Abstract

German, L., G. C. Schoneveld, and D. Gumbo. 2011. The local social and environmental impacts of smallholder-based biofuel investments in Zambia. Ecology and Society 16(4): 12. https://doi.org/10.5751/ES-04280-160412

Highlights

  • Preoccupation among industrialized countries with security of energy supply and global climate change and developing country interest in improving the balance of trade and capturing value from the global carbon market have placed biofuels firmly on the map of global land use change

  • Unlike business models observed in other African countries (FIAN 2010; Schoneveld et al 2011), large-scale biofuel investments in Zambia have largely focused on smallholder production models, in part to defray the higher than anticipated production costs (German and Schoneveld, in press)

  • We explore the evolution of Zambia's largest jatropha outgrower scheme, with an estimated 25,000 contracted farmers nationwide, and the social and environmental impacts that have accrued to date

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Summary

Introduction

Preoccupation among industrialized countries with security of energy supply and global climate change and developing country interest in improving the balance of trade and capturing value from the global carbon market have placed biofuels firmly on the map of global land use change. Reviews of contract farming and outgrower schemes in subSaharan Africa identify a number of important determinants of social outcomes These include the nature of the crop (shaping up-front investment levels and labor requirements), land tenure and availability (shaping willingness to invest and to participate), and farmers' income diversification (shaping farmers' bargaining power and exposure to risk) and prior experiences with large-scale investors (shaping levels of awareness at the negotiation stage) (Lamb and Muller 1982, Glover 1990, Porter and Phillips-Howard 1997). They include investor practices related to staffing and communication, product grading and pricing, and contract terms (e.g., input provision arrangements, transparency, barriers to exit), as well as contextual factors, such as pricing policies (which exert upward or downward pressures on rent capture by smallholders) and diversification of market outlets (Glover 1990, ECI Africa Consulting 2006, Freeman et al 2009, CSBF 2010)

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