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Economy-wide implications of biofuel production in Zambia

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Listed:
  • Faaiqa Hartley
  • Dirk van Seventer
  • Paul Chimuka Samboko
  • Channing Arndt

Abstract

Potential biofuel demand in South Africa is estimated to increase to 1550 million litres by 2025 due to mandatory blending rates. Land and water constraints, however, limit the ability for domestic production. Zambia, due to its abundance in land, suitable climate, supportive set of bioenergy incentives and close geographical location to South Africa, has the potential to meet this increase in demand. Using a dynamic recursive computable general equilibrium model, we estimate the macro- and socio-economic impacts of bioethanol production in Zambia from three potential crops: sugarcane, cassava and sweet sorghum. The results show that the development of a single product bioethanol industry has the potential to increase economic growth without negatively affecting overall food security. Further expansion of the industry to multiple products results in larger gains to growth and welfare.

Suggested Citation

  • Faaiqa Hartley & Dirk van Seventer & Paul Chimuka Samboko & Channing Arndt, 2019. "Economy-wide implications of biofuel production in Zambia," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 213-232, March.
    • Handle: RePEc:taf:deveza:v:36:y:2019:i:2:p:213-232
    DOI: 10.1080/0376835X.2018.1485552
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    1. Sitko, Nicholas J. & Chapoto, Antony & Kabwe, Stephen & Tembo, Solomon & Hichaambwa, Munguzwe & Lubinda, Rebecca & Chiwawa, Harrison & Mataa, Mebelo & Heck, Simon & Nthani, Dorothy, 2011. "Technical Compendium: Descriptive Agricultural Statistics and Analysis for Zambia in Support of the USAID Mission’s Feed the Future Strategic Review," Food Security Collaborative Working Papers 104016, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    1. Faaiqa Hartley & Dirk van Seventer & Emilio Tostão & Channing Arndt, 2019. "Economic impacts of developing a biofuel industry in Mozambique," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 233-249, March.
    2. Haroon Bhorat & Francois Steenkamp & Caitlin Allen & Robert Hill & Christopher Rooney, 2019. "Building Economic Complexity in the South African Fibrous Plant Economy," Working Papers copwp201904, University of Cape Town, Development Policy Research Unit.
    3. Jocelyn Alejandra Cortez-Núñez & María Eugenia Gutiérrez-Castillo & Violeta Y. Mena-Cervantes & Ángel Refugio Terán-Cuevas & Luis Raúl Tovar-Gálvez & Juan Velasco, 2020. "A GIS Approach Land Suitability and Availability Analysis of Jatropha Curcas L. Growth in Mexico as a Potential Source for Biodiesel Production," Energies, MDPI, vol. 13(22), pages 1-23, November.
    4. Jha, Priyanka & Schmidt, Stefan, 2021. "State of biofuel development in sub-Saharan Africa: How far sustainable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).

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