Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution

This paper analyzes the impact of large-scale expansion of biofuels on the global income distribution and poverty. A global computable general equilibrium model is used to simulate the effects of the expansion of biofuels on resource allocation, commodity prices, factor prices and household income....

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Main Authors:	Cororaton, Caesar B., Timilsina, Govinda R.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADVERSE IMPACT AGRICULTURAL COMMODITIES AGRICULTURAL POLICY AGRICULTURAL PRICES AGRICULTURE BASE YEAR BILATERAL TRADE CLIMATE CHANGE CONSUMER GOODS CONSUMER PRICE INDEX CONSUMER PRICES CORN COUNTERFACTUAL CRISES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTIONAL EFFECTS ECOLOGICAL ZONES ECONOMIC GROWTH ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS FARMER FARMERS FOOD CROPS FOOD DEMAND FOOD EXPENDITURE FOOD INSECURITY FOOD POLICY FOOD POLICY RESEARCH FOOD PRICE FOOD PRICE INFLATION FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOOD SHARE FOOD SUPPLY FREE TRADE FRUITS GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GINI COEFFICIENT GLOBAL POVERTY GOVERNMENT EXPENDITURES GRAINS GROSS DOMESTIC PRODUCT GROWTH PROJECTIONS HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IFPRI INCOME INCOME DISTRIBUTION INCOME INEQUALITY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE INVENTORY LABOR MOVEMENT LABOR SUPPLY LAND SUPPLY LIVING STANDARDS MACROECONOMIC MODELS MULTIPLIERS NATIONAL INCOME OPTIMIZATION PADDY PER CAPITA CONSUMPTION PETROLEUM PRODUCTS POOR POOR PEOPLE POVERTY ANALYSIS POVERTY ESTIMATES POVERTY INCIDENCE POVERTY LINE POVERTY LINES POVERTY RATES POVERTY REDUCTION POVERTY THRESHOLD PRICE INDEXES PROCESSED FOODS PRODUCT DIFFERENTIATION PURCHASING POWER REAL GDP REDUCTION IN POVERTY REGIONAL LEVEL REGIONAL POVERTY RENTS RESOURCE ALLOCATION RURAL RURAL AREAS RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL LABOR RURAL SECTOR SAVINGS SOCIAL COSTS SUGAR SUGAR BEET SUGAR CANE SUGARCANE SUPPLY CURVE UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VEGETABLES WAGE PREMIUM WAGES WHEAT
Online Access:	http://documents.worldbank.org/curated/en/2012/06/16338949/impacts-large-scale-expansion-biofuels-global-poverty-income-distribution http://hdl.handle.net/10986/9331

