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The New Frontier: Welfare Effects of Foreign Biofuel Investments in Africa (Case Study: Sierra Leone)

Author

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  • Lakoh, Kepifri
  • Perrin, Richard K.
  • Fulginiti, Lilyan

Abstract

This research analyzes the market and welfare effects of foreign biofuel investments into Sierra Leone. A log-linear comparative static displacement model is used to carry out the analysis. A 30% demand shock was introduced into the equilibrium system to represent an increase in biofuel demand as a result of increased foreign biofuel investments. Results revealed large welfare enhancing gains for consumers of inedible biofuels but resulted in welfare losses in the staples and edible biofuel consumer markets. Producers (farmers) generally reported welfare gains by virtue of owning factor inputs (land and other). Equilibrium quantities of inedible biofuels, edible biofuels and food increased by about 8.8%, decreased by 0.22% and increased by 0.6% respectively. Prices for both inputs and outputs increased while quantities of inputs also increased.

Suggested Citation

  • Lakoh, Kepifri & Perrin, Richard K. & Fulginiti, Lilyan, 2016. "The New Frontier: Welfare Effects of Foreign Biofuel Investments in Africa (Case Study: Sierra Leone)," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 252534, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:252534
    DOI: 10.22004/ag.econ.252534
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    References listed on IDEAS

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    1. Richard F. Muth, 1964. "The Derived Demand Curve Fora Productive Factor And The Industrysupply Curve," Oxford Economic Papers, Oxford University Press, vol. 16(2), pages 221-234.
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    Cited by:

    1. Lee, Yunkyung, 2020. "Potential economic consequences of gene-edited technology on the U.S. soybean market," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304241, Agricultural and Applied Economics Association.
    2. Lee, Yunkyung, 2021. "Potential market and welfare effects of genetically edited technology in U.S. soybean production," 2021 Annual Meeting, August 1-3, Austin, Texas 314058, Agricultural and Applied Economics Association.
    3. Lee, Yunkyung & Perrin, Richard K. & Fulginiti, Lilyan E., 2022. "Potential Economic Impacts of Gene-edited High-oleic Soybeans," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322392, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; International Development; Resource /Energy Economics and Policy;
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