Biofuel investment in Tanzania: Omissions in implementation
Increasing demand for biofuels as a component of climate change mitigation, energy security, and a fossil fuel alternative attracts investors to developing countries like Tanzania. Ample unused land is critical for first generation biofuels production and an important feature to attract foreign direct investments that can contribute towards agricultural modernization and poverty reduction initiatives. Despite the economic justifications, the existing institutional and infrastructural capacities dictate the impacts of biofuels market penetrations. Furthermore, exogenous factors like global recessionary pressure depressed oil prices below the level at which biofuel production were profitable in 2007, making Tanzania's competitiveness and potential benefits questionable. This paper investigates the extent that first generation, jatropha-based biofuels industry development in Tanzania observed during fieldwork in Kisarawe and Bahi may fulfill policy objectives. This paper argues that without strong regulatory frameworks for land, investment management, and rural development, biofuel industrialization could further exacerbate poverty and food insecurity in Tanzania. The paper concludes with policy recommendations for first generation biofuel development while keeping in mind implications of second generation production. Since the topic is broad and multifaceted, a multidisciplinary approach is used that includes political, institutional, and agricultural economics to analyze and conceptualize biofuel industry development and food security.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacobsen, Dag Ingvar, 1999. "Trust in Political-Administrative Relations: The Case of Local Authorities in Norway and Tanzania," World Development, Elsevier, vol. 27(5), pages 839-853, May.
- Elobeid Amani & Hart Chad, 2007.
"Ethanol Expansion in the Food versus Fuel Debate: How Will Developing Countries Fare?,"
Journal of Agricultural & Food Industrial Organization,
De Gruyter, vol. 5(2), pages 1-23, December.
- Elobeid, Amani & Hart, Chad E., 2009. "Ethanol Expansion in the Food Versus Fuel Debate: How Will Developing Countries Fare?," Staff General Research Papers 12971, Iowa State University, Department of Economics.
- Agrawal, Arun & Gibson, Clark C., 1999. "Enchantment and Disenchantment: The Role of Community in Natural Resource Conservation," World Development, Elsevier, vol. 27(4), pages 629-649, April.
- Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August.
- Lamers, Patrick & McCormick, Kes & Hilbert, Jorge Antonio, 2008. "The emerging liquid biofuel market in Argentina: Implications for domestic demand and international trade," Energy Policy, Elsevier, vol. 36(4), pages 1479-1490, April.
- Christian Romer Løvendal & Marco Knowles & Naoko Horii, 2004. "Understanding Vulnerability to Food Insecurity Lessons from Vulnerable Livelihood Profiling," Working Papers 04-18, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Oecd, 2006. "Agricultural Market Impacts of Future Growth in the Production of Biofuels," OECD Papers, OECD Publishing, vol. 6(1), pages 1-57.
- van Eijck, Janske & Romijn, Henny, 2008. "Prospects for Jatropha biofuels in Tanzania: An analysis with Strategic Niche Management," Energy Policy, Elsevier, vol. 36(1), pages 311-325, January.
- Wiesenthal, Tobias & Leduc, Guillaume & Christidis, Panayotis & Schade, Burkhard & Pelkmans, Luc & Govaerts, Leen & Georgopoulos, Panagiotis, 2009. "Biofuel support policies in Europe: Lessons learnt for the long way ahead," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 789-800, May.
- Banse, Martin & Grethe, Harald, 2008. "Effects Of A Potential New Biofuel Directive On Eu Land Use And Agricultural Markets," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6331, European Association of Agricultural Economists.
- Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:3985-3997. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.