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

Listed author(s):
  • 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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File URL: http://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp27_2013.pdf
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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
Handle: RePEc:frz:wpaper:wp2013_27.rdf
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  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. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
  3. Deichmann, Uwe & Meisner, Craig & Murray, Siobhan & Wheeler, David, 2011. "The economics of renewable energy expansion in rural Sub-Saharan Africa," Energy Policy, Elsevier, vol. 39(1), pages 215-227, January.
  4. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
  5. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
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