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Economic and Distributional Impacts of Biofuels in Mali

Author

Listed:
  • Dorothée Boccanfuso

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

  • Massa Coulibaly

    (GREAT -- Groupe de recherche en économie appliqu.e et théorique)

  • Govinda R. Timilsina

    (The World Bank)

  • Luc Savard

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

Abstract

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.

Suggested Citation

  • Dorothée Boccanfuso & Massa Coulibaly & Govinda R. Timilsina & Luc Savard, 2011. "Economic and Distributional Impacts of Biofuels in Mali," Cahiers de recherche 11-08, Departement d'économique de l'École de gestion à l'Université de Sherbrooke, revised May 2011.
    • Handle: RePEc:shr:wpaper:11-08
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1108.pdf
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    1. Christian Otchia, 2014. "Agricultural Modernization, Structural Change and Pro-poor Growth: Policy Options for the Democratic Republic of Congo," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 3(1), pages 1-43, December.

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    More about this item

    Keywords

    Biofuels; agriculture; computable general equilibrium model; micro-simulation; distributional analysis.;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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