Biofuels and Food Security: Micro-evidence from Ethiopia

This paper provides microeconomic evidence on food security impacts of privately organized biofuel outgrower schemes in Ethiopia. We conducted a household and community level survey and evaluated the impact of castor bean farming. We use endogenous switching regressions to analyze the impact on food security. Food security (as measured by a “food gap”) and food caloric intake is significantly better in households producing castor beans. “Fuel” and “food” are complements rather than substitutes at the micro-level in castor production in Ethiopia.