id	okr-10986-9331
recordtype	oai_dc
spelling	okr-10986-93312021-04-23T14:02:45Z Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution Cororaton, Caesar B. Timilsina, Govinda R. ADVERSE IMPACT AGRICULTURAL COMMODITIES AGRICULTURAL POLICY AGRICULTURAL PRICES AGRICULTURE BASE YEAR BILATERAL TRADE CLIMATE CHANGE CONSUMER GOODS CONSUMER PRICE INDEX CONSUMER PRICES CORN COUNTERFACTUAL CRISES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTIONAL EFFECTS ECOLOGICAL ZONES ECONOMIC GROWTH ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS FARMER FARMERS FOOD CROPS FOOD DEMAND FOOD EXPENDITURE FOOD INSECURITY FOOD POLICY FOOD POLICY RESEARCH FOOD PRICE FOOD PRICE INFLATION FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOOD SHARE FOOD SUPPLY FREE TRADE FRUITS GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GINI COEFFICIENT GLOBAL POVERTY GOVERNMENT EXPENDITURES GRAINS GROSS DOMESTIC PRODUCT GROWTH PROJECTIONS HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IFPRI INCOME INCOME DISTRIBUTION INCOME INEQUALITY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE INVENTORY LABOR MOVEMENT LABOR SUPPLY LAND SUPPLY LIVING STANDARDS MACROECONOMIC MODELS MULTIPLIERS NATIONAL INCOME OPTIMIZATION PADDY PER CAPITA CONSUMPTION PETROLEUM PRODUCTS POOR POOR PEOPLE POVERTY ANALYSIS POVERTY ESTIMATES POVERTY INCIDENCE POVERTY LINE POVERTY LINES POVERTY RATES POVERTY REDUCTION POVERTY THRESHOLD PRICE INDEXES PROCESSED FOODS PRODUCT DIFFERENTIATION PURCHASING POWER REAL GDP REDUCTION IN POVERTY REGIONAL LEVEL REGIONAL POVERTY RENTS RESOURCE ALLOCATION RURAL RURAL AREAS RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL LABOR RURAL SECTOR SAVINGS SOCIAL COSTS SUGAR SUGAR BEET SUGAR CANE SUGARCANE SUPPLY CURVE UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VEGETABLES WAGE PREMIUM WAGES WHEAT This paper analyzes the impact of large-scale expansion of biofuels on the global income distribution and poverty. A global computable general equilibrium model is used to simulate the effects of the expansion of biofuels on resource allocation, commodity prices, factor prices and household income. A second model based on world-wide household surveys uses these results to calculate the impacts on poverty and global income inequality. The study finds that the large-scale expansion of biofuels leads to an increase in production and prices of agricultural commodities. The increased prices would cause higher food prices, especially in developing countries. Moreover, wages of unskilled rural labor would also increase, which slows down the rural to urban migration in many developing countries. The study also shows that the effects on poverty vary across regions; it increases in South Asia and Sub-Saharan Africa, whereas it decreases in Latin America. At the global level, the expansion of biofuels increases poverty slightly. 2012-06-29T20:20:10Z 2012-06-29T20:20:10Z 2012-06 http://documents.worldbank.org/curated/en/2012/06/16338949/impacts-large-scale-expansion-biofuels-global-poverty-income-distribution http://hdl.handle.net/10986/9331 English Policy Research Working Paper; No. 6077 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ADVERSE IMPACT AGRICULTURAL COMMODITIES AGRICULTURAL POLICY AGRICULTURAL PRICES AGRICULTURE BASE YEAR BILATERAL TRADE CLIMATE CHANGE CONSUMER GOODS CONSUMER PRICE INDEX CONSUMER PRICES CORN COUNTERFACTUAL CRISES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTIONAL EFFECTS ECOLOGICAL ZONES ECONOMIC GROWTH ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS FARMER FARMERS FOOD CROPS FOOD DEMAND FOOD EXPENDITURE FOOD INSECURITY FOOD POLICY FOOD POLICY RESEARCH FOOD PRICE FOOD PRICE INFLATION FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOOD SHARE FOOD SUPPLY FREE TRADE FRUITS GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GINI COEFFICIENT GLOBAL POVERTY GOVERNMENT EXPENDITURES GRAINS GROSS DOMESTIC PRODUCT GROWTH PROJECTIONS HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IFPRI INCOME INCOME DISTRIBUTION INCOME INEQUALITY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE INVENTORY LABOR MOVEMENT LABOR SUPPLY LAND SUPPLY LIVING STANDARDS MACROECONOMIC MODELS MULTIPLIERS NATIONAL INCOME OPTIMIZATION PADDY PER CAPITA CONSUMPTION PETROLEUM PRODUCTS POOR POOR PEOPLE POVERTY ANALYSIS POVERTY ESTIMATES POVERTY INCIDENCE POVERTY LINE POVERTY LINES POVERTY RATES POVERTY REDUCTION POVERTY THRESHOLD PRICE INDEXES PROCESSED FOODS PRODUCT DIFFERENTIATION PURCHASING POWER REAL GDP REDUCTION IN POVERTY REGIONAL LEVEL REGIONAL POVERTY RENTS RESOURCE ALLOCATION RURAL RURAL AREAS RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL LABOR RURAL SECTOR SAVINGS SOCIAL COSTS SUGAR SUGAR BEET SUGAR CANE SUGARCANE SUPPLY CURVE UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VEGETABLES WAGE PREMIUM WAGES WHEAT
