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Are biofuels economically competitive with their petroleum counterparts production cost analysis for Zambia (Inglês)

With increased global interest in biofuels, Zambia, a Sub-Saharan African country that entirely depends on imports for its petroleum supply, is planning to implement blending mandates for biofuels. But, a large number of issues -- including production costs of biofuels, land requirements to meet the mandates, and environmental benefits -- have not yet been explored. This study aims to contribute in filling this gap. It finds that depending on feedstock type, costs of ethanol production range from US$0.360 a liter to US$0.680 a liter while the costs for biodiesel production range from US$0.612 a liter to US$0.952 a liter. Even if lower energy contents of biofuels are taken into account, the analysis shows that biofuels are cheaper than their petroleum counterparts. Considering the cost advantage of these biofuels over petroleum products and the availability of surplus agricultural land, Zambia is likely to benefit from the development of a biofuel industry. Biofuels is expected to reduce Zambia's petroleum import bill, which currently stands at more than US$700 million, enhance food security by providing incentives to increase yields, and increase affordability and accessibility to modern energy in the country where 77 percent of the population still lacks access to modern energy. It could also stimulate rural employment and development.

Detalhes

  • Autor

    Sinkala, Thomson Timilsina, Govinda R. Ekanayake, Indira J.

  • Data do documento

    2013/06/01

  • TIpo de documento

    Documento de trabalho sobre pesquisa de políticas

  • No. do relatório

    WPS6499

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Zâmbia,

  • Região

    África,

  • Data de divulgação

    2013/06/01

  • Disclosure Status

    Disclosed

  • Nome do documento

    Are biofuels economically competitive with their petroleum counterparts ?production cost analysis for Zambia

  • Palavras-chave

    Biofuels;united nations framework convention on climate change;Biodiesel;Environment & Energy;sweet sorghum;cost of ethanol production;Land and Water Resources;price petroleum product;energy and water;wholesale price of gasoline;retail price of gasoline;biofuel industry;cost of finance;production cost;cost of production;development research group;volume of ethanol;degrees of participation;diversity of products;increase in prices;return on investment;combination of factor;interest due;ethanol production cost;estimation of production;absence of knowledge;amount of water;access to water;market based instrument;Energy and Mining;information on market;waste to energy;security of supply;availability of data;direct tax revenue;rural development policy;department of agriculture;lack of incentive;total variable costs;forms of energy;energy information administration;production cost decrease;small scale farmer;feedstock for ethanol;high yield variety;health and nutrition;repair and maintenance;petroleum product pricing;

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