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Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania

Author

Listed:
  • Wiskerke, W.T.
  • Dornburg, V.
  • Rubanza, C.D.K.
  • Malimbwi, R.E.
  • Faaij, A.P.C.

Abstract

This study analyzes the economic feasibility of sustainable smallholder bio-energy production under semi-arid conditions. The eastern part of Shinyanga region in Tanzania was chosen as a case study area. Three different sustainable biomass energy supply systems were compared by means of cost/benefit analysis: a small-scale forestation project for carbon sequestration, a short rotation woodlot and a Jatropha plantation, thereby using the produced Jatropha oil as a substitute for fuelwood or diesel. Rotational woodlots are most profitable with a Net Present Value of up to US$2007 1165/ha, a return on labour of up to US$2007 6.69/man-day and a fuelwood production cost of US$2007 0.53/GJ, compared to a local market price of US$2007 1.95/GJ. With a production cost of US$2007 19.60/GJ, Jatropha oil is too expensive to be used as an alternative for fuelwood. Instead it can be utilized economically as a diesel substitute, at an observed diesel cost of US$2007 1.49/l. The mean annual biomass increment (MAI) in semi-arid East Shinyanga is too low to collect sufficient benefits from trading forestation carbon credits under the Clean Development Mechanism (CDM) to cover the costs of forestation and forest management.

Suggested Citation

  • Wiskerke, W.T. & Dornburg, V. & Rubanza, C.D.K. & Malimbwi, R.E. & Faaij, A.P.C., 2010. "Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 148-165, January.
    • Handle: RePEc:eee:rensus:v:14:y:2010:i:1:p:148-165
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    1. Romijn, Henny A. & Caniëls, Marjolein C.J., 2011. "The Jatropha biofuels sector in Tanzania 2005-2009: Evolution towards sustainability?," Research Policy, Elsevier, vol. 40(4), pages 618-636, May.
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    4. Segerstedt, Anna & Bobert, Jans, 2013. "Revising the potential of large-scale Jatropha oil production in Tanzania: An economic land evaluation assessment," Energy Policy, Elsevier, vol. 57(C), pages 491-505.
    5. van Eijck, Janske & Romijn, Henny & Balkema, Annelies & Faaij, André, 2014. "Global experience with jatropha cultivation for bioenergy: An assessment of socio-economic and environmental aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 869-889.
    6. Sandouqa, Arwa & Al-Hamamre, Zayed, 2021. "Economical evaluation of jojoba cultivation for biodiesel production in Jordan," Renewable Energy, Elsevier, vol. 177(C), pages 1116-1132.
    7. Jha, Priyanka & Schmidt, Stefan, 2021. "State of biofuel development in sub-Saharan Africa: How far sustainable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    8. Felix, Mwema, 2015. "Future prospect and sustainability of wood fuel resources in Tanzania," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 856-862.
    9. Gasparatos, A. & von Maltitz, G.P. & Johnson, F.X. & Lee, L. & Mathai, M. & Puppim de Oliveira, J.A. & Willis, K.J., 2015. "Biofuels in sub-Sahara Africa: Drivers, impacts and priority policy areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 879-901.
    10. Lim, Bo Yuan & Shamsudin, Rosnah & Baharudin, B.T. Hang Tuah & Yunus, Robiah, 2015. "A review of processing and machinery for Jatropha curcas L. fruits and seeds in biodiesel production: Harvesting, shelling, pretreatment and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 991-1002.
    11. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.
    12. Maes, Wouter H. & Verbist, Bruno, 2012. "Increasing the sustainability of household cooking in developing countries: Policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4204-4221.
    13. Liu, Xuan & Ye, Meng & Pu, Biao & Tang, Zhikang, 2012. "Risk management for jatropha curcas based biodiesel industry of Panzhihua Prefecture in Southwest China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1721-1734.

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