Biofuels and economic development in Tanzania
AbstractBiofuels provide a new opportunity to enhance economic development in Tanzania. Drawing on detailed cost estimates, we develop a dynamic computable general equilibrium model to estimate the impact of different biofuel production scenarios on growth and poverty. Our results indicate that maximizing the poverty-reducing effects of a biofuels industry in Tanzania requires engaging and improving the productivity of smallholder farmers. Evidence shows that cassava-based ethanol production is more profitable than other feedstock options. Our findings also indicate that cassava generates higher levels of pro-poor growth than do sugarcane-based systems. However, if smallholder yields can be improved rather than expanding cultivated land, then sugarcane and cassava outgrower schemes can produce similar pro-poor outcomes. We conclude that in so far as the public investments needed to establish a biofuels industry in Tanzania are in accordance with national development plans, producing biofuels will contribute to achieving the country�s overall development objectives.
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 966.
Date of creation: 2010
Date of revision:
Biofuels; Cassava; Computable general equilibrium (CGE) model; Growth; Poverty;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-07-17 (Agricultural Economics)
- NEP-ALL-2010-07-17 (All new papers)
- NEP-CMP-2010-07-17 (Computational Economics)
- NEP-ENE-2010-07-17 (Energy Economics)
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