IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v54y2016icp678-687.html
   My bibliography  Save this article

Determinants of biofuel-oriented land acquisitions in Sub-Saharan Africa

Author

Listed:
  • Giovannetti, Giorgia
  • Ticci, Elisa

Abstract

The recent surge of investors׳ interest for African land has triggered the debate about the drivers and effects of the so-called land grabbing. After a review of the relationship between investment in land and biofuel development in Sub Saharan Africa, we contribute to the existing literature in four dimensions. We use the updated version of Land Matrix whose potentialities are currently underexploited; we concentrate on land deals for cultivating biofuel crops which are emblematic of the food-land-energy nexus; we focus on FDI to the African continent, the most targeted region for land grabbing. Finally, we delve deeper into the influence of institutional quality by testing the role of different institutional dimensions. We find that abundance of water resources and general business conditions, security and regulatory quality facilitate the investment in land for biofuels. As for land governance, what matters is the strength and security of land tenure rights rather than the type of tenure system.

Suggested Citation

  • Giovannetti, Giorgia & Ticci, Elisa, 2016. "Determinants of biofuel-oriented land acquisitions in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 678-687.
  • Handle: RePEc:eee:rensus:v:54:y:2016:i:c:p:678-687
    DOI: 10.1016/j.rser.2015.10.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032115010837
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2015.10.008?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paulo Guimarães & Octávio Figueirdo & Douglas Woodward, 2003. "A Tractable Approach to the Firm Location Decision Problem," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 201-204, February.
    2. Henny Romijn & Sanne Heijnen & Jouke Rom Colthoff & Boris De Jong & Janske Van Eijck, 2014. "Economic and Social Sustainability Performance of Jatropha Projects: Results from Field Surveys in Mozambique, Tanzania and Mali," Sustainability, MDPI, vol. 6(9), pages 1-33, September.
    3. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    4. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    5. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    6. Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20, February.
    7. Yang, Hong & Zhou, Yuan & Liu, Junguo, 2009. "Land and water requirements of biofuel and implications for food supply and the environment in China," Energy Policy, Elsevier, vol. 37(5), pages 1876-1885, May.
    8. Henrik Braconier & Pehr‐Johan Norbäck & Dieter Urban, 2005. "Reconciling the Evidence on the Knowledge‐capital Model," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 770-786, September.
    9. Schoneveld, George Christoffel, 2014. "The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa," Food Policy, Elsevier, vol. 48(C), pages 34-50.
    10. Simone Bertoli & Jesus Fernández-Huertas Moraga, 2012. "Visa Policies, Networks and the Cliff at the Border," Working Papers 2012-12, FEDEA.
    11. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    12. Laura Alfaro & Sebnem Kalemli-Ozcan & Vadym Volosovych, 2008. "Why Doesn't Capital Flow from Rich to Poor Countries? An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 347-368, May.
    13. Gasparatos, A. & von Maltitz, G.P. & Johnson, F.X. & Lee, L. & Mathai, M. & Puppim de Oliveira, J.A. & Willis, K.J., 2015. "Biofuels in sub-Sahara Africa: Drivers, impacts and priority policy areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 879-901.
    14. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    15. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    16. Timilsina, Govinda R. & Shrestha, Ashish, 2010. "Biofuels : markets, targets and impacts," Policy Research Working Paper Series 5364, The World Bank.
    17. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    18. Amigun, Bamikole & Musango, Josephine Kaviti & Stafford, William, 2011. "Biofuels and sustainability in Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1360-1372, February.
    19. Felipa de Mello-Sampayo, 2009. "Competing-destinations gravity model: an application to the geographic distribution of FDI," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2237-2253.
    20. Bracco, Stefania, 2015. "Effectiveness of EU biofuels sustainability criteria in the context of land acquisitions in Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 130-143.
