IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/966.html
   My bibliography  Save this paper

Biofuels and economic development in Tanzania

Author

Listed:
  • Arndt, Channing
  • Pauw, Karl
  • Thurlow, James

Abstract

Biofuels provide a new opportunity to enhance economic development in Tanzania. Drawing on detailed cost estimates, we develop a dynamic computable general equilibrium model to estimate the impact of different biofuel production scenarios on growth and poverty. Our results indicate that maximizing the poverty-reducing effects of a biofuels industry in Tanzania requires engaging and improving the productivity of smallholder farmers. Evidence shows that cassava-based ethanol production is more profitable than other feedstock options. Our findings also indicate that cassava generates higher levels of pro-poor growth than do sugarcane-based systems. However, if smallholder yields can be improved rather than expanding cultivated land, then sugarcane and cassava outgrower schemes can produce similar pro-poor outcomes. We conclude that in so far as the public investments needed to establish a biofuels industry in Tanzania are in accordance with national development plans, producing biofuels will contribute to achieving the countrys overall development objectives.

Suggested Citation

  • Arndt, Channing & Pauw, Karl & Thurlow, James, 2010. "Biofuels and economic development in Tanzania," IFPRI discussion papers 966, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:966
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp00966.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Klaus Deininger, 2003. "Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15125.
    2. Coyle, William T., 2007. "The Future of Biofuels: A Global Perspective," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6, November.
    3. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    4. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    5. Arndt, Channing & Benfica, Rui & Tarp, Finn & Thurlow, James & Uaiene, Rafael, 2010. "Biofuels, poverty, and growth: a computable general equilibrium analysis of Mozambique," Environment and Development Economics, Cambridge University Press, vol. 15(1), pages 81-105, February.
    6. Kretschmer, Bettina & Peterson, Sonja, 2010. "Integrating bioenergy into computable general equilibrium models -- A survey," Energy Economics, Elsevier, vol. 32(3), pages 673-686, May.
    7. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    8. Hiroyuki, KAWASHIMA, 2009. "World Food Production and Biomass Energy Outlook for 2050," Journal of Rural Economics, Agricultural Economics Society of Japan, vol. 81(2), pages 1-11, September.
    9. repec:fpr:2020br:14(8 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vang Rasmussen, Laura & Rasmussen, Kjeld & Birch-Thomsen, Torben & Kristensen, Søren B.P. & Traoré, Oumar, 2012. "The effect of cassava-based bioethanol production on above-ground carbon stocks: A case study from Southern Mali," Energy Policy, Elsevier, vol. 41(C), pages 575-583.
    2. Ferede, Tadele & Gebreegziabher, Zenebe & Mekonnen, Alemu & Guta, Fantu & Levin, Jörgen & Köhlin, Gunnar, 2013. "Biofuels, Economic Growth, and the External Sector in Ethiopia: A Computable General Equilibrium Analysis," RFF Working Paper Series dp-13-08-efd, Resources for the Future.
    3. François Joseph Cabral & Fatou Cissé & Abdoulaye Diagne & Msangi Siwa, 2017. "Global Biofuel Production and Poverty in Senegal," Economics Bulletin, AccessEcon, vol. 37(3), pages 1435-1449.
    4. Gatete, Charly & Dabat, Marie-Helene, 2014. "Développement des agrocarburants en Afrique de l’Ouest. Une analyse institutionnelle comparative," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 344(November-).
    5. Faße, Anja & Winter, Etti & Grote, Ulrike, 2014. "Bioenergy and rural development: The role of agroforestry in a Tanzanian village economy," Ecological Economics, Elsevier, vol. 106(C), pages 155-166.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arndt, Channing & Pauw, Karl & Thurlow, James, 2012. "Biofuels and economic development: A computable general equilibrium analysis for Tanzania," Energy Economics, Elsevier, vol. 34(6), pages 1922-1930.
    2. Johanna Choumert & Pascale Combes Motel & Charlain Guegang Djimeli, 2017. "The biofuel-development nexus: A meta-analysis," CERDI Working papers halshs-01512678, HAL.
    3. Choumert Nkolo, Johanna & Combes Motel, Pascale & Guegang Djimeli, Charlain, 2018. "Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature," Ecological Economics, Elsevier, vol. 147(C), pages 230-242.
    4. Nanda, Sonil & Azargohar, Ramin & Dalai, Ajay K. & Kozinski, Janusz A., 2015. "An assessment on the sustainability of lignocellulosic biomass for biorefining," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 925-941.
    5. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    6. Argueyrolles, Robin & Delzeit, Ruth, 2022. "The interconnections between Fossil Fuel Subsidy Reforms and biofuels," Conference papers 333492, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Valin, Hugo & Havlik, Petr & Mosnier, Aline & Obersteiner, Michael, 2012. "Impacts of Alternative Climate Change Mitigation Policies on Food Consumption under various Diet Scenarios," Conference papers 332253, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Cheteni, Priviledge, 2017. "Sustainability development: Biofuels in agriculture," MPRA Paper 80969, University Library of Munich, Germany, revised 24 Jun 2017.
    9. Oladosu, Gbadebo & Kline, Keith, 2013. "A dynamic simulation of the ILUC effects of biofuel use in the USA," Energy Policy, Elsevier, vol. 61(C), pages 1127-1139.
    10. Marvuglia, Antonino & Benetto, Enrico & Rege, Sameer & Jury, Colin, 2013. "Modelling approaches for consequential life-cycle assessment (C-LCA) of bioenergy: Critical review and proposed framework for biogas production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 768-781.
    11. Keles, Derya & Choumert-Nkolo, Johanna & Combes Motel, Pascale & Nazindigouba Kéré, Eric, 2018. "Does the expansion of biofuels encroach on the forest?," Journal of Forest Economics, Elsevier, vol. 33(C), pages 75-82.
    12. Hoekman, S. Kent & Broch, Amber, 2018. "Environmental implications of higher ethanol production and use in the U.S.: A literature review. Part II – Biodiversity, land use change, GHG emissions, and sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3159-3177.
    13. 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.
    14. Dorothée BOCCANFUSO & Massa COULABY & Govinda R TIMILSINA & Luc SAVARD, 2010. "Economic and Distributional Impact of Bio-Fuels in Mali," EcoMod2010 259600032, EcoMod.
    15. da Silveira, Rodrigo Lanna F. & Mattos, Fabio L., 2015. "Price And Volatility Transmission In Livestock And Grain Markets: Examining The Effect Of Increasing Ethanol Production Across Countries," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205684, Agricultural and Applied Economics Association.
    16. Sievers, Luisa & Schaffer, Axel, 2016. "The impacts of the German biofuel quota on sectoral domestic production and imports of the German economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 497-505.
    17. Vincent Martinet, 2012. "Effect of soil heterogeneity on the welfare economics of biofuel policies," Working Papers 2012/01, INRA, Economie Publique.
    18. Austin, K.G. & Jones, J.P.H. & Clark, C.M., 2022. "A review of domestic land use change attributable to U.S. biofuel policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    19. Sajedinia, Ehsanreza & Tyner, Wally, 2017. "Use of General Equilibrium Models in Evaluating Biofuels Policies," Conference papers 332885, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Zhang, Wei & Yu, Elaine A. & Rozelle, Scott & Yang, Jun & Msangi, Siwa, 2013. "The impact of biofuel growth on agriculture: Why is the range of estimates so wide?," Food Policy, Elsevier, vol. 38(C), pages 227-239.

    More about this item

    Keywords

    Biofuels; Cassava; Computable general equilibrium (CGE) model; Growth; Poverty;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.