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Biofuel investment in Tanzania: Omissions in implementation

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  • Habib-Mintz, Nazia
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    Abstract

    Increasing demand for biofuels as a component of climate change mitigation, energy security, and a fossil fuel alternative attracts investors to developing countries like Tanzania. Ample unused land is critical for first generation biofuels production and an important feature to attract foreign direct investments that can contribute towards agricultural modernization and poverty reduction initiatives. Despite the economic justifications, the existing institutional and infrastructural capacities dictate the impacts of biofuels market penetrations. Furthermore, exogenous factors like global recessionary pressure depressed oil prices below the level at which biofuel production were profitable in 2007, making Tanzania's competitiveness and potential benefits questionable. This paper investigates the extent that first generation, jatropha-based biofuels industry development in Tanzania observed during fieldwork in Kisarawe and Bahi may fulfill policy objectives. This paper argues that without strong regulatory frameworks for land, investment management, and rural development, biofuel industrialization could further exacerbate poverty and food insecurity in Tanzania. The paper concludes with policy recommendations for first generation biofuel development while keeping in mind implications of second generation production. Since the topic is broad and multifaceted, a multidisciplinary approach is used that includes political, institutional, and agricultural economics to analyze and conceptualize biofuel industry development and food security.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 8 (August)
    Pages: 3985-3997

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:3985-3997

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    Web page: http://www.elsevier.com/locate/enpol

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    Keywords: Biofuels Tanzania Jatropha;

    References

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    1. Wiesenthal, Tobias & Leduc, Guillaume & Christidis, Panayotis & Schade, Burkhard & Pelkmans, Luc & Govaerts, Leen & Georgopoulos, Panagiotis, 2009. "Biofuel support policies in Europe: Lessons learnt for the long way ahead," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 13(4), pages 789-800, May.
    2. Elobeid Amani & Hart Chad, 2007. "Ethanol Expansion in the Food versus Fuel Debate: How Will Developing Countries Fare?," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 5(2), pages 1-23, December.
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    4. Lamers, Patrick & McCormick, Kes & Hilbert, Jorge Antonio, 2008. "The emerging liquid biofuel market in Argentina: Implications for domestic demand and international trade," Energy Policy, Elsevier, Elsevier, vol. 36(4), pages 1479-1490, April.
    5. van Eijck, Janske & Romijn, Henny, 2008. "Prospects for Jatropha biofuels in Tanzania: An analysis with Strategic Niche Management," Energy Policy, Elsevier, Elsevier, vol. 36(1), pages 311-325, January.
    6. Jacobsen, Dag Ingvar, 1999. "Trust in Political-Administrative Relations: The Case of Local Authorities in Norway and Tanzania," World Development, Elsevier, Elsevier, vol. 27(5), pages 839-853, May.
    7. Christian Romer Løvendal & Marco Knowles & Naoko Horii, 2004. "Understanding Vulnerability to Food Insecurity Lessons from Vulnerable Livelihood Profiling," Working Papers, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) 04-18, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
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    9. Banse, Martin & Grethe, Harald, 2008. "Effects Of A Potential New Biofuel Directive On Eu Land Use And Agricultural Markets," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain, European Association of Agricultural Economists 6331, European Association of Agricultural Economists.
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    Cited by:
    1. Zonin, Valdecir José & Valle Antunes, José Antônio & Pinto Leis, Rodrigo, 2014. "Multicriteria analysis of agricultural raw materials: A case study of BSBIOS and PETROBRAS BIOFUELS in Brazil," Energy Policy, Elsevier, Elsevier, vol. 67(C), pages 255-263.
    2. Segerstedt, Anna & Bobert, Jans, 2013. "Revising the potential of large-scale Jatropha oil production in Tanzania: An economic land evaluation assessment," Energy Policy, Elsevier, Elsevier, vol. 57(C), pages 491-505.
    3. 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, International Agricultural Trade Research Cons 91279, International Agricultural Trade Research Consortium.
    4. German, Laura & Schoneveld, George & Mwangi, Esther, 2013. "Contemporary Processes of Large-Scale Land Acquisition in Sub-Saharan Africa: Legal Deficiency or Elite Capture of the Rule of Law?," World Development, Elsevier, Elsevier, vol. 48(C), pages 1-18.

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