SOCIO-ECONOMIC STUDY

SOCIO-ECONOMIC
STUDY

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Chapter VI

SOCIO-ECONOMIC ASPECT

6.1 Green Fuel Socio-Economic and Environmental Goals

Social and economic indicators can be used to support in the design of

sustainable energy systems. Socio-economic and environmental indicators of progress

toward bioenergy sustainability are used for designing facilities and assessing effects of

scenarios, making comparison among energy technology options, and quantifying

compliance with sustainability targets at facility, regional, and national scales. Biofuels

producers use sustainability indicators to make decisions about siting, cultivation,

logistics, conversion, and fuel blends based on projections into future or retrospective

measures.

The energy security indicators energy security premium and fuel price volatility

and external trade indicators terms of trade and trade volume cannot be projected into

the future with accuracy prior to commercialization. Together with environmental

sustainability indicators, the use of a suite of socio-economic sustainability indicators

should contribute to progress toward sustainability of algae biofuels.

The socio-economic aspect of the business depends on how it affects the

individuals in the society considering of what impact the policy does to a business can

adopt and implement towards the good of the public. Wherein in this part, it talk about

the summary and findings, the impact of the study, the economy, government, market,

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supplier and customers benefits and other information that can help in determining the

feasibility of socio-economic.

Basically, the business cannot operate without any involvement from the public. It

pays taxes; it renders services and goods, buys materials, and employs people and

others. They also get permits to any branch of the government. But since the profit is an

important value to the business does not mean it should not overdue their

responsibilities as a society created economic institutions.

6.2.1 Government

The Green fuel Petroleum Corporation has the responsibility to file and

pay taxes to the respective government agencies, Bureau of Internal Revenue

(BIR) for public information purposes showing transparency and accountability.

6.2.2 Environment

Environmental sustainability indicators have been evaluated for the

applicability to algae biofuels and some environmental sustainability effects has

been measured. The designation of several algal-oil-containing renewable

diesels and cyanobacteria-generated ethanol as renewable fuel standard

advanced biofuels reflects evidence that manufacturing process reduce GHG

emissions.

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The facilitation of a clean environment and effective environment

protection is a fundamental aspect of good business operations. Department of

Environment and Natural Resources (DENR) recognizes that the businesses of

Green Fuel Petroleum Corporation, all its activities have an impact on its place

locally, within Philippines and hopefully impacts globally. Therefore, it is a policy

to minimize the impact of the operations on the environment.

The Green fuel Petroleum Corporation is committed to pollution prevention

through the ongoing identification and control of those significant environmental

impacts associated w/ our activities these are ff.: Carbon dioxide emission, Water

consumption, Waste management, Electricity and space air conditioning and

Gasoline transportation.

6.2.3 Economic

Of or relating to an economy, the systems of production and management

of materials wealth. Also indicate to the commercial scale or measured at the

pilot or laboratory scale, as well as factors that affect them, and discuss

additional indicators that should be measured during commercialization.

Indicators estimated in the scientific literature include the profitability indicators,

return of investment (ROI) and net present value (NPV), and the resource

conservation indicator, fossil energy return on investment (EROI).

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6.2.4 Workers and Customers

The business will be acceptable in the market and may also have a big

chance to survive because the service rendered is cheaper and high quality

when compared to that of competitor’s service renders and offers easy access

and affordable price for them.

6.2.5 Suppliers

Suppliers will also be benefited as a result of the realization of the

proposed business since they are responsible on making it and distributing it to

the gasoline station upon making it to the available materials in market, tools,

machineries and equipment for the effective operation of the business.

6.2.6 Other Society Created Institution

Considering the Green Fuel Petroleum Corporation is located in Sitio

Bakante, Tayud, Liloan and its service station is located at Cebu North Coastal

Road in Tayud, Liloan Cebu, they are expected to visit the gasoline station and

the plant also for more updates.

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6.3 Impact Assessment

In its broadest sense, impact assessment is the process of identifying the

anticipated or actual impacts of a development intervention, on those social, economic

and environmental factors which the intervention is designed to affect or may

inadvertently affect. The impact of the Green Fuel Petroleum Corporation to the valued

customers most especially to the motorcycle and car users is that it can provide the

needs for fuel distribution who are using the motorcycle and car users and may be able

to enjoy the freebies items of the said station. Furthermore, it provides the best

information of the said Corporation and gas station in improving the design of future

interventions.

6.3.1 Cost Benefit Analysis

Cost- Benefit Analysis (CBA) estimates and totals up the equivalent

monetary value of the benefits and costs to the community of projects to

establish whether they are worthwhile. These projects may be the facility costs,

supply and materials costs, computer usage costs, equipment costs and the

systems cost of the operating facility and delivery costs of the fuel output into the

gasoline station.

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6.3.2 Payback Period

Payback period is the length of time required for an investment to recover

its initial outlay in terms of profits or savings. It is computed using the formula:

Payback period = Investment / Accumulated Net Income

= 14,000,000.00 / 738,089.63

= 18.97 years

The payback period seems to be that lengthy since the investment is quite

big. For the kind of business, first and foremost, the payback is already expected

to be longer.

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