Are Biofuels Good for African Development? An Analytical Framework with Evidence from Mozambique and Tanzania

UNU-WIDER working papers 2010/110. WP/110

Posted: 26 Nov 2014

See all articles by Channing Arndt

Channing Arndt

United Nations - World Institute for Development Economics Research (UNU/WIDER)

James Thurlow

UNU-WIDER; International Food Policy Research Institute (IFPRI)

Siwa Msangi

International Food Policy Research Institute; International Food Policy Research Institute (IFPRI)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2010

Abstract

Many low income countries in Africa are optimistic that producing biofuels domestically will not only reduce their dependence on imported fossil fuels, but also stimulate economic development, particularly in poorer rural areas. Skeptics, on the other hand, view biofuels as a threat to food security in the region and as a landgrabbing opportunity for foreign investors. As a result of this ongoing debate, national biofuels task forces have been asked to evaluate both the viability of domestic biofuels production and its broader implications for economic development. To guide these complex evaluations, this paper presents an analytical framework that prioritizes different aspects of a comprehensive national assessment and identifies suitable evaluation methods. The findings from recent assessments for Mozambique and Tanzania are used to illustrate the framework. While these two country studies found that biofuels investments could enhance development, their experiences highlight potential tradeoffs, especially at the macroeconomic and environmental levels, where further research is needed.

Keywords: biofuels, economic development, food security, poverty, Africa

JEL Classification: Q56, Q42, O44, O55

Suggested Citation

Arndt, Channing and Thurlow, James and Msangi, Siwa, Are Biofuels Good for African Development? An Analytical Framework with Evidence from Mozambique and Tanzania (January 2010). UNU-WIDER working papers 2010/110. WP/110, Available at SSRN: https://ssrn.com/abstract=2530953

Channing Arndt (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6 B
Helsinki, FI‐00160
Finland

James Thurlow

UNU-WIDER ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Siwa Msangi

International Food Policy Research Institute ( email )

2033 K Street NW
Washington, DC 20006
United States
202-862-5663 (Phone)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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