The role of energy system literacy and perceived economic value in driving biomass energy adoption and local value creation: Evidence from smallholder palm oil farmers in Indonesia and Malaysia

Oil palm residues offer substantial potential for renewable energy generation and local economic value creation. This study examines the associations among Energy System Literacy, Perceived Economic Value, Biomass Energy Adoption, and Local Economic Value Creation, while assessing the moderating roles of Institutional Support and Technology Accessibility. Cross-sectional survey data from 367 smallholder oil palm farmers in Indonesia and Malaysia were analyzed using PLS-SEM. Perceived Economic Value was positively associated with Biomass Energy Adoption and Local Economic Value Creation, whereas Energy System Literacy and the moderating effects were not statistically significant. No significant cross-country differences in structural path coefficients were observed. Policy interventions should prioritize economic incentives, viable business models, market access, and technical support.