Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature

Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature While the production of biofuels has expanded in recent years, findings in the literature on its impact on economic growth and development remain contradictory. This paper presents a meta-analysis of computable general equilibrium (CGE) studies published between 2006 and 2017 on the effect of biofuel production on economic development worldwide. Using 30 CGE studies, we found that biofuel-supportive policies generated significant impacts on GDP and household incomes. CGE studies included in our database reported an average 0.25 percentage point increase in GDP and a 0.49 percentage point increase in household incomes. We also found that results were driven by several key features of the CGE studies included in our database. We investigated features such as biofuel type, geographic area, and characteristics of the CGE models employed. We found that biofuel expansion has heterogeneous effects in developed versus emerging countries. Simulations on longer time periods and in multi-country studies led to results that indicate higher impacts of biofuel expansion on GDP growth and household incomes. Moreover, simulations with an increase in agricultural productivity indicate positive welfare impact gains, unlike simulations with land expansion. Lastly, we found that biodiesel development leads to higher welfare impact gains than that of bioethanol. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Ecological Economics Elsevier

Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature

Loading next page...
 
/lp/elsevier/income-generating-effects-of-biofuel-policies-a-meta-analysis-of-the-hOvqa35m0J
Publisher
Elsevier
Copyright
Copyright © 2018 Elsevier B.V.
ISSN
0921-8009
D.O.I.
10.1016/j.ecolecon.2018.01.025
Publisher site
See Article on Publisher Site

Abstract

While the production of biofuels has expanded in recent years, findings in the literature on its impact on economic growth and development remain contradictory. This paper presents a meta-analysis of computable general equilibrium (CGE) studies published between 2006 and 2017 on the effect of biofuel production on economic development worldwide. Using 30 CGE studies, we found that biofuel-supportive policies generated significant impacts on GDP and household incomes. CGE studies included in our database reported an average 0.25 percentage point increase in GDP and a 0.49 percentage point increase in household incomes. We also found that results were driven by several key features of the CGE studies included in our database. We investigated features such as biofuel type, geographic area, and characteristics of the CGE models employed. We found that biofuel expansion has heterogeneous effects in developed versus emerging countries. Simulations on longer time periods and in multi-country studies led to results that indicate higher impacts of biofuel expansion on GDP growth and household incomes. Moreover, simulations with an increase in agricultural productivity indicate positive welfare impact gains, unlike simulations with land expansion. Lastly, we found that biodiesel development leads to higher welfare impact gains than that of bioethanol.

Journal

Ecological EconomicsElsevier

Published: May 1, 2018

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off