spellingShingle	ADVERSE IMPACT AGRICULTURAL COMMODITIES AGRICULTURAL POLICY AGRICULTURAL PRICES AGRICULTURE BASE YEAR BILATERAL TRADE CLIMATE CHANGE CONSUMER GOODS CONSUMER PRICE INDEX CONSUMER PRICES CORN COUNTERFACTUAL CRISES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTIONAL EFFECTS ECOLOGICAL ZONES ECONOMIC GROWTH ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS FARMER FARMERS FOOD CROPS FOOD DEMAND FOOD EXPENDITURE FOOD INSECURITY FOOD POLICY FOOD POLICY RESEARCH FOOD PRICE FOOD PRICE INFLATION FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOOD SHARE FOOD SUPPLY FREE TRADE FRUITS GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GINI COEFFICIENT GLOBAL POVERTY GOVERNMENT EXPENDITURES GRAINS GROSS DOMESTIC PRODUCT GROWTH PROJECTIONS HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IFPRI INCOME INCOME DISTRIBUTION INCOME INEQUALITY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE INVENTORY LABOR MOVEMENT LABOR SUPPLY LAND SUPPLY LIVING STANDARDS MACROECONOMIC MODELS MULTIPLIERS NATIONAL INCOME OPTIMIZATION PADDY PER CAPITA CONSUMPTION PETROLEUM PRODUCTS POOR POOR PEOPLE POVERTY ANALYSIS POVERTY ESTIMATES POVERTY INCIDENCE POVERTY LINE POVERTY LINES POVERTY RATES POVERTY REDUCTION POVERTY THRESHOLD PRICE INDEXES PROCESSED FOODS PRODUCT DIFFERENTIATION PURCHASING POWER REAL GDP REDUCTION IN POVERTY REGIONAL LEVEL REGIONAL POVERTY RENTS RESOURCE ALLOCATION RURAL RURAL AREAS RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL LABOR RURAL SECTOR SAVINGS SOCIAL COSTS SUGAR SUGAR BEET SUGAR CANE SUGARCANE SUPPLY CURVE UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VALUE ADDED VEGETABLES WAGE PREMIUM WAGES WHEAT Cororaton, Caesar B. Timilsina, Govinda R. Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
relation	Policy Research Working Paper; No. 6077
description	This paper analyzes the impact of large-scale expansion of biofuels on the global income distribution and poverty. A global computable general equilibrium model is used to simulate the effects of the expansion of biofuels on resource allocation, commodity prices, factor prices and household income. A second model based on world-wide household surveys uses these results to calculate the impacts on poverty and global income inequality. The study finds that the large-scale expansion of biofuels leads to an increase in production and prices of agricultural commodities. The increased prices would cause higher food prices, especially in developing countries. Moreover, wages of unskilled rural labor would also increase, which slows down the rural to urban migration in many developing countries. The study also shows that the effects on poverty vary across regions; it increases in South Asia and Sub-Saharan Africa, whereas it decreases in Latin America. At the global level, the expansion of biofuels increases poverty slightly.
format	Publications & Research :: Policy Research Working Paper
author	Cororaton, Caesar B. Timilsina, Govinda R.
author_facet	Cororaton, Caesar B. Timilsina, Govinda R.
author_sort	Cororaton, Caesar B.
title	Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
title_short	Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
title_full	Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
title_fullStr	Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
title_full_unstemmed	Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution
title_sort	impacts of large-scale expansion of biofuels on global poverty and income distribution
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2012/06/16338949/impacts-large-scale-expansion-biofuels-global-poverty-income-distribution http://hdl.handle.net/10986/9331
_version_	1764409162729521152

Impacts of Large-Scale Expansion of Biofuels on Global Poverty and Income Distribution

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