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Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature

Author

Listed:
  • Johanna Choumert Nkolo

    (Economic Development Initiatives [EDI])

  • Pascale Combes Motel

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)

  • Charlain Guegang Djimeli

    (, DPPP/DGEPIP/MINEPAT - Direction générale de l'économie et de la programmation des investissements publics - Ministry of the Economy)

Abstract

While the production of biofuels has expanded in recent years, findings in the literature on its impact on economic growth and development remain contradictory. This paper presents a meta-analysis of computable general equilibrium (CGE) studies published between 2006 and 2017 on the effect of biofuel production on economic development worldwide. Using 30 CGE studies, we found that biofuel-supportive policies generated significant impacts on GDP and household incomes. CGE studies included in our database reported an average 0.25 percentage point increase in GDP and a 0.49 percentage point increase in household incomes. We also found that results were driven by several key features of the CGE studies included in our database. We investigated features such as biofuel type, geographic area, and characteristics of the CGE models employed. We found that biofuel expansion has heterogeneous effects in developed versus emerging countries. Simulations on longer time periods and in multi-country studies led to results that indicate higher impacts of biofuel expansion on GDP growth and household incomes. Moreover, simulations with an increase in agricultural productivity indicate positive welfare impact gains, unlike simulations with land expansion. Lastly, we found that biodiesel development leads to higher welfare impact gains than that of bioethanol.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Johanna Choumert Nkolo & Pascale Combes Motel & Charlain Guegang Djimeli, 2018. "Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature," Post-Print hal-01700830, HAL.
  • Handle: RePEc:hal:journl:hal-01700830
    DOI: 10.1016/j.ecolecon.2018.01.025
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01700830
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    References listed on IDEAS

    as
    1. Espey, Molly, 1998. "Gasoline demand revisited: an international meta-analysis of elasticities," Energy Economics, Elsevier, vol. 20(3), pages 273-295, June.
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    More about this item

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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