{"title":"The economywide impact of bioethanol production in South Africa","authors":"Lungani Mvelase, Stuart Ferrer","doi":"10.1016/j.ecmx.2024.100729","DOIUrl":null,"url":null,"abstract":"<div><div>Bioethanol production as a substitute for petroleum in road transport fuels has been identified as a potential partial solution to environmental and socioeconomic challenges facing developing countries, including South Africa. Biofuels in motor vehicles emit fewer GHGs relative to conventional fuels, and their production can lead to economic growth and associated socioeconomic outcomes, including increased labour employment and improved household welfare. The objective of this paper was to quantify the socioeconomic impact of bioethanol production in South Africa using sugarcane as a feedstock and to assess the effects of increasing the size of the bioethanol plant. The study is based on the 2018 KwaZulu-Natal and South African Social Accounting Matrices (SAM), and two assumed scenarios are considered, namely a scenario where only export destined sugarcane is used to produce bioethanol (scenario I) and a scenario when all sugarcane is used to produce bioethanol (Scenario II). The SAMs modified from the SAMs initially compiled by Conningarth Economists were used to develop an input–output multipliers economic impact model. The production of bioethanol from sugarcane was anticipated to have positive socioeconomic impacts namely, an increase in the country’s GDP, employment growth, gross-capital formation, positive contribution to fiscus, improvement in household welfare and positive contribution to the balance of payment (BOP). Expanding the size of the bioethanol plant is expected to magnify the impacts. The study, therefore, recommends a removal of bottlenecks in bioethanol expansion, including high feedstock cost, limited investment, and absence of mandatory blending policy, amongst others.</div></div>","PeriodicalId":37131,"journal":{"name":"Energy Conversion and Management-X","volume":"24 ","pages":"Article 100729"},"PeriodicalIF":7.1000,"publicationDate":"2024-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Conversion and Management-X","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2590174524002071","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
Bioethanol production as a substitute for petroleum in road transport fuels has been identified as a potential partial solution to environmental and socioeconomic challenges facing developing countries, including South Africa. Biofuels in motor vehicles emit fewer GHGs relative to conventional fuels, and their production can lead to economic growth and associated socioeconomic outcomes, including increased labour employment and improved household welfare. The objective of this paper was to quantify the socioeconomic impact of bioethanol production in South Africa using sugarcane as a feedstock and to assess the effects of increasing the size of the bioethanol plant. The study is based on the 2018 KwaZulu-Natal and South African Social Accounting Matrices (SAM), and two assumed scenarios are considered, namely a scenario where only export destined sugarcane is used to produce bioethanol (scenario I) and a scenario when all sugarcane is used to produce bioethanol (Scenario II). The SAMs modified from the SAMs initially compiled by Conningarth Economists were used to develop an input–output multipliers economic impact model. The production of bioethanol from sugarcane was anticipated to have positive socioeconomic impacts namely, an increase in the country’s GDP, employment growth, gross-capital formation, positive contribution to fiscus, improvement in household welfare and positive contribution to the balance of payment (BOP). Expanding the size of the bioethanol plant is expected to magnify the impacts. The study, therefore, recommends a removal of bottlenecks in bioethanol expansion, including high feedstock cost, limited investment, and absence of mandatory blending policy, amongst others.
期刊介绍:
Energy Conversion and Management: X is the open access extension of the reputable journal Energy Conversion and Management, serving as a platform for interdisciplinary research on a wide array of critical energy subjects. The journal is dedicated to publishing original contributions and in-depth technical review articles that present groundbreaking research on topics spanning energy generation, utilization, conversion, storage, transmission, conservation, management, and sustainability.
The scope of Energy Conversion and Management: X encompasses various forms of energy, including mechanical, thermal, nuclear, chemical, electromagnetic, magnetic, and electric energy. It addresses all known energy resources, highlighting both conventional sources like fossil fuels and nuclear power, as well as renewable resources such as solar, biomass, hydro, wind, geothermal, and ocean energy.