Regional Economic Models

The impact of expanding biomass webs on the economies of the study countries

Problem statement:

A strong growth in overall biomass demand will provide incentives to African farmers and crop processors to produce more non-food biomass commodities by reallocating productive resources or employing resources that before had been underutilized. Particularly in the latter case, increased biomass production could contribute to overall economic growth, the extent and composition of which, however, is uncertain.

Objective:

Analyze and enumerate the various impacts that an expansion of biomass production, triggered by increasing international demand could have on the economies of the study countries.

Research questions:

  1. How will growth in biomass production contribute to the growth of the entire economy?
  2. How could the emergence/implementation of defined technology packages related to biomass webs change the food balances of the case study regions?
  3. Where does food production compete with non-food, and which complementarities and synergies could be exploited?
  4. How will aggregate availability of and access to food by poor consumers be affected?
  5. Which macroeconomic effects can be expected from an agricultural expansion into biomass webs, particularly on aggregate demand, the balance of payments, and economic growth?

Methodology:

Simulation of scenarios of biomass expansion using coupled partial- and general equilibrium models

Countries of field research:

  • Ethiopia
  • Ghana

Involved partners:

  • ILR, University of Bonn
  • EEPRI Addis Ababa
  • IFPRI Ethiopia

Investigators:

  • Dr. Arnim Kuhn
    Senior Researcher
    University of Bonn
    Institute for Food and Resource Economics (ILR)
    Nußallee 21
    53115 Bonn, Germany
    Email: arnim.kuhn@ilr.uni-bonn.de
  • Dr. Seid Nuru
    EEPRI Addis Ababa
  • Kassahun Aberra Endeshaw
    Junior Researcher
    Institute for Food and Resource Economics