Biofuels, poverty, and growth: a computable general equilibrium analysis of Mozambique
AbstractThis paper assesses the implications of large-scale investments in biofuels for growth and income distribution. We find that biofuels investment enhances growth and poverty reduction despite some displacement of food crops by biofuels. Overall, the biofuel investment trajectory analyzed increases Mozambiqueâs annual economic growth by 0.6 percentage points and reduces the incidence of poverty by about six percentage points over a 12-year phase-in period. Benefits depend on production technology. An outgrower approach to producing biofuels is more pro-poor, due to the greater use of unskilled labor and accrual of land rents to smallholders, compared with the more capital-intensive plantation approach. Moreover, the benefits of outgrower schemes are enhanced if they result in technology spillovers to other crops. These results should not be taken as a green light for unrestrained biofuels development. Rather, they indicate that a carefully designed and managed biofuels policy holds the potential for substantial gains.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal Environment and Development Economics.
Volume (Year): 15 (2010)
Issue (Month): 01 (February)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_EDEProvider-Email:email@example.com
Other versions of this item:
- Arndt, Channing & Benfica, Rui M.S. & Tarp, Finn & Thurlow, James & Uaiene, Rafael N., 2008. "Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique," 2009 Conference, August 16-22, 2009, Beijing, China 52004, International Association of Agricultural Economists.
- Arndt, Channing & Benfica, Rui & Tarp, Finn & Thurlow, James & Uaiene, Rafael, 2008. "Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique," IFPRI discussion papers 803, International Food Policy Research Institute (IFPRI).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Finn Tarp, 2006.
"Aid and Development,"
06-12, University of Copenhagen. Department of Economics.
- Channing Arndt & Kenneth R. Simler, 2007. "Consistent poverty comparisons and inference," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 133-139, 09.
- Channing Arndt & Robert C. James & Kenneth R. Simler, 2006. "Has Economic Growth in Mozambique been Pro-Poor?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 571-602, December.
- Resnick, Danielle & Tarp, Finn & Thurlow, James, 2012. "The Political Economy of Green Growth: Illustrations from Southern Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Arndt, Channing & Benfica, Rui M.S. & Thurlow, James, 2012.
"Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique,"
2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil
125395, International Association of Agricultural Economists.
- Arndt, Channing & Benfica, Rui & Thurlow, James, 2011. "Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique," World Development, Elsevier, vol. 39(9), pages 1649-1662, September.
- Negash, Martha, 2012.
"Biofuels and Food Security: Micro-evidence from Ethiopia,"
2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil
126793, International Association of Agricultural Economists.
- Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Channing Arndt & M. Azhar Hussain & E. Samuel Jones & Virgulino Nhate & Finn Tarp & James Thurlow, 2011. "Explaining Poverty Evolution: The Case of Mozambique," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
- Cororaton, Caesar B. & Timilsina, Govinda R., 2012.
"Impacts of large-scale expansion of biofuels on global poverty and income distribution,"
Policy Research Working Paper Series
6078, The World Bank.
- Cororaton, Caesar B. & Timilsina, Govinda R. & Mevel, Simon, 2010. "Impacts Of Large Scale Expansion Of Biofuels On Global Poverty And Income Distribution," Proceedings Issues, 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart- Hohenheim, Germany 91279, International Agricultural Trade Research Consortium.
- McDougal, Topher & Caruso, Raul, 2013. "Wartime Violence and Post-Conflict Development Policy: The Case of Agricultural Concessions in Mozambique," NEPS Working Papers 1/2013, Network of European Peace Scientists.
- Mabiso, Athur, 2012. "Participation of Smallholder Farmers in Biofuels Crop and Land Rental Markets: Evidence from South Africa," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126370, International Association of Agricultural Economists.
- Arndt, Channing & Pauw, Karl & Thurlow, James, 2010. "Biofuels and economic development in Tanzania," IFPRI discussion papers 966, International Food Policy Research Institute (IFPRI).
- Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper 52794, World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If references are entirely missing, you can add them using this form.