Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique

This paper assesses the implications of large-scale investments in biofuels for growth and income distribution. We find that biofuels investment enhances growth and poverty reduction despite some displacement of food crops by biofuels. Overall, the biofuel investment trajectory analyzed increases Mo...

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Autores principales: Arndt, Channing, Benfica, Rui, Tarp, Finn, Thurlow, James, Uaiene, Rafael
Formato: Journal Article
Lenguaje:Inglés
Publicado: Cambridge University Press 2010
Materias:
Acceso en línea:https://hdl.handle.net/10568/153169
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author Arndt, Channing
Benfica, Rui
Tarp, Finn
Thurlow, James
Uaiene, Rafael
author_browse Arndt, Channing
Benfica, Rui
Tarp, Finn
Thurlow, James
Uaiene, Rafael
author_facet Arndt, Channing
Benfica, Rui
Tarp, Finn
Thurlow, James
Uaiene, Rafael
author_sort Arndt, Channing
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper assesses the implications of large-scale investments in biofuels for growth and income distribution. We find that biofuels investment enhances growth and poverty reduction despite some displacement of food crops by biofuels. Overall, the biofuel investment trajectory analyzed increases Mozambique's annual economic growth by 0.6 percentage points and reduces the incidence of poverty by about 6 percentage points over a 12-year phase-in period. Benefits depend on production technology. An outgrower approach to producing biofuels is more pro-poor, due to the greater use of unskilled labor and accrual of land rents to smallholders, compared with the more capital-intensive plantation approach. Moreover, the benefits of outgrower schemes are enhanced if they result in technology spillovers to other crops. These results should not be taken as a green light for unrestrained biofuels development. Rather, they indicate that a carefully designed and managed biofuels policy holds the potential for substantial gains.
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spelling CGSpace1531692024-11-15T08:52:01Z Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique Arndt, Channing Benfica, Rui Tarp, Finn Thurlow, James Uaiene, Rafael biofuels economic growth poverty developing countries mathematical models computable general equilibrium models This paper assesses the implications of large-scale investments in biofuels for growth and income distribution. We find that biofuels investment enhances growth and poverty reduction despite some displacement of food crops by biofuels. Overall, the biofuel investment trajectory analyzed increases Mozambique's annual economic growth by 0.6 percentage points and reduces the incidence of poverty by about 6 percentage points over a 12-year phase-in period. Benefits depend on production technology. An outgrower approach to producing biofuels is more pro-poor, due to the greater use of unskilled labor and accrual of land rents to smallholders, compared with the more capital-intensive plantation approach. Moreover, the benefits of outgrower schemes are enhanced if they result in technology spillovers to other crops. These results should not be taken as a green light for unrestrained biofuels development. Rather, they indicate that a carefully designed and managed biofuels policy holds the potential for substantial gains. 2010-02 2024-10-01T13:55:44Z 2024-10-01T13:55:44Z Journal Article https://hdl.handle.net/10568/153169 en Limited Access Cambridge University Press Arndt, Channing; Benfica, Rui; Tarp, Finn; Thurlow, James; Uaiene, Rafael. 2010. Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique. Environment and Development Economics 15(1): 81-105. https://doi.org/10.1017/S1355770X09990027
spellingShingle biofuels
economic growth
poverty
developing countries
mathematical models
computable general equilibrium models
Arndt, Channing
Benfica, Rui
Tarp, Finn
Thurlow, James
Uaiene, Rafael
Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title_full Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title_fullStr Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title_full_unstemmed Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title_short Biofuels, poverty, and growth: A computable general equilibrium analysis of Mozambique
title_sort biofuels poverty and growth a computable general equilibrium analysis of mozambique
topic biofuels
economic growth
poverty
developing countries
mathematical models
computable general equilibrium models
url https://hdl.handle.net/10568/153169
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