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Biofuels and Poverty

In: The Impacts of Biofuels on the Economy, Environment, and Poverty

Author

Listed:
  • Caesar B. Cororaton

    (Culture and Environment, Virginia Polytechnic Institute and State University)

  • Govinda R. Timilsina

    (The World Bank)

Abstract

Several studies have looked at the aggregate economic effects of biofuels (IFPRI 2008; FAO 2008; Ivanic and Martin 2008; Mitchell 2008; Keyzer et al 2008; Hochman et al. 2011; Timilsina et al. 2012), but only few research have focused on analyzing the income distribution and poverty effects of higher increased biofuel at the global level. deHoyos and Medvedev (2011) examine the poverty effects of higher biofuel production using a global CGE model, a model without an explicit representation of biofuel sectors and land-use. Runge and Senauer (2007) examine the impacts of biofuel promoting policies on food prices and poverty and find that policies that promote ethanol have adverse impact on food prices and poverty especially in developing countries. However, the results of some existing studies have reported opposite results. For example, using a computable general equilibrium (CGE) model for Mozambique, Arndt et al. (2008) find that higher sugar cane production generates favorable effects on growth and distribution; the effects on rent to land and wages are relatively higher if production is through smallholders than through large plantations. A study conducted for Mali using CGE and micro-simulation models, Boccanfuso et al. (2013) find that if the expansion of food crops for biofuel production does not compete for land use in agricultural production, agriculture as a whole improves slightly, but if it competes for land with other crops, then agriculture slightly declines. The distributional effects in Mali indicate that urban households who are net consumers of food loss with the expansion of biofuel production because of higher prices of staple food, but the rural households would gain. Hertel (2009) also finds that increased biofuel production results in higher factor returns in developing countries. Habib-Mintz (2010) finds that higher jatropha-based biofuel in Tanzania reduces poverty and food insecurity if strong regulatory frameworks for land, investment management, and rural development are in place.

Suggested Citation

  • Caesar B. Cororaton & Govinda R. Timilsina, 2014. "Biofuels and Poverty," Natural Resource Management and Policy, in: Govinda R. Timilsina & David Zilberman (ed.), The Impacts of Biofuels on the Economy, Environment, and Poverty, edition 127, chapter 0, pages 79-89, Springer.
    • Handle: RePEc:spr:nrmchp:978-1-4939-0518-8_6
    DOI: 10.1007/978-1-4939-0518-8_6
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    Citations

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    Cited by:

    1. Kate Dooley & Sivan Kartha, 2018. "Land-based negative emissions: risks for climate mitigation and impacts on sustainable development," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(1), pages 79-98, February.
    2. Piotr Gradziuk & Barbara Gradziuk & Anna Trocewicz & Błażej Jendrzejewski, 2020. "Potential of Straw for Energy Purposes in Poland—Forecasts Based on Trend and Causal Models," Energies, MDPI, vol. 13(19), pages 1-22, September.
    3. Carlos Omar Trejo-Pech & James A. Larson & Burton C. English & T. Edward Yu, 2019. "Cost and Profitability Analysis of a Prospective Pennycress to Sustainable Aviation Fuel Supply Chain in Southern USA," Energies, MDPI, vol. 12(16), pages 1-18, August.
    4. Murnaghan, Kitty, 2017. "A comprehensive evaluation of the EU's biofuel policy: From biofuels to agrofuels," IPE Working Papers 81/2017, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Antar, Mohammed & Lyu, Dongmei & Nazari, Mahtab & Shah, Ateeq & Zhou, Xiaomin & Smith, Donald L., 2021. "Biomass for a sustainable bioeconomy: An overview of world biomass production and utilization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    6. Piotr Gradziuk & Krzysztof Jończyk & Barbara Gradziuk & Adrianna Wojciechowska & Anna Trocewicz & Marcin Wysokiński, 2021. "An Economic Assessment of the Impact on Agriculture of the Proposed Changes in EU Biofuel Policy Mechanisms," Energies, MDPI, vol. 14(21), pages 1-21, October.
    7. Correa, Diego F. & Beyer, Hawthorne L. & Fargione, Joseph E. & Hill, Jason D. & Possingham, Hugh P. & Thomas-Hall, Skye R. & Schenk, Peer M., 2019. "Towards the implementation of sustainable biofuel production systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 250-263.
    8. Karel Janda & Ladislav Kristoufek, 2019. "The relationship between fuel and food prices: Methods, outcomes, and lessons for commodity price risk management," CAMA Working Papers 2019-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    9. Teodoro Semeraro & Roberta Aretano & Amilcare Barca & Alessandro Pomes & Cecilia Del Giudice & Elisa Gatto & Marcello Lenucci & Riccardo Buccolieri & Rohinton Emmanuel & Zhi Gao & Alessandra Scognamig, 2020. "A Conceptual Framework to Design Green Infrastructure: Ecosystem Services as an Opportunity for Creating Shared Value in Ground Photovoltaic Systems," Land, MDPI, vol. 9(8), pages 1-28, July.
    10. Ladislav Kristoufek & Karel Janda & David Zilberman, 2015. "Co-movements of Ethanol Related Prices: Evidence from Brazil and the USA," CAMA Working Papers 2015-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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