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Household level spillover effects from biofuels: Evidence from castor in Ethiopia

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  • Riera, Olivia
  • Swinnen, Johan

Abstract

The indirect effects of biofuels are mostly considered negative. In this paper, we argue that there may be a positive indirect effect of biofuels on food security and poverty. Using micro-level evidence and a matched plot pair design through which we control for plot and farmer characteristics, we show that the introduction of castor production for biofuel in a poor country as Ethiopia can significantly improve food productivity of rural households who produce raw material for biofuel production. This spillover seems particularly linked to enhanced access to inputs and technical assistance which were provided as part of biofuel feedstock production contracts. Our results thus document another mechanism through which biofuels may influence smallholders’ food security, a mechanism that did not receive attention so far.

Suggested Citation

  • Riera, Olivia & Swinnen, Johan, 2016. "Household level spillover effects from biofuels: Evidence from castor in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 55-65.
    • Handle: RePEc:eee:jfpoli:v:59:y:2016:i:c:p:55-65
    DOI: 10.1016/j.foodpol.2015.12.011
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    4. Mitiku, Fikadu & Nyssen, Jan & Maertens, Miet, 2017. "Can Coffee Certification Promote Land-sharing and Protect Forest in Ethiopia?," Working Papers 253567, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    5. Dalemans, Floris & Muys, Bart & Verwimp, Anne & Van den Broeck, Goedele & Bohra, Babita & Sharma, Navin & Gowda, Balakrishna & Tollens, Eric & Maertens, Miet, 2018. "Redesigning oilseed tree biofuel systems in India," Energy Policy, Elsevier, vol. 115(C), pages 631-643.
    6. Sakketa, Tekalign Gutu & Nkonde, Chewe & Nkonde, Mwelwa & Herrmann, Raoul, 2024. "Spillovers from Foreign Land-Based Investments in Agriculture: Evidence from a Nucleus-Outgrower Scheme in Zambia," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344286, International Association of Agricultural Economists (IAAE).
    7. Logan Cochrane & Eric P. H. Li & Melisew Dejene & M. Mustahid Husain, 2024. "Why foreign agricultural investment fails? Five lessons from Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 541-558, January.
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