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Biodiesel value chain and access to energy in Ethiopia: Policies and business prospects

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  • Negash, Martha
  • Riera, Olivia
Abstract
Similar to many net oil importing Sub-Sahara African countries, Ethiopia’s economy is rural and as it stands today it is far from being a fossil fuel based economy. Instead, the economy is largely powered by traditional burning of solid biomass. Despite its small share in the overall energy supply (7%), imported fuel absorbs half of Ethiopia’s foreign currency earnings. The common justifications behind the development of biofuels such as energy source diversification, foreign currency saving, rural poverty alleviation through employment and technology transfers were all appealing for Ethiopian policy advisers. In 2007, mostly influenced by the global discourse, Ethiopia launched a biofuel expansion strategy and a massive ad hoc investment promotion of two biodiesel crops: castor and jatropha. In this paper, we synthesize the various biodiesel development initiatives and modes of production, and point out at the gaps in policy formulation and project implementation. Evaluating the prospect and constraints for biodiesel production in Ethiopia, we conclude that most of the prerequisites for a viable biodiesel industry still need to be met. We identify key areas and priorities to further strengthen the development of the biodiesel sector.

Suggested Citation

  • Negash, Martha & Riera, Olivia, 2014. "Biodiesel value chain and access to energy in Ethiopia: Policies and business prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 975-985.
    • Handle: RePEc:eee:rensus:v:39:y:2014:i:c:p:975-985
    DOI: 10.1016/j.rser.2014.07.152
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    Cited by:

    1. Gabisa, Elias W. & Gheewala, Shabbir H., 2020. "Can substitution of imported gasoline by locally produced molasses ethanol in Ethiopia be sustainable? An eco-efficiency assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    2. repec:lic:licosd:35614 is not listed on IDEAS
    3. Girum Ayalneh Tiruye & Abreham Tesfaye Besha & Yedilfana Setarge Mekonnen & Natei Ermias Benti & Gebrehiwet Abrham Gebreslase & Ramato Ashu Tufa, 2021. "Opportunities and Challenges of Renewable Energy Production in Ethiopia," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    4. Kuno, Amanuel Kachiko & Begna, Nafbek & Mebratu, Fisaha, 2023. "A feasibility analysis of PV-based off-grid rural electrification for a pastoral settlement in Ethiopia," Energy, Elsevier, vol. 282(C).
    5. Berhanu, Mesfin & Jabasingh, S. Anuradha & Kifile, Zebene, 2017. "Expanding sustenance in Ethiopia based on renewable energy resources – A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1035-1045.
    6. Riera, Olivia & Swinnen, Jo, 2015. "Household level spillover effects from biofuels: Evidence from Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212291, International Association of Agricultural Economists.
    7. Riera, Olivia & Swinnen, Johan, 2016. "Household level spillover effects from biofuels: Evidence from castor in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 55-65.
    8. Ewunie, Gebresilassie Asnake & Morken, John & Lekang, Odd Ivar & Yigezu, Zerihun Demrew, 2021. "Factors affecting the potential of Jatropha curcas for sustainable biodiesel production: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).

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    Keywords

    Biodiesel; Policy; Ethiopia; Energy;
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