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PRODUCTION & MANUFACTURING

The socio-economic impact assessment of biofuels production in South Africa: A rapid structured review of literature

ORCID Icon, &
Article: 2192328 | Received 19 Nov 2022, Accepted 14 Mar 2023, Published online: 17 Apr 2023
 

Abstract

Biofuels as a substitute for conventional aviation and motor vehicle fuels have received considerable global interest over the past decades mainly due to their perceived economic, social, and environmental benefits. Despite these economic benefits, most developing countries, including South Africa (SA), have yet to produce commercial biofuels. This study aims to inform South African policymakers. Prospective producers of biofuels about the potential socio-economic returns from producing biofuels at a commercial level through a structured rapid review of the literature differs from the peer-reviewed studies to date in South Africa, which focussed more on assessing the economic viability and environmental impacts of biofuels production. The systematic review methodology was used. About 48% of the published empirical studies reviewed integrated the socio-economic and environmental impact assessment, followed by studies that only examined the social impacts of biofuel (about 26%), about 15% of the studies examined economic impact only, and 11.54% examined the socio-economic impact. The results revealed that although the production of biofuels is associated with a positive socio-economic benefit, the biofuel industry is not viable without government support and the selling price of biofuel is not competitive relative to gasoline and petroleum alternatives. Lastly, the results revealed a need for more objective empirical studies in South Africa that can quantify the economy-wide implications of biofuels (especially second-generation biofuels) production. Only two (n = 2) of the 28 reviewed studies were conducted in South Africa from 28 studies reviewed. Both studies conducted in South Africa were feasibility studies focusing more on bioethanol; no study quantified the economy-wide impacts. The study recommends the implementation of the biofuels support mechanism by the government. Furthermore, amendments to the existing biofuels regulatory framework are recommended in order to support the production of advanced biofuels.

Abbreviations=
ANN=

Artificial Neural Network

BEPAM=

Biofuel Environmental Policy Analysis Model

BIS=

Biofuel Industry Strategy

CBA=

Cost Benefit Analysis

CeISTII=

Centre for Science, Technology and Innovation Indicators

CGEM=

Computable General Equilibrium Model

CHPP=

Combined Heat and Power Plant

CPP=

Carbon Payback Period

DMRE=

Department of Mineral Resources and Energy

DPME=

Department of Planning, Monitoring and Evaluation

GDP=

Gross Domestic Product

GHGs=

Greenhouse Gases

GIS=

Geographic Information System

HEF=

Hydrous Ethanol Fuel

HSRC=

Human Sciences Research Council

IEA=

International Energy Egency

IO=

Input-Output

LCA=

Life Cycle Assessment

LUC=

Land Use Change

ML=

Machine Learning

NDP=

National Development Plan

NPV=

Net Present Value

NRF=

National Research Foundation

PRISMA=

Preferred Reporting Items for Systematic Reviews and Meta-analysis

R&D=

Research and Development

SAF=

Sustainable Aviation Fuels

SEIA=

Socio-economic Impact Assessment

SIA=

Social Impact Assessment

SOC=

Soil Organic Content

SRC=

Short-rotation Coppices

TEA=

Techno Economic Analysis

Notations=
1 G=

First Generation Biofuels

2 G=

Second Generation Biofuels

3 G=

Third Generation Biofuels

4 G=

Fourth Generation Biofuels

CO2=

Carbon Dioxide

Symbols=
=

Euros

$=

Dollars

CO2eq=

Carbon Dioxide Equivalent

CO2 eq/mj=

Grams of Carbon Dioxide Equivalent per Megajoule

FJ$=

Fijian Dollar

GJ=

Gigajoule

ha=

Hectare

KM3=

Cubic Killometer

US$/kg=

United States Dollar per Kilogram

Acknowledgments

We acknowledge Human Sciences Research Council (HSRC), the Centre for Science Technology and Innovation Indicators (CeSTII), South Africa, for offering a writing retreat that assisted in completing this project.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was funded by the National Research Foundation (NRF), South Africa, under Innovation Scholarships