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GTAP Resource #6600

by Falobi, Emmanuel Omoniyi, Olugbenga A Falode and Adeola Adenikinju

Nigeria’s quest for environmentally friendly cleaner energy and the need to improve the quality of automotive fossil-based fuels conforms with global initiative to mitigate climate change effect. This necessitated the enactment of the Nigerian Biofuel Policy and Incentives (2007) . The Policy initiative had set a bioethanol target of 1.27 billion litres per year to achieve a blend of 10% ethanol (E-10) in gasoline by 2010 using cassava and sugar cane as feedstocks. Globally, computable general equilibrium (CGE) models have been extensively employed to study the impacts of climate change and biofuel policy initiatives. However, there is a gap in the literature on the economic and environmental impacts of biofuel promotion in Nigeria. Hence, this study mainly examines the economy-wide impacts of biofuels policy in Nigeria. We employ a recursive-dynamic CGE-GTAP model approach calibrated to a revised 2010 Nigeria’s Social Accounting Matrix (SAM) database (Nwafor, et al., 2010), to capture direct and indirect feedbacks of the policy. Policy simulations on impacts of greenhouse gas (GHG) emissions and energy security will be implemented with RunGTAP for the period 2007 – 2026. Model closures will be specified with relevant shocks for the exogenous variables to be determined. Sequel to the foregoing, domestic promotion of renewable energy use in place of fossil-fuel will not only reduce gasoline imports and mitigate GHG emissions but also, create green jobs.

Keywords: Biofuel promotion; Recursive-Dynamic GTAP Model; energy security; GHG emissions; Nigeria.

Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Version: 1
Created: Falobi, E. (4/15/2022)
Updated: Falobi, E. (6/9/2022)
Visits: 407
- Dynamic modeling
- Renewable energy
- GTAP Data Base and extensions
- Domestic policy analysis
- Africa (West)

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