| Summary: | The development of new bio-based diesel substitutes can improve their compatibility with diesel engines. Nevertheless, for actual implementation, their environmental and economic performance needs to be studied. This study quantified the eco-efficiency of three bio-based diesels, viz., fatty acid methyl ester (FAME), partially hydrogenated FAME (H-FAME), and bio-hydrogenated diesel (BHD), to address the perspective of producers as well as policymakers for implementing the advanced diesel alternatives. The eco-efficiency was assessed as a ratio of life cycle costing as the economic indicator and three different environmental damages—human health, ecosystem quality, and resource availability. The eco-efficiency of FAME was the most favorable among all the potential substitutes with regard to human health and ecosystem quality, but the least favorable for resource availability impact. Even though BHD was beneficial in terms of life cycle costing, it was the least preferable when considering human health and ecosystem quality, though it performed the best for resource availability. H-FAME was also promising, in line with FAME. It is suggested that the technologies for BHD production should be improved, especially the catalyst used, which contributed greatly to environmental impacts and costs.
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