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Macroeconomic and distributional impacts of jatropha-based biodiesel in Mali

Author

Listed:
  • Boccanfuso, Dorothee
  • Coulibaly, Massa
  • Timilsina, Govinda R.
  • Savard, Luc

Abstract

Mali, a landlocked West African nation at the southern edge of the Sahara Desert, has introduced a program to produce biodiesel using jatropha curcas, a non-edible shrub widely available throughout the country by farmers for generations as a living fence for their gardens. The aim of the program is to partially substitute diesel, which is entirely supplied through imports, with domestic biodiesel produced from a feedstock that does not have any commercial value otherwise and thus has zero opportunity cost. This paper uses a computable general equilibrium model to investigate economy-wide and distributional impacts of large-scale jatropha production on different types of lands, and conversion of jatropha oil to biodiesel for domestic consumption. It assesses impacts on agricultural and other commodity markets, resource and factor markets, and international trade. The results are fed into a detailed household survey-based micro-simulation model to assess impacts on poverty and income distribution. The study finds that the expansion of jatropha farming would be beneficial in terms of both macroeconomic and distributional impacts as long as idle lands, which have been neither used for agriculture nor protected as forests, are utilized. However, if jatropha plantation is carried out on existing agriculture lands, the economy-wide impacts would be negative although it would still help reduce rural poverty.

Suggested Citation

  • Boccanfuso, Dorothee & Coulibaly, Massa & Timilsina, Govinda R. & Savard, Luc, 2013. "Macroeconomic and distributional impacts of jatropha-based biodiesel in Mali," Policy Research Working Paper Series 6500, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6500
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    References listed on IDEAS

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    Cited by:

    1. Johanna CHOUMERT & Pascale COMBES MOTEL & Charlain GUEGANG DJIMELI, 2017. "The biofuel-development nexus: A meta-analysis," Working Papers 201709, CERDI.
    2. Timilsina,Govinda R. & Tiwari,Ujjal, 2015. "The economic viability of jatropha biodiesel in Nepal," Policy Research Working Paper Series 7295, The World Bank.
    3. 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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    Keywords

    Economic Theory&Research; Rural Poverty Reduction; Renewable Energy; Markets and Market Access; Labor Policies;

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