Biofuels And Rural Poverty

Contributes to the global debate on biofuels, in particular the consequences that large-scale production of transport fuel substitutes can have on rural areas, principally in developing countries and in some poor rural areas of developed countries. This book looks at the production of biofuels from the role of biofuels in reducing rural poverty.

Interest in biofuels began with oil shocks in the 1970’s, but the more rapid development and consumption of biofuel industry in recent years has been primarily driven by mandates, subsidies, climate change concerns, emissions targets and energy security. From 2004 to 2006, fuel ethanol grew by 26% and biodiesel grew by 172%. As biofuel production continues to expand, investments in capacity expansion and research and development have been made. The 2008 food crisis emphasized the need to re-examine biofuel consequences. Biofuels remain an important renewable energy resource to substitute for fossil fuels, particularly in the transportation sector, yet biofuels’ success is still uncertain. The future of biofuels in the energy supply mix relies on mitigating potential and improving the environmental gains. This book brings together leading authorities on biofuel from the World Bank to examine all of the impacts of biofuel (economic, social, environmental) within a unified framework and in a global perspective, making it of interest to academics in agricultural and environmental economics as well as industry and policy-makers.

This paper assesses the implications of large-scale investments in biofuels for growth and income distribution. We find that biofuels investment enhances growth and poverty reduction despite some displacement of food crops by biofuels. Overall, the biofuel investment trajectory analyzed increases Mozambique's annual economic growth by 0.6 percentage points and reduces the incidence of poverty by about 6 percentage points over a 12-year phase-in period. Benefits depend on production technology. An outgrower approach to producing biofuels is more pro-poor, due to the greater use of unskilled labor and accrual of land rents to smallholders, compared with the more capital-intensive plantation approach. Moreover, the benefits of outgrower schemes are enhanced if they result in technology spillovers to other crops. These results should not be taken as a green light for unrestrained biofuels development. Rather, they indicate that a carefully designed and managed biofuels policy holds the potential for substantial gains.

This book provides an overview of current and future bioenergy developments, describes the impacts related to poverty and the environment, assesses the opportunities and challenges and outlines how future World Bank activities related to bioenergy may be linked to poverty alleviation and environmental protection.

Seminar paper from the year 2012 in the subject Ethnology / Cultural Anthropology, grade: 1, University of Luzern (ethnologisches Seminar), course: Land Grabbing, language: English, abstract: The global biofuel production has been rapidly increasing since 2007-08 and with it the new demand for land, which has a strong focus on Africa as it has weak land rights protection. Most foreign investors, who intend to buy land for the biofuel production take advantage of the lack of proper property rights in several African countries. Therefore, many of the rural poor, who depend on land for their living, suffer from expulsion or dispossession. In summary, it can be said that the formalization of land titles only serves the poor, when secondary rights as for example for women, herders or migrants, are respected by the state or the foreign investors when allocating, buying or leasing land. In addition, during the processes of allocating, buying or leasing land, the state as well as the foreign investor should give whole local communities (not only local elites) the possibility to negotiate over the future use of the land they tilled for years. From the four land tenure reforms outlined, where land based wealth and power transfers occurs, the two best possible solutions, which serve the poor, would be the redistribution and the distribution of land. In my opinion, the preferable one of this two solutions is distribution as this solution is less conflict-prone. In the present paper two case studies are used to show how (as in the case of Ghana) local elites or foreign investors make decisions without consulting local communities or, that simply changing laws or introduce policies is not enough to protect the land rights of the affected local communities (as in the case of Mozambique). Even if local communities are compensated for loss of their land rights, many agreements between communities and investors emphasize one-off compensations rather than long-term benefit sharing, such as job creation or leasing incomes and the agreements usually involve very small payments compared to for example the value of the forest concessions acquired by investors.

The last decade has witnessed major crises in both food and energy security across the world. One response to the challenges of climate change and energy supply has been the development of crops to be used for biofuels. But, as this book shows, this can divert agricultural land from food production to energy crops, thus affecting food security, particularly in less developed countries. The author analyses the extent to which biofuels feedstocks fit within the national food security strategy, agro-export orientation, and rural development plans and policies of developing economies. Two case studies, from Tanzania in East Africa and Borneo in Malaysia, are considered in detail, using the non-edible crop of jatropha as an example of how compromises can be reached to balance food and energy goals as well as export markets. The author develops a novel integrated approach, the Institutional Feasibility Study, as the basis of her analysis. She addresses key issues such as: how do global initiatives for green growth, energy security and sustainable development incorporate biofuels industry development? Does global biofuels trade present meaningful foreign and local investment opportunities for developing countries? To what extent does biofuels feedstock production help with poverty reduction and agricultural sector modernization? What role do the EU and the US commitments to biofuels blending targets play in the rapid industry development in developing countries? How does the biofuels industry fit within existing formal and informal institutional frameworks? Who are the winners and losers in the biofuels global value chain?