biofuels

Biofuels could offer new economic opportunities for low-income countries. We use a recursive dynamic computable general equilibrium model of Tanzania to evaluate different biofuels production options and estimate their impacts on growth and poverty. Our results indicate that maximizing the poverty-reducing effects of biofuels production in countries like Tanzania will require engaging and improving the productivity of smallholder farmers. Evidence shows that cassava-based ethanol production is more profitable than other feedstock options.

Evaluation of indirect land use changes due to biofuels has been very controversial over the past few years, as doubt has arisen about the potential benefits of growing crops for use as a substitute for fossil fuels. In this paper, we present an overview of a CGE modelling approach, based on the MIRAGE-BioF model. Our framework brings new innovative features that strengthen the relevance of the methodology. In particular, a more detailed and consistent database has been developed to represent the sectors and substitution mechanism at play.

There is rising skepticism about the potential positive environmental impacts of first generation biofuels. Growing biofuel crops could induce diversion of other crops dedicated to food and feed needs. The relocation of production could increase deforestation and bring significant new volumes of carbon into the atmosphere. In this paper, we develop a methodology for assessing the indirect land use change effects related to biofuel policies in a computable general equilibrium framework.

This presentation discusses using MIRAGE-Biof to examine the land use effects of biofuel mandates.