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Global Biofuel Production and Poverty in Senegal

Author

Listed:
  • François Joseph Cabral

    (University Cheikh Anta Diop of Dakar)

  • Fatou Cissé

    (University Cheikh Anta Diop of Dakar)

  • Abdoulaye Diagne

    (University Cheikh Anta Diop of Dakar)

  • Msangi Siwa

    (International Food Policy Research Institute)

Abstract

Assessing the potential effects of a world biofuel boom on a non-oil producing economy like Senegal and on its households is relevant when it comes for policymakers to make a trade-off between fossil energy and biofuel. In this paper, we run a simulation, based on a dynamic, general-equilibrium model for the period 2006-2020, to capture the effects of the boom of biofuel in the world market on growth and poverty in Senegal. Our results suggest that, due to decreasing prices, imports increase for crude oil, tradable services and non food industries. Valued-added of biodiesel and bioethanol decreases while it increases for most the sectors, in particular those which are more energy intensive. Poverty is quite constant for the first sub-period but it declines thereafter. The households living in urban areas experienced a more deep decrease in their poverty headcount than the one of rural areas.

Suggested Citation

  • François Joseph Cabral & Fatou Cissé & Abdoulaye Diagne & Msangi Siwa, 2017. "Global Biofuel Production and Poverty in Senegal," Economics Bulletin, AccessEcon, vol. 37(3), pages 1435-1449.
    • Handle: RePEc:ebl:ecbull:eb-17-00157
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    References listed on IDEAS

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    1. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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.
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    Cited by:

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    3. E. T. Adamgbe & M. C. Belonwu & E. R. Ochu & I. I. Okafor, 2020. "Analysis of the Impact of Central Bank of Nigeria's Agricultural Intervention Funds on the Economy," Economic and Financial Review, Central Bank of Nigeria, vol. 58(1), March.

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    More about this item

    Keywords

    biofuel; agriculture; economic growth; price; poverty; CGE;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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