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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. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
  3. 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), Centre for the Study of African Economies (CSAE), vol. 15(4), pages 571-602, December.
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Citations

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Cited by:
  1. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper, World Bank 52794, World Bank.
  2. Arndt, Channing & Pauw, Karl & Thurlow, James, 2010. "Biofuels and economic development in Tanzania," IFPRI discussion papers 966, International Food Policy Research Institute (IFPRI).
  3. 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).
  4. McDougal, Topher & Caruso, Raul, 2013. "Wartime Violence and Post-Conflict Development Policy: The Case of Agricultural Concessions in Mozambique," NEPS Working Papers, Network of European Peace Scientists 1/2013, Network of European Peace Scientists.
  5. 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.
  6. 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.
  7. Huang, Jikun & Yang, Jun & Msangi, Siwa & Rozelle, Scott & Weersink, Alfons, 2012. "Biofuels and the poor: Global impact pathways of biofuels on agricultural markets," Food Policy, Elsevier, vol. 37(4), pages 439-451.
  8. Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  9. Hannah Schuerenberg-Frosch, 2012. "How to model a child in school? A dynamic macro-simulation study for Tanzania," EcoMod2012 4159, EcoMod.
  10. 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).
  11. Branca, Giacomo & Felix, Erika & Maltsoglou, Irini & Rincon, Luis E. & Thurlow, James, 2014. "Producing biofuels in low-income countries: An integrated environmental and economic assessment for Tanzania," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. Hvid, Anna Kirstine & Henningsen, Geraldine Adrienne, 2014. "A new scramble for land or an unprecedented opportunity for the rural poor? Distributional consequences of increasing land rents in developing countries," MPRA Paper 52919, University Library of Munich, Germany.
  13. World Bank, 2008. "Higher Fuel and Food Prices : Impacts and Responses for Mozambique," World Bank Other Operational Studies 18909, The World Bank.
  14. 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, International Association of Agricultural Economists 126370, International Association of Agricultural Economists.
  15. Vitezslav Pisa & Jan Bruha & Vitezslav Pisa, 2011. "Dynamics of the Commodity Prices and Quantities: An Analysis using a Dynamic Multiregional CGE Model," EcoMod2011 2889, EcoMod.

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