the benchmark for various governments and corporations to explore the
potentials for generating the various forms of bioenergy available within the stretch of their
natural resource endowment. This global adoption of biofuels is symbolic of the display of
corporate responsibility relating governance and corporations in the management of the earth
resources, pursuance of sustainable development and environment. The increase in the use and
subsequent demand for biofuels is creating an international biofuel trade (EPC 2001), with
biofuel markets already fully developed in some countries that have been able to harness their
natural resource for producing biofuels. This increase in demand and adoption of biofuels, by and
large, calls for corporate social and cultural responsibility, to ensure that the world’s poor and the
marginalized communities can participate and benefit from this exploitation, rather than the
reverse. The study seeks to assess the impact of the adoption of biofuels in Nigeria vis-à-vis
socio-economic sustainability, access to land and conflict with other productive ventures as well
as the capacity to expand fortunes and livelihoods of the poor and marginalized community in the
Niger region of the country.
Introduction
Biofuels are increasingly making inroads into the energy sector and the demand for
them as an alternative to petroleum is increasing. This surge has been ascribed to
concerns over the diminishing supplies, rising prices, adverse environmental and
human health impact from the use of fossil fuel (West et al 2008). As the surge in
the interest, adoption and utilization of biofuels in both the producing and consuming
economy (either in developed and developing world), is linked with the increasing
cost of petroleum products as well as the concern to save the environment by
reversing the carbon emission associated with the use of petroleum products, energy
concerns has taking central stage in the global development agenda. This trend
culminated in the emergence of a global bioenergy policy and support in the form of
subsidies, mandates and investments (Keam and McCormick 2008).
The global acceptance of bioenergy as a viable alternative energy source has set the
benchmark for various governments and corporations to explore the potential for