NDLI: Biofuels and economic development in Tanzania

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Biofuels and economic development in Tanzania

Content Provider	Consultative Group on International Agricultural Research (CGIAR)
Author	Arndt, Channing Pauw, Karl Thurlow, James
Organization	IFPRI - Development Strategy and Governance Division
Spatial Coverage	Tanzania [TZ]
Description	Biofuels provide a new opportunity to enhance economic development in Tanzania. Drawing on detailed cost estimates, we develop a dynamic computable general equilibrium model to estimate the impact of different biofuel production scenarios on growth and poverty. Our results indicate that maximizing the poverty-reducing effects of a biofuels industry in Tanzania requires engaging and improving the productivity of smallholder farmers. Evidence shows that cassava-based ethanol production is more profitable than other feedstock options. Our findings also indicate that cassava generates higher levels of pro-poor growth than do sugarcane-based systems. However, if smallholder yields can be improved rather than expanding cultivated land, then sugarcane and cassava outgrower schemes can produce similar pro-poor outcomes. We conclude that in so far as the public investments needed to establish a biofuels industry in Tanzania are in accordance with national development plans, producing biofuels will contribute to achieving the country's overall development objectives.
Related Links	https://cgspace.cgiar.org/items/710bf7ed-34d4-4632-b356-5e5104796d72
File Format	PDF
Language	English
Publisher	International Food Policy Research Institute
Publisher Date	2010-01-01
Publisher Place	Washington, DC
Access Restriction	Open
Subject Keyword	Biofuels Growth Poverty Computable General Equilibrium Models Cassava
Content Type	Text
Resource Type	Article
Subject	Agronomy and Crop Science Food Science Plant Science

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