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GTAP Resource #7008

"Toward sustainability in food-processing development: An empirically-based CGE analysis on the processing of cashew byproducts in Benin"
by Kinkpe, Thierry, Harald Grethe and Jonas Luckmann

This paper analyses the effects of cashew byproducts processing (cashew apple and cashew nut shells (CNS)) development using a Computable General Equilibrium (CGE). Simulations are designed based on an empirical study conducted in Benin. Results show that with higher domestic demand for cashew apple juice, the cashew apple processing sector grows and demands more cashew apples for processing. This increases the cashew apple price and makes cashew farming more attractive. Accordingly, cashew nut production and processing increase and more CNS are produced. CNS are further processed into bio-energy, cashew nut shell liquid (CNSL) and bio-fertilizer. Supporting the cashew apple processing sector (on top of the higher domestic demand) by subsidising it, allows full use of the produced cashew apple. In consequence, factors’ income increases to provide additional income to rural and urban households with pro-poor distribution, showing a poverty reduction potential. Nutritional security increases. GDP increases and the trade deficit decreases. We conclude that processing the cashew apple and CNS is desirable from economic as well as social and environmental perspectives. This study shows, therefore, that all three dimensions of sustainability can be improved by enhancing cashew byproducts processing.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version: Preliminary draft
Created: Kinkpe, T. (4/15/2023)
Updated: Kinkpe, T. (7/2/2023)
Visits: 314
- Calibration and parameter estimation
- Model extension/development
- Renewable energy
- Agricultural policies
- Economic analysis of poverty
- Africa (West)

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Comments (1 posted)
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Posted by: Kinkpe, Thierry   4/15/2023 4:53:00 PM
This paper are still a draft under development.
Not for publication