Macroeconomic and Distributional Impacts of Jatropha-based Biodiesel in Mali

Mali, a landlocked West African nation at the southern edge of the Sahara Desert, has introduced a program to produce biodiesel using jatropha curcas, a non-edible shrub widely available throughout the country by farmers for generations as a living fence for their gardens. The aim of the program is to partially substitute diesel, which is entirely supplied through imports, with domestic biodiesel produced from a feedstock that does not have any commercial value otherwise and thus has zero opportunity cost. This paper uses a computable general equilibrium model to investigate economy-wide and distributional impacts of large-scale jatropha production on different types of lands, and conversion of jatropha oil to biodiesel for domestic consumption. It assesses impacts on agricultural and other commodity markets, resource and factor markets, and international trade. The results are fed into a detailed household survey-based micro-simulation model to assess impacts on poverty and income distribution. The study finds that the expansion of jatropha farming would be beneficial in terms of both macroeconomic and distributional impacts as long as idle lands, which have been neither used for agriculture nor protected as forests, are utilized. However, if jatropha plantation is carried out on existing agriculture lands, the economy-wide impacts would be negative although it would still help reduce rural poverty.

Bibliographic Details

Main Authors:	Boccanfuso, Dorothee, Coulibaly, Massa, Timilsina, Govinda R., Savard, Luc
Language:	English en_US
Published:	World Bank, Washington, DC 2013-06
Subjects:	ACCESS TO ELECTRICITY, ACCOUNTING, ADVERSE IMPACTS, AGRICULTURAL LAND, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL WASTES, AGRICULTURE, AIR POLLUTION, ALTERNATIVE ENERGY, ALTERNATIVE ENERGY SOURCES, BIO-DIESEL, BIODIESEL, BIOENERGY, BIOFUEL, BIOFUEL INDUSTRY, BIOFUEL PRODUCTION, BIOFUELS, BIOFUELS INDUSTRY, BIOFUELS SECTOR, BIOMASS, BUDGETARY ASSISTANCE, CHARCOAL, COMMERCE, COMMERCIAL CROPS, COMMERCIAL VALUE, COMPARATIVE ADVANTAGE, COMPARATIVE ANALYSIS, CONSUMERS, CORN, CROWDING OUT, DEMAND FUNCTIONS, DEVELOPMENT POLICY, DIESEL FUELS, DISPOSABLE INCOME, DISTRIBUTIONAL EFFECTS, DOMESTIC MARKET, ECONOMIC BENEFITS, ECONOMIC INEQUALITY, ECONOMIC RELATIONS, ECONOMICS, ELASTICITY, ELASTICITY OF SUBSTITUTION, ELECTRICITY GENERATION, ELECTRICITY PRODUCTION, ENDOGENOUS VARIABLES, ENERGY CONSUMPTION, ENERGY PRODUCTION, ENERGY SECTOR, ENERGY SECTORS, ENERGY TECHNOLOGY, EQUILIBRIUM, ETHANOL, EXPENDITURE, EXPENDITURES, EXPORT MARKETS, EXPORTS, FACTOR MARKETS, FACTOR PRICE, FARM HOUSEHOLDS, FARMERS, FOOD COMMODITIES, FOOD CROP, FOOD CROPS, FOOD POLICY, FOOD PRICES, FOOD PRODUCTS, FOOD SECURITY, FOOD STAPLES, FOOD SUPPLY, FOSSIL FUEL, FOSSIL FUELS, FUEL, FUEL PRICES, FUEL TAX, GDP, GDP DEFLATOR, GENERAL EQUILIBRIUM, GOVERNMENT SUBSIDIES, GOVERNMENT SUBSIDY, GREEN ENERGY, GREENHOUSE GASES, GROSS DOMESTIC PRODUCT, GROWTH RATE, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, INCOME, INCOME DISTRIBUTION, INCOME INEQUALITY, INCOME TAXES, INCOME TRANSFERS, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, JATROPHA, LABOR DEMAND, LABOR MARKET, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR SUPPLY, LABOUR, LABOUR MARKETS, LABOUR SUPPLY, LAND AVAILABILITY, LAND SUPPLY, MACROECONOMIC POLICIES, MAIZE, MARGINAL PROPENSITY TO SAVE, MARKET PENETRATION, MARKET PRICE, MARKET PRICES, MARKET SEGMENTATION, MARKET SHARE, MARKET STUDY, NATIONAL ENERGY POLICY, NATIONAL POVERTY, NOMINAL INCOME, OPEN ECONOMY, OPPORTUNITY COST, OUTPUTS, POOR, POOR COUNTRIES, POOR HOUSEHOLDS, POOR POLICY, POSITIVE EFFECTS, POVERTY ANALYSIS, POVERTY COMPARISONS, POVERTY INDICES, POVERTY LINE, POVERTY LINES, POVERTY MEASURES, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, POVERTY REDUCTION STRATEGY PAPER, POVERTY THRESHOLD, PRICE CHANGES, PRICE DECREASES, PRICE EFFECT, PRICE INCREASES, PRICE INDEX, PRODUCER PRICE, PRODUCTION COSTS, PRODUCTION FUNCTION, PRODUCTION PROCESS, PRODUCTIVITY, REAL INCOME, RENEWABLE ENERGIES, RENEWABLE ENERGY, RURAL, RURAL AREA, RURAL AREAS, RURAL DEVELOPMENT, RURAL HOUSEHOLDS, RURAL LABOR, RURAL POVERTY, RURAL SETTINGS, SALE, SALES, SAVINGS, SOIL EROSION, SOLAR ENERGY, SOYA, SUBSTITUTE, SUPPLY INCREASES, TARGETING, TRADE LIBERALIZATION, UNEMPLOYMENT, UNSKILLED LABOR, URBAN HOUSEHOLDS, UTILITY FUNCTION, UTILITY MAXIMIZATION, VALUE ADDED, VEGETABLE OIL, WAGE RATES, WAGES, WIND ENERGY, WOOD, WORLD TRADE ORGANIZATION, WTO, computable general equilibrium model, micro-simulation, distributional analysis,
Online Access:	http://documents.worldbank.org/curated/en/2013/06/17914172/macroeconomic-distributional-impacts-jatropha-based-biodiesel-mali https://hdl.handle.net/10986/15859
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