An economic analysis of small-scale biodiesel production in Sierra Leone

Sierra Leone;palm oil;microeconomic analysis

Griswold, Yvonne R. ; Bullock ; David S.

关键词: Sierra Leone;    palm oil;    microeconomic analysis;   

Others  :  https://www.ideals.illinois.edu/bitstream/handle/2142/16171/Griswold_YvonneR.pdf?sequence=2&isAllowed=y

美国|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

The International Energy Agency states that the world will need at last 50 percentmore energy by 2020 (Thongbai et. al. 2006). This problem is especially acute in Sub-Saharan Africa. This region faces especially great food vs. fuel tradeoffs. Discerningwhether land would be better used for continual land production to meet foodconsumption for a society needs or whether bioenergy production has the potential toincrease foreign exchange in hopes of increasing food security are very importantquestions to consider. Arnt et al. conducted an economic analysis using a ComputableGeneral Equilibrium Model of biofuels in Mozambique. They find that biofuelsproduction can enhance economic growth and reduce poverty. They conclude that over a12-year horizon, approximately 36,000 and 55,000 manufacturing jobs can be created inthe ethanol and biodiesel sectors, respectively.Using this article as a template for issues that Sierra Leone faces also, I use aPartial Budget Analysis (PBA) and Microeconomic Analysis (MEA) to determine aneconomic analysis for biodiesel production from palm kernel and fruit oil. I focus onhow potential biodiesel production from palm fruit oil could affect food security andpoverty in the country. I find that the feasibility and profitability of small-scale biodieselproduction is sensitive to wage rates and input prices. Biodiesel produced from palmkernel oil can be profitable given the correct circumstances. I also find that opportunitycost of diverting palm fruit oil away from food to biodiesel is quiet high and seeminglyunprofitable in most cases.