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Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania

Author

Listed:
  • Wiskerke, W.T.
  • Dornburg, V.
  • Rubanza, C.D.K.
  • Malimbwi, R.E.
  • Faaij, A.P.C.

Abstract

This study analyzes the economic feasibility of sustainable smallholder bio-energy production under semi-arid conditions. The eastern part of Shinyanga region in Tanzania was chosen as a case study area. Three different sustainable biomass energy supply systems were compared by means of cost/benefit analysis: a small-scale forestation project for carbon sequestration, a short rotation woodlot and a Jatropha plantation, thereby using the produced Jatropha oil as a substitute for fuelwood or diesel. Rotational woodlots are most profitable with a Net Present Value of up to US$2007 1165/ha, a return on labour of up to US$2007 6.69/man-day and a fuelwood production cost of US$2007 0.53/GJ, compared to a local market price of US$2007 1.95/GJ. With a production cost of US$2007 19.60/GJ, Jatropha oil is too expensive to be used as an alternative for fuelwood. Instead it can be utilized economically as a diesel substitute, at an observed diesel cost of US$2007 1.49/l. The mean annual biomass increment (MAI) in semi-arid East Shinyanga is too low to collect sufficient benefits from trading forestation carbon credits under the Clean Development Mechanism (CDM) to cover the costs of forestation and forest management.

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  • Wiskerke, W.T. & Dornburg, V. & Rubanza, C.D.K. & Malimbwi, R.E. & Faaij, A.P.C., 2010. "Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 148-165, January.
    • Handle: RePEc:eee:rensus:v:14:y:2010:i:1:p:148-165
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    1. Romijn, Henny A. & Caniëls, Marjolein C.J., 2011. "The Jatropha biofuels sector in Tanzania 2005-2009: Evolution towards sustainability?," Research Policy, Elsevier, vol. 40(4), pages 618-636, May.
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    3. van Eijck, Janske & Romijn, Henny & Balkema, Annelies & Faaij, André, 2014. "Global experience with jatropha cultivation for bioenergy: An assessment of socio-economic and environmental aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 869-889.
    4. Sandouqa, Arwa & Al-Hamamre, Zayed, 2021. "Economical evaluation of jojoba cultivation for biodiesel production in Jordan," Renewable Energy, Elsevier, vol. 177(C), pages 1116-1132.
    5. Felix, Mwema, 2015. "Future prospect and sustainability of wood fuel resources in Tanzania," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 856-862.
    6. 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.
    7. Maes, Wouter H. & Verbist, Bruno, 2012. "Increasing the sustainability of household cooking in developing countries: Policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4204-4221.
    8. Liu, Xuan & Ye, Meng & Pu, Biao & Tang, Zhikang, 2012. "Risk management for jatropha curcas based biodiesel industry of Panzhihua Prefecture in Southwest China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1721-1734.
    9. Buytaert, V. & Muys, B. & Devriendt, N. & Pelkmans, L. & Kretzschmar, J.G. & Samson, R., 2011. "Towards integrated sustainability assessment for energetic use of biomass: A state of the art evaluation of assessment tools," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3918-3933.
    10. Segerstedt, Anna & Bobert, Jans, 2013. "Revising the potential of large-scale Jatropha oil production in Tanzania: An economic land evaluation assessment," Energy Policy, Elsevier, vol. 57(C), pages 491-505.
    11. Jha, Priyanka & Schmidt, Stefan, 2021. "State of biofuel development in sub-Saharan Africa: How far sustainable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    12. Lim, Bo Yuan & Shamsudin, Rosnah & Baharudin, B.T. Hang Tuah & Yunus, Robiah, 2015. "A review of processing and machinery for Jatropha curcas L. fruits and seeds in biodiesel production: Harvesting, shelling, pretreatment and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 991-1002.
    13. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.

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