Publication:
Should Zambia Produce Biodiesel from Soybeans? Some Insights from an Empirical Analysis

dc.contributor.author de Gorter, Harry
dc.contributor.author Drabik, Dusan
dc.contributor.author Timilsina, Govinda R.
dc.date.accessioned 2013-09-26T15:42:54Z
dc.date.available 2013-09-26T15:42:54Z
dc.date.issued 2013-06
dc.description.abstract Facing a huge fiscal burden due to imports of entire petroleum despite the availability of a surplus of agricultural land to produce biofuels, Zambia, a country in Sub-Saharan Africa, has recently introduced a biofuel mandate. But, 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 through soybean feedstock. The study finds that meeting the biodiesel mandate with biodiesel from soybeans would reduce social welfare because the country's soybean imports would cost more than the expected reduction in petroleum imports. However, if Zambia increases its domestic soybean supply along with its capacity to convert soybean to biodiesel, as well as oil yield, soybean based biodiesel is likely to be welfare-beneficial, even if biodiesel prices are above diesel prices. The study also finds that under current market prices and transportation costs and constraints, the same amount of biodiesel can be produced most cost-effectively with a tax exemption. A blend mandate would be less cost effective, while a biodiesel production subsidy represents the least efficient policy option. en
dc.identifier http://documents.worldbank.org/curated/en/2013/06/17913854/zambia-produce-biodiesel-soybeans-some-insights-empirical-analysis
dc.identifier.uri http://hdl.handle.net/10986/15857
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 6498
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject AGRICULTURE
dc.subject AIR POLLUTION
dc.subject AVAILABILITY
dc.subject BALANCE
dc.subject BIODIESEL
dc.subject BIOFUEL
dc.subject BIOFUELS
dc.subject BIOFUELS INDUSTRY
dc.subject CARBON OFFSETS
dc.subject CHARCOAL
dc.subject CLIMATIC CONDITIONS
dc.subject COMMODITIES
dc.subject COMMODITY
dc.subject COMMODITY PRICES
dc.subject CONSUMER FUEL
dc.subject CONSUMER PRICE
dc.subject CONSUMER SURPLUS
dc.subject CONSUMERS
dc.subject CROP
dc.subject DEFORESTATION
dc.subject DEMAND ELASTICITY
dc.subject DEMAND FOR GASOLINE
dc.subject DEVELOPING COUNTRIES
dc.subject DEVELOPING COUNTRY
dc.subject DEVELOPMENT AGENCY
dc.subject DEVELOPMENT POLICY
dc.subject DIESEL
dc.subject DIESEL CONSUMPTION
dc.subject DIESEL FUEL
dc.subject DIESEL FUEL CONSUMPTION
dc.subject DOMESTIC MARKET
dc.subject DOMESTIC PRICE
dc.subject DOMESTIC PRICES
dc.subject ENERGY DEMAND
dc.subject ENERGY ECONOMICS
dc.subject ENERGY NEEDS
dc.subject ENERGY POLICIES
dc.subject ENERGY SECTOR
dc.subject ENVIRONMENTAL PROTECTION
dc.subject ETHANOL
dc.subject EXPENDITURES
dc.subject EXTERNALITIES
dc.subject FEEDSTOCK
dc.subject FEEDSTOCKS
dc.subject FINANCIAL SUPPORT
dc.subject FIXED SHARE
dc.subject FOREIGN EXCHANGE
dc.subject FOSSIL
dc.subject FUEL
dc.subject FUEL CONSUMPTION
dc.subject FUEL COST
dc.subject FUEL DEMAND
dc.subject FUEL MARKET
dc.subject FUEL PRICE
dc.subject FUEL PUMP
dc.subject FUEL TAX
dc.subject FUEL WOOD
dc.subject GOVERNMENT INTERVENTION
dc.subject GRAIN PRICES
dc.subject HYDROPOWER
dc.subject IMPORTS OF PETROLEUM
dc.subject INTERNATIONAL MARKETS
dc.subject JATROPHA
dc.subject MARGINAL REVENUE
dc.subject MARKET CONDITIONS
dc.subject MARKET DEMAND
dc.subject MARKET DEVELOPMENT
dc.subject MARKET EQUILIBRIUM
dc.subject MARKET PRICE
dc.subject MARKET PRICES
dc.subject MARKETING
dc.subject NATIONAL ENERGY POLICY
dc.subject NET EXPORTS
dc.subject OIL
dc.subject OIL EXPORTS
dc.subject OIL EXTRACTION
dc.subject OIL IMPORTS
dc.subject OIL PRICE
dc.subject OIL PRICES
dc.subject OIL PRODUCTION
dc.subject OIL YIELD
dc.subject OPEN ECONOMY
dc.subject OPPORTUNITY COST
dc.subject OPPORTUNITY COSTS
dc.subject PETROLEUM
dc.subject PETROLEUM DEMAND
dc.subject PETROLEUM IMPORTS
dc.subject PETROLEUM PRODUCTS
dc.subject POSITIVE EFFECTS
dc.subject PRICE DECREASES
dc.subject PRICE ELASTICITY
dc.subject PRICES OF FUELS
dc.subject PRODUCTION COSTS
dc.subject PURCHASING
dc.subject RETAIL
dc.subject RETAIL PRICE
dc.subject SMALL COUNTRY
dc.subject SOYBEAN MEAL
dc.subject SOYBEAN OIL
dc.subject SOYBEAN PRODUCERS
dc.subject SOYBEAN PRODUCTION
dc.subject SOYBEANS
dc.subject SUBSTITUTION
dc.subject SUGAR
dc.subject SUGARCANE
dc.subject SUPPLIERS
dc.subject SUPPLY CURVE
dc.subject SUPPLY CURVES
dc.subject SUPPLY ELASTICITY
dc.subject SURPLUS
dc.subject TAX CREDIT
dc.subject TAX EXEMPTION
dc.subject TAX REVENUE
dc.subject TAX REVENUES
dc.subject TAXATION
dc.subject TRADE BALANCE
dc.subject TRADE BARRIERS
dc.subject WELFARE ECONOMICS
dc.subject WORLD MARKET
dc.subject WORLD MARKETS
dc.title Should Zambia Produce Biodiesel from Soybeans? Some Insights from an Empirical Analysis en
dspace.entity.type Publication
okr.date.disclosure 2013-06-07
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2013/06/17913854/zambia-produce-biodiesel-soybeans-some-insights-empirical-analysis
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness
okr.globalpractice Energy and Extractives
okr.identifier.doi 10.1596/1813-9450-6498
okr.identifier.externaldocumentum 000158349_20130624155223
okr.identifier.internaldocumentum 17913854
okr.identifier.report WPS6498
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/06/24/000158349_20130624155223/Rendered/PDF/WPS6498.pdf en
okr.region.administrative Africa
okr.region.country Zambia
okr.sector Agriculture, fishing, and forestry :: Crops
okr.sector Energy and mining :: Renewable energy
okr.theme Rural development :: Other rural development
okr.theme Environment and natural resources management :: Climate change
okr.topic Energy :: Renewable Energy
okr.topic Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic Private Sector Development :: Emerging Markets
okr.topic Economic Theory and Research
okr.topic Energy :: Energy Production and Transportation
okr.unit Environment and Energy Team, Development Research Group
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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