Socio-economic analysis of bioenergy systems: a focus on employment

Dec 2003

Energy is both an engine of development and a source of many of the economic and environmental problems we face today. Clean and affordable energy services are not only essential for a sustainable society but also for poverty alleviation.
When the energy sources are also locally available, as in the case of fuelwood and charcoal, they can additionally provide a host of other development benefits, such as mobilization of investment, generation of jobs, improvement of urban and rural public health, and the development of local self-reliance. Most of these benefits are retained locally at the village-level and help to reduce poverty, in sharp contrast to fossil fuels and most other renewable energy options.
As wood energy is the dominant form of energy for about half of the world’s population and woodfuels are the major forest product in many countries, there is a need to know more about the socioeconomic dimensions of bioenergy systems, especially now that the topics of international commitments to cut carbon emissions and the reduction of poverty are very high on the international agenda. Actions derived from these commitments will encourage, among other things, the use of better and environmentally appropriate fuels in the years to come. Of these, wood energy initiatives (and also bioenergy) are the main topics for development. They will generate new technical, social, political, economic, financial and environmental challenges and opportunities, of which employment generation and income-creation are the most relevant issues, especially for the poorest areas of the world.
Various regions of the world have documented experiences on employment generation and income-creation for both traditional and modern uses of wood energy. The experiences have mostly been site-specific and situation-specific. Nevertheless, many questions have not yet received enough attention and detailed analysis. These include: how many jobs can be generated by the different unit processes of the woodfuel cycle? What level of investment is needed for the generation of one job by a bioenergy project?
This paper reviews information from many relevant publications and case studies and describes the main results and findings regarding the direct and indirect socio-economic impacts of wood energy (and bioenergy) systems. In addressing these issues, it provides an important complement to other reports produced under the FAO Wood Energy Programme.
From a macroeconomic perspective, this present study shows that bioenergy contributes to: a) import substitution with direct and indirect economic effects at national, regional and local level; b) economic growth through business expansion; and c) mobilizing investments for rural areas.
From a microeconomic perspective, the study confirms once more that the manpower required for the production of biofuel resources is about 5 times higher than that needed for the production of fossil fuels. It, however, also shows that the task of reviewing and assessing bioenergy issues is complex, challenging, and time consuming, and that we are not yet able to make good generalizations on which wood energy planning and policy exercises can be based.
One conclusion, however, is consistent and clear: among conventional and renewable energy forms, bioenergy has a great potential in job creation.

By: E. Remedio (University of San Carlos), J. U. Domac (Hrvoje Požar Energy Inst.)

 
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