The Economic Analysis of Biofuel Production: Case Study in Jordan

The world is facing many global challenges, such as sustainable production methods, and adapting to climate change. As a result of the climate change and the developing of the living standard of the people, the pressure on energy and water resource is increasing, and pollution of the air and water as well as the degradation of land are increasing in a tremendous way and will continue to grow. In Jordan, as a poor water country, a low quantity of rainfall, especially in southern Jordan, is a major cause of drought. Consequently, producers will face a bigger productivity drop. Cultivating special plants to produce energy and producing biofuel are considered alternative energy sources. Analysing the use of these alternatives is very complex because the technical issue, environmental, social and economic impact should be assessed. Nevertheless, using scare resources, such as water, and the impact on food security are other variables that should be considered. This study focuses on producing biofuel in an agricultural area from an economic point of view, with specific attention on food and water security as well as the environmental impact. The study depended on a case study that applies planting Jatropha to produce biofuel. As a conclusion the producing oil from Jatropha has high potential to be profitable. Socially and environmentally of producing biofuel from Jatropha is will not be on competition in using the resources with other crops, because it could be planted in marginal land and using low quality water. The growing global demand for liquid biofuel has been seen as a way to create new employment opportunities through the work in the farms or in the biofuel factories, thus leading to increase income generation and rural development, in addition to saving the energy from other sources. (Mohammad I. Majdalawi; Tala Qtaishat; Mohammad A. S. Tabieh and Houthaifa M. Alqubilat. The Economic Analysis of Biofuel Production: Case Study in Jordan. Life Sci J 2014;11(9):131-136). (ISSN:1097-8135). http://www.lifesciencesite.com . 19