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GTAP Resource #3022

"Bioenergy development and Food Security: A Global CGE application to Peru and Tanzania"
by Elbehri, Aziz, Robert McDougall, Mark Horridge and Piero Conforti

In this paper we develop a multi-country variation of GTAP-E CGE model, featuring biomass and bioenergy sectors (1st and 2nd generation biofuels, biopower) and allowing for different fuel-biomass substitution nesting structure on the production side. The model is applied to examine the food security implications of biofuels development in two developing countries Peru and Tanzania. Many developing countries are on different paths of biofuel developments lured by the promise of agricultural development, employment, rural economy revitalization and export opportunities to high demand industrialized markets. The paper reports preliminary results from a CGE analysis that assessed the production, trade and price effects of expanding into ethanol from sugar cane (and cassava in Tanzania only) and into biodiesel from palm oil (and canola oil in Peru only). At the level of biofuel expansion planned in Peru and Tanzania, results show contrasting effects on food crops, trade balances and welfare depending on biofuel type (ethanol versus biodiesel) and feedstock used (sugar cane versus cassava); results also show that when feedstock expansion comes largely from substitution with land-using activities, welfare effects are not unambiguously welfare enhancing; implications for food security and long term sustainability are addressed.

Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Created: Elbehri, A. (4/14/2009)
Updated: Elbehri, A. (4/14/2009)
Visits: 3,717
- Economic development
- Renewable energy

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