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Biofuel Development and Large-Scale Land Deals in Sub-Saharan Africa

  • Giorgia Giovannetti

    ()

    (Università degli Studi di Firenze)

  • Elisa Ticci

Africa's biofuel potential over the last ten years has increasingly attracted foreign investors’ attention. We estimate the determinants of foreign investors land demand for biofuel production in SSA, using Poisson specifications of the gravity model. Our estimates suggest that land availability, abundance of water resources and weak land governance are significant determinants of large-scale land acquisitions for biofuel production. This in turn suggests that this type of investment is mainly resource-seeking and investors might see land governance weaknesses as a way to access land and water resources at very favorable conditions. Results are robust to different specifications.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2013_27.rdf.

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Length: 26 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:frz:wpaper:wp2013_27.rdf
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