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Modelling the impacts of the industrial biofuels strategy on the South African agricultural and biofuel subsectors

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  • Funke, Thomas
  • Strauss, P.G.
  • Meyer, Ferdinand H.

Abstract

The potential impact of the current South African industrial biofuels strategy on the economic feasibility of biofuel production in South Africa is analysed and discussed. The analysis is then taken a step further by means of a scenario to analyse the potential impacts of higher global prices on the feasibility of a local biofuel industry. The BFAP sector model, a partial equilibrium model, is used to simulate the various impacts over the period 2009 to 2017. This study shows that the incentives and commitments, as presented through the strategy, are not sufficient to get a local biofuel industry up and running and make it sustainable in the long term.

Suggested Citation

  • Funke, Thomas & Strauss, P.G. & Meyer, Ferdinand H., 2009. "Modelling the impacts of the industrial biofuels strategy on the South African agricultural and biofuel subsectors," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-22, September.
    • Handle: RePEc:ags:agreko:54988
    DOI: 10.22004/ag.econ.54988
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    References listed on IDEAS

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    1. Westhoff, Patrick C., 2008. "Farm Commodity Prices: Why the Boom and What Happens Now?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(2), pages 1-5.
    2. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
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    Cited by:

    1. Pradhan, Anup & Mbohwa, Charles, 2014. "Development of biofuels in South Africa: Challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1089-1100.
    2. Sparks, G.D. & Ortmann, Gerald F. & Lagrange, L., 2010. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in the Soybean-Producing Regions of KwaZulu-Natal: Some Preliminary Results," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95980, African Association of Agricultural Economists (AAAE).

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