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Evaluating the economics of biodiesel in Africa

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  • Mulugetta, Yacob

Abstract

Road transport in Sub-Saharan Africa is expected to rise in the coming years. Paradoxically, this expansion is occurring at a time when oil prices have reached new heights. Unstable oil prices do indeed increase the vulnerability of importers. However, it also presents them with a unique opportunity to explore promising technical options to help reduce their over-reliance on imported petroleum fuels. This paper takes a closer look at the potential for biodiesel, with an emphasis on fuels produced from oil palm, castor oil and jatropha in Ghana, Kenya and Tanzania, respectively. The paper provides an economic appraisal of biodiesels from these feedstocks, and sets the context for further discussions on biofuels in Africa.

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  • Mulugetta, Yacob, 2009. "Evaluating the economics of biodiesel in Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1592-1598, August.
    • Handle: RePEc:eee:rensus:v:13:y:2009:i:6-7:p:1592-1598
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    1. Fortenbery, T. Randall, 2005. "Biodiesel Feasibility Study: An Evaluation of Biodiesel Feasibility in Wisconsin," Staff Paper Series 481, University of Wisconsin, Agricultural and Applied Economics.
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    1. van Eijck, Janske & Romijn, Henny & Balkema, Annelies & Faaij, André, 2014. "Global experience with jatropha cultivation for bioenergy: An assessment of socio-economic and environmental aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 869-889.
    2. Halimatussadiah, A. & Nainggolan, D. & Yui, S. & Moeis, F.R. & Siregar, A.A., 2021. "Progressive biodiesel policy in Indonesia: Does the Government's economic proposition hold?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    3. Tito Francisco Ianda & Emerson Andrade Sales & Ademar Nogueira Nascimento & Antonio Domingos Padula, 2020. "Optimizing the Cooperated “Multi-Countries” Biodiesel Production and Consumption in Sub-Saharan Africa," Energies, MDPI, vol. 13(18), pages 1-25, September.
    4. Negash, Martha & Riera, Olivia, 2014. "Biodiesel value chain and access to energy in Ethiopia: Policies and business prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 975-985.
    5. dos Santos Alves, Camila Elisa & Belarmino, Luiz Clovis & Padula, Antonio Domingos, 2017. "Feedstock diversification for biodiesel production in Brazil: Using the Policy Analysis Matrix (PAM) to evaluate the impact of the PNPB and the economic competitiveness of alternative oilseeds," Energy Policy, Elsevier, vol. 109(C), pages 297-309.
    6. Hanff, Elodie & Dabat, Marie-Hélène & Blin, Joël, 2011. "Are biofuels an efficient technology for generating sustainable development in oil-dependent African nations? A macroeconomic assessment of the opportunities and impacts in Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2199-2209, June.
    7. Elisa Portale, 2012. "Socio-Economic Sustainability of Biofuel Production in Sub-Saharan Africa: Evidence from a Jatropha Outgrower Model in Rural Tanzania," CID Working Papers 56, Center for International Development at Harvard University.
    8. Segerstedt, Anna & Bobert, Jans, 2013. "Revising the potential of large-scale Jatropha oil production in Tanzania: An economic land evaluation assessment," Energy Policy, Elsevier, vol. 57(C), pages 491-505.
    9. Ian Duvenage & Ros Taplin & Lindsay Stringer, 2012. "Towards implementation and achievement of sustainable biofuel development in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 14(6), pages 993-1012, December.
    10. Rathmann, Régis & Szklo, Alexandre & Schaeffer, Roberto, 2012. "Targets and results of the Brazilian Biodiesel Incentive Program – Has it reached the Promised Land?," Applied Energy, Elsevier, vol. 97(C), pages 91-100.
    11. Avinash, A. & Subramaniam, D. & Murugesan, A., 2014. "Bio-diesel—A global scenario," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 517-527.
    12. Xinyu Han & Rongrong Li, 2019. "Comparison of Forecasting Energy Consumption in East Africa Using the MGM, NMGM, MGM-ARIMA, and NMGM-ARIMA Model," Energies, MDPI, vol. 12(17), pages 1-24, August.
    13. Harahap, Fumi & Silveira, Semida & Khatiwada, Dilip, 2019. "Cost competitiveness of palm oil biodiesel production in Indonesia," Energy, Elsevier, vol. 170(C), pages 62-72.
    14. Deepayan Debnath & Madhu Khanna & Deepak Rajagopal & David Zilberman, 2019. "The Future of Biofuels in an Electrifying Global Transportation Sector: Imperative, Prospects and Challenges," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 563-582, December.
    15. Lim, Bo Yuan & Shamsudin, Rosnah & Baharudin, B.T. Hang Tuah & Yunus, Robiah, 2015. "A review of processing and machinery for Jatropha curcas L. fruits and seeds in biodiesel production: Harvesting, shelling, pretreatment and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 991-1002.
    16. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.
    17. Wouter M. J. Achten & Navin Sharma & Bart Muys & Erik Mathijs & Paul Vantomme, 2014. "Opportunities and Constraints of Promoting New Tree Crops—Lessons Learned from Jatropha," Sustainability, MDPI, vol. 6(6), pages 1-19, May.

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