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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Main Authors:	Arndt, Channing, Benfica, Rui, Tarp, Finn, Thurlow, James, Uaiene, Rafael
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Technological Change: Choices and Consequences Diffusion Processes O330 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Alternative Energy Sources Q420
Online Access:	http://hdl.handle.net/10986/4677

id	okr-10986-4677
recordtype	oai_dc
spelling	okr-10986-46772021-04-23T14:02:19Z Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique Arndt, Channing Benfica, Rui Tarp, Finn Thurlow, James Uaiene, Rafael Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Technological Change: Choices and Consequences Diffusion Processes O330 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Alternative Energy Sources Q420 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. 2012-03-30T07:29:11Z 2012-03-30T07:29:11Z 2010 Journal Article Environment and Development Economics 1355770X http://hdl.handle.net/10986/4677 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mozambique
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Technological Change: Choices and Consequences Diffusion Processes O330 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Alternative Energy Sources Q420
spellingShingle	Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Technological Change: Choices and Consequences Diffusion Processes O330 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Alternative Energy Sources Q420 Arndt, Channing Benfica, Rui Tarp, Finn Thurlow, James Uaiene, Rafael Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique
geographic_facet	Mozambique
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
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.
format	Journal Article
author	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
title	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_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_sort	biofuels, poverty, and growth: a computable general equilibrium analysis of mozambique
publishDate	2012
url	http://hdl.handle.net/10986/4677
_version_	1764392357078237184

Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique

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