    21. Schmidheiny, Kurt & Brülhart, Marius, 2011. "On the equivalence of location choice models: Conditional logit, nested logit and Poisson," Journal of Urban Economics, Elsevier, vol. 69(2), pages 214-222, March.
    22. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    23. Lorenzo Cotula & Carlos Oya & Emmanuel A. Codjoe & Abdurehman Eid & Mark Kakraba-Ampeh & James Keeley & Admasu Lokaley Kidewa & Melissa Makwarimba & Wondwosen Michago Seide & William Ole Nasha & Richa, 2014. "Testing Claims about Large Land Deals in Africa: Findings from a Multi-Country Study," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 903-925, July.
    24. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    25. Wagle, Swarnim, 2011. "Investing across borders with heterogeneous firms : do FDI-specific regulations matter?," Policy Research Working Paper Series 5914, The World Bank.
    26. Donald Mitchell, 2011. "Biofuels in Africa : Opportunities, Prospects, and Challenges," World Bank Publications - Books, The World Bank Group, number 2541, December.
    27. Mathieu Boche & Ward Anseeuw & T. Kapuya & S. Aubin & I. Sunga, 2012. "Global Land Deals," Post-Print hal-03072578, HAL.
    28. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    29. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    30. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Working Papers hal-02875924, HAL.
    31. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications - Books, The World Bank Group, number 2263, December.
    32. Giorgia Giovannetti & Elisa Ticci, 2013. "Biofuel Development and Large-Scale Land Deals in Sub-Saharan Africa," Working Papers - Economics wp2013_27.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    33. Christian Bellak & Markus Leibrecht, 2009. "Do low corporate income tax rates attract FDI? - Evidence from Central- and East European countries," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2691-2703.
    34. German, Laura & Schoneveld, George & Mwangi, Esther, 2013. "Contemporary Processes of Large-Scale Land Acquisition in Sub-Saharan Africa: Legal Deficiency or Elite Capture of the Rule of Law?," World Development, Elsevier, vol. 48(C), pages 1-18.
    35. Gerbens-Leenes, P.W. & Hoekstra, A.Y. & van der Meer, Th., 2009. "The water footprint of energy from biomass: A quantitative assessment and consequences of an increasing share of bio-energy in energy supply," Ecological Economics, Elsevier, vol. 68(4), pages 1052-1060, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcin Pawel Jarzebski & Abubakari Ahmed & Yaw Agyeman Boafo & Boubacar Siddighi Balde & Linda Chinangwa & Osamu Saito & Graham Maltitz & Alexandros Gasparatos, 2020. "Food security impacts of industrial crop production in sub-Saharan Africa: a systematic review of the impact mechanisms," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(1), pages 105-135, February.
    2. Zhang, Jianjun & Chen, Yang & Rao, Yongheng & Fu, Meichen & Prishchepov, Alexander V., 2017. "Alternative spatial allocation of suitable land for biofuel production in China," Energy Policy, Elsevier, vol. 110(C), pages 631-643.
    3. Tulone, Antonio & Galati, Antonino & Pecoraro, Simone & Carroccio, Anna & Siggia, Dario & Virzì, Michele & Crescimanno, Maria, 2022. "Main intrinsic factors driving land grabbing in the African countries’ agro-food industry," Land Use Policy, Elsevier, vol. 120(C).
    4. Simone Borghesi & Giorgia Giovannetti & Gianluca Iannucci & Paolo Russu, 2019. "The Dynamics of Foreign Direct Investments in Land and Pollution Accumulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 135-154, January.
    5. Atenchong Talleh Nkobou & Andrew Ainslie & Stefanie Lemke, 2022. "Broken promises: a rights-based analysis of marginalised livelihoods and experiences of food insecurity in large-scale land investments in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 185-205, February.
    6. Ruxandra Malina Petrescu-Mag & Hamid Rastegari Kopaei & Dacinia Crina Petrescu, 2021. "What Drives Landowners to Resist Selling Their Land? Insights from Ethical Capitalism and Landowners’ Perceptions," Land, MDPI, vol. 10(3), pages 1-21, March.
    7. Berna Dogan, . "Does FDI in agriculture promote food security in developing countries? The role of land governance," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    8. Conigliani, Caterina & Cuffaro, Nadia & D’Agostino, Giovanna, 2018. "Large-scale land investments and forests in Africa," Land Use Policy, Elsevier, vol. 75(C), pages 651-660.
    9. Zecca, Francesco & D’Errico, Marco, 2021. "Food security and land use: The Ethiopian case," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(2), July.
