EconPapers    
Economics at your fingertips  
 

Producing biodiesel from soybeans in Zambia: An economic analysis

Dusan Drabik (), Harry de Gorter () and Govinda R. Timilsina

Food Policy, 2016, vol. 59, issue C, 103-109

Abstract: Facing a huge fiscal burden due to imports of its entire petroleum demand in the face of ample supply of agricultural land to produce biofuels, Zambia has recently introduced a biofuel mandate. However, a number of questions, particularly those related to the economics of biofuels, have not been fully investigated yet. Using an empirical model, this study analyzes the economics of meeting the biodiesel mandate using soybean oil. The study finds that meeting the biodiesel mandate would reduce social welfare, mainly because of the welfare loss to fuel consumers and net reduction in foreign exchange earnings due to soybean oil imports. However, if Zambia increases its domestic soybean supply, as well as oil yield, soybean-based biodiesel is likely to be welfare-beneficial. The country’s welfare is found to be the highest under expanded soybean production and its domestic processing but with no biodiesel mandate.

Keywords: Zambia; Biofuels; Biodiesel; Soybean; Biofuel policy; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306919216000087
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:59:y:2016:i:c:p:103-109

DOI: 10.1016/j.foodpol.2016.01.001

Access Statistics for this article

Food Policy is currently edited by J. Kydd

More articles in Food Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-06-15
Handle: RePEc:eee:jfpoli:v:59:y:2016:i:c:p:103-109