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Economic and Distributional Impacts of Biofuels in Mali

  • Dorothée Boccanfuso

    ()

    (Département d’économique and GRÉDI, Université de Sherbrooke)

  • Massa Coulibaly

    ()

    (GREAT -- Groupe de recherche en économie appliquée et théorique)

  • Govinda R. Timilsina

    ()

    (The World Bank)

  • Luc Savard

    ()

    (Département d’économique and GRÉDI, Université de Sherbrooke)

A biofuels race has been observed around the world with rising cost of oil and the increasing concerns over climate change. Unfortunately, this growth is associated with rising food prices, which is a major concern in developing countries like Mali. The development of biofuels in Mali should contribute to reducing dependency on imported fossil fuels and avoiding competing for land used for food production. This study carries out an economic and distributional impact analysis with a microsimulation and CGE model of the prospects of large-scale expansion jatropha to produce biofuels in Mali. We also investigate the impacts of promoting biofuels through a tax-subsidy scheme. Our results reveal that macro effects are slightly negative or weakly positive but generate reductions in poverty at the national level and for rural households. The pro-poor analysis does not reveal a clear trend with proportional, progressive and regressive outcomes.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1108.pdf
File Function: First version, 2011
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 11-08.

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Length: 28 pages
Date of creation: May 2011
Date of revision: May 2011
Handle: RePEc:shr:wpaper:11-08
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