    10. Lu, Xinhai & Li, Yan & Ke, Shangan, 2020. "Spatial distribution pattern and its optimization strategy of China’s overseas farmland investments," Land Use Policy, Elsevier, vol. 91(C).
    11. Chiara Mazzocchi & Michele Salvan & Luigi Orsi & Guido Sali, 2018. "The Determinants of Large-Scale Land Acquisitions (LSLAs) in Sub-Saharan Africa (SSA): A Case Study," Agriculture, MDPI, vol. 8(12), pages 1-13, December.
    12. Adams, Ellis A. & Kuusaana, Elias D. & Ahmed, Abubakari & Campion, Benjamin B., 2019. "Land dispossessions and water appropriations: Political ecology of land and water grabs in Ghana," Land Use Policy, Elsevier, vol. 87(C).
    13. Marcello De Maria, 2019. "Understanding Land in the Context of Large-Scale Land Acquisitions: A Brief History of Land in Economics," Land, MDPI, vol. 8(1), pages 1-14, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giorgia Giovannetti & Elisa Ticci, 2013. "Biofuel Development and Large-Scale Land Deals in Sub-Saharan Africa," Working Papers - Economics wp2013_27.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Valentina Raimondi & Margherita Scoppola, 2022. "Foreign land acquisitions and environmental regulations: Does the pollution‐haven effect hold?," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 172-194, February.
    3. Scoppola, M. & Raimondi, V., 2018. "Foreign Land Acquisitions and Environmental Regulations: does the Pollution-Haven Hypothesis hold?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277098, International Association of Agricultural Economists.
    4. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    5. Margherita Scoppola & Margherita Scoppola, 2016. "Foreign Direct Investments and trade in agriculture: an incomplete contracts approach," FOODSECURE Working papers 49, LEI Wageningen UR.
    6. Conigliani, Caterina & Cuffaro, Nadia & D’Agostino, Giovanna, 2018. "Large-scale land investments and forests in Africa," Land Use Policy, Elsevier, vol. 75(C), pages 651-660.
    7. Michael Brüntrup & Fabian Schwarz & Thomas Absmayr & Jonas Dylla & Franziska Eckhard & Kerstin Remke & Konrad Sternisko, 2018. "Nucleus-outgrower schemes as an alternative to traditional smallholder agriculture in Tanzania – strengths, weaknesses and policy requirements," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 807-826, August.
    8. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    9. Marcello De Maria, 2019. "Understanding Land in the Context of Large-Scale Land Acquisitions: A Brief History of Land in Economics," Land, MDPI, vol. 8(1), pages 1-14, January.
    10. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    11. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    12. Matthias Bujko & Christian Fischer & Tim Krieger & Daniel Meierrieks, 2016. "How Institutions Shape Land Deals: The Role of Corruption," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 205-217, October.
    13. Kerstin Nolte & Susanne Vaeth, 2013. "Interplay of Land Governance and Large-Scale Agricultural Investment: Evidence from Ghana and Kenya," MAGKS Papers on Economics 201350, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    14. Kareem, Olayinka Idowu, 2018. "The determinants of large-scale land investments in Africa," Land Use Policy, Elsevier, vol. 75(C), pages 180-190.
    15. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2015. "The size of the cliff at the border," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 1-6.
    16. Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip & Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip, 2016. "Large farm establishment, smallholder productivity, labor market participation, and resilience : evidence from Ethiopia," Policy Research Working Paper Series 7576, The World Bank.
    17. Alois Mandondo & Laura German, 2015. "Customary rights and societal stakes of large-scale tobacco cultivation in Malawi," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(1), pages 31-46, March.
    18. Chamberlin, Jordan & Jayne, T. S., 2017. "Does Farm Structure Matter? The Effects of Farmland Distribution Patterns on Rural Household Incomes," Feed the Future Innovation Lab for Food Security Policy Research Papers 275685, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    19. Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen & Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen, 2015. "Quantifying spillover effects from large farm establishments : the case of Mozambique," Policy Research Working Paper Series 7466, The World Bank.
    20. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).

    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:eee:rensus:v:54:y:2016:i:c:p:678-687. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.