Economic and Distributional Impacts of Biofuels in Mali

Dorothee Boccanfuso (), Massa Coulibaly (), Govinda R. Timilsina () and Luc Savard ()
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Massa Coulibaly: GREAT -- Groupe de recherche en économie appliquée et théorique

Cahiers de recherche from Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke

Abstract: A biofuels race has been observed around the world with rising cost of oil and the increasing concerns over climate change. Unfortunately, this growth is associated with rising food prices, which is a major concern in developing countries like Mali. The development of biofuels in Mali should contribute to reducing dependency on imported fossil fuels and avoiding competing for land used for food production. This study carries out an economic and distributional impact analysis with a microsimulation and CGE model of the prospects of large-scale expansion jatropha to produce biofuels in Mali. We also investigate the impacts of promoting biofuels through a tax-subsidy scheme. Our results reveal that macro effects are slightly negative or weakly positive but generate reductions in poverty at the national level and for rural households. The pro-poor analysis does not reveal a clear trend with proportional, progressive and regressive outcomes.

Keywords: Biofuels; agriculture; computable general equilibrium model; micro-simulation; distributional analysis. (search for similar items in EconPapers)
JEL-codes: D58 D31 I32 Q17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-agr, nep-cmp, nep-ene and nep-env
Date: 2011-05, Revised 2011-05
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Persistent link: http://EconPapers.repec.org/RePEc:shr:wpaper:11-08

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