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Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique

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  • Arndt, Channing
  • Benfica, Rui
  • Tarp, Finn
  • Thurlow, James
  • Uaiene, Rafael

Abstract

"Large private investments in biofuels are presently underway in Mozambique. This paper uses an economywide model to assess the implications of these investments for growth and income distribution. Our results indicate that biofuels provide an opportunity to enhance growth and poverty reduction. Overall, the proposed biofuel investments increase Mozambique's annual economic growth by 0.6 percentage points and reduce the incidence of poverty by about six percentage points over the 12-year phase-in period. However, the benefits depend on production technology. Our results indicate that 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 in this system, compared with the more capital-intensive plantation approach. Moreover, the expected benefits of outgrower schemes will be further enhanced if they result in technology spillovers to other crops." from authors' abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 803.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:803

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Keywords: Biofuels; economic growth; Poverty; Developing countries;

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References

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  1. 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.
  2. 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.
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Cited by:
  1. Resnick, Danielle & Tarp, Finn & Thurlow, James, 2012. "The Political Economy of Green Growth: Illustrations from Southern Africa," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. 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.
  3. 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.
  4. Channing Arndt & M. Azhar Hussain & E. Samuel Jones & Virgulino Nhate & Finn Tarp & James Thurlow, 2011. "Explaining Poverty Evolution: The Case of Mozambique," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  5. Arndt, Channing & Pauw, Karl & Thurlow, James, 2010. "Biofuels and economic development in Tanzania," IFPRI discussion papers 966, International Food Policy Research Institute (IFPRI).
  6. 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.
  7. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper 52794, World Bank.
  8. 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.

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