IDEAS home Printed from https://ideas.repec.org/a/ags/eeaeje/343204.html
   My bibliography  Save this article

Profitability of Bioethanol Production: The Case of Ethiopia

Author

Listed:
  • Gebreegziabher, Zenebe
  • Mekonnen, Alemu
  • Ferede, Tadele
  • Kohlin, Gunnar

Abstract

This research investigates the profitability of bioethanol production in Africa, taking Ethiopia as a case in point, and suggests an oil price threshold beyond which biofuels may be profitable. Specifically, the study analyzes the viability of producing bioethanol from molasses in the context of Ethiopia, using data from a biofuels investment survey by EEPFE/EDRI in 2010. We draw on investment theory as our underlying conceptual framework and we employ unit cost analysis for our empirical analysis. Findings reveal that bioethanol production (from molasses) in Africa/Ethiopia can be quite viable and the biofuels industry can be viewed as a way out of poverty. This is a case study involving a few observations because of the small size of the universe of producers studied, hence the need for further analysis as the sector expands.

Suggested Citation

  • Gebreegziabher, Zenebe & Mekonnen, Alemu & Ferede, Tadele & Kohlin, Gunnar, 2017. "Profitability of Bioethanol Production: The Case of Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 26(01), April.
    • Handle: RePEc:ags:eeaeje:343204
    DOI: 10.22004/ag.econ.343204
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/343204/files/Profitability%20of%20bioethanol.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.343204?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eeaeje:343204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eeaa2ea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.