Epsilon Archive for Student Projects

Abstract

In South Africa, the production and use of biofuels is increasingly being contemplated as a policy instrument to stimulate rural development and reduce poverty by creating sustainable income earning opportunities. By using social accounting matrix, this thesis examines economic gains, if any, in South Africa following maize-based bioethanol production using the country’s surplus maize as feedstock. The findings suggest this particular biofuel policy leads to a moderate increase in domestic industries’ production, value-added and foreign exchange earnings. However, the vast income inequality among the country’s various population groups remains unchanged.