Are biofuels good for African development? An analytical framework with evidence from Mozambique and Tanzania

Abstract

Many low income countries in Africa are optimistic that producing biofuels domestically will not only reduce their dependence on imported fossil fuels, but also stimulate economic development, particularly in poorer rural areas. Skeptics, on the other hand, view biofuels as a threat to food security in the region and as a landgrabbing opportunity for foreign investors. As a result of this ongoing debate, national biofuels task forces have been asked to evaluate both the viability of domestic biofuels production and its broader implications for economic development. To guide these complex evaluations, this paper presents an analytical framework that prioritizes …./

A review of the ecological and socioeconomic effects of biofuel and energy policy recommendations

“…The introduction of biofuel could increase the availability of technical knowledge and the availability of inputs for farmers who can imitate similar techniques and apply inputs (i.e. fertilizers) to food crops plantations [87]. Negash and Swinnen [88] also found in Ethiopia that spillover effects could improve food productivity that offset the amount of land diverted to biofuel.…”

Global economic effects of US biofuel policy and the potential contribution from advanced biofuels

“…In the Chen and Khanna study, which uses a dynamic programming model of the US agricultural and fuel markets, corn and soybean prices increase by 20-50% in 2022 under three scenarios with different combinations of the RFS2, biofuel tax credits and tariffs on ethanol imports [7]. Estimates of the economic impacts of biofuel policies in other regions are also mixed [8][9][10][11][12][13][14].…”

Household Level Spillover Effects from Biofuels

“…Some studies on the impact of biofuels suggest that biofuel investments provide alternative income through employment, boost economic growth, and thereby reduce the incidence of poverty and improve food security (Arndt et al, 2011;Huang et al, 2012;Negash & Swinnen, 2013). Others show that biofuel expansion reduces the availability of food and increases food prices, thereby jeopardizing food security for the poor (FAO, 2008;von Braun et al 2008;Mitchell, 2008;Zhang et al 2013).…”