literature review & secondary data analysis of food-energy-water nexus in malawi

Literature Review & Secondary data analysis results of Food-Energy-

Water nexus SSA: The case of Malawi

Ephraim NkonyaIFPRI

Lilongwe Malawi

November 4, 2014

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Overview

I. Food security policies in MalawiA. Public investments to support policies

B. Achievements & impacts

C. What will this project contribute to finding new solutions/approach?

II. Energy policiesA. Opportunities and challenges

B. Drivers of choice of cooking energy source

C. Research implications

III. Concluding remarks


Contribution of study

Simultaneous analysis of food security, energy & water issues• Improved understanding of current policies and

institutions on food security, energy and water security in SSA

• Assessment of determinants of constraints and opportunities for pro-poor policies and institutions for integrated water-food-energy management


Food Policies in Malawi

Agricultural policies have largely focused on fertilizer subsidy & maize & tobacco production• Only recently, leguminous crops and products

received investment • Weak livestock production investment

• Irrigation development & rural cooking energy are limited.


Sources of energy & protein: daily per capita supply

Source: FAOSTAT, 2005-12


Public investment in fertilizer subsidy

Cropping year 2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Total fertilizer subsidized (‘000 MT)

131.39 179.00 216.56 202.28 160.00 160.00

Total maize seed subsidized (‘000 MT)

N/A 4.52 5.54 5.37 8.65 8.00

Total legume seed subsidized (‘000 MT)

0.00 0.00 0.02 N/A 1.55 1.60

Fertilizer subsidy rate paid by government (%)

64 72 79 91 95 90

Total program cost (US$ million)

55.71 88.69 114.62 274.92 114.60 127.47

Total cost as % agricultural budget

N/A 61 61 74 62 61

Total cost as % of national budget

5.6 8.4 8.9 16.2 8.2 6.5

Source: Lunduka et al. 2013


Impact of FISP

Study Outcome(s) measuredKey finding(s)

Chirwa(2010)

Real per capita annual expenditure

Annual per capita expenditure of households receiving full fertilizer coupon package increased by 8.2% compared to non-recipients.

Fisher and Kandiwa(2013)

Monetary value of the FISP coupon redeemed for modern maize and adoption by male and female farmers

Female household heads had a higher value of redeemed coupons than male household heads; FISP did not seem to influence the adoption of modern maize by gender

Mason & Ricker-Gilbert (2013)

Crowding out of commercial seed by subsidized seed and fertilizer

A kg of subsidized seed crowded out 0.56 kg of commercial seed.

[TN1]Franzi: Please add the articles cited in the paragraph above to this table.


Impact of FISP (cont’d)

Study Outcome measured Findings

Ricker-Gilbert et al. (2011)

Farmer demand for commercial fertilizer

One additional kg of subsidized fertilizer crowded out 0.22 kg of commercial fertilizer.

Ricker-Gilbert and Jayne (2011)

Maize production, net value of crop production, income

Small positive effect from subsidized fertilizer on maize production in current year and overtime.

Ricker-Gilbert and Jayne (2012)

Maize production and value of output

Returns to subsidized fertilizer were much higher for those at the top of the maize production distribution.


Food security trends in Malawi: Daily protein supply vs requirement


Energy requirement vs supply


Research questions on food security policies and strategies

How could FISP be improved to be:• More efficient by enhancing Nutrient-use

efficiency?– Conditional fertilizer subsidy

How could investment in other agricultural sectors enhance food security & poverty reduction efforts?


Energy policies & investments in Malawi

Malawi leading SSA in investment in fuel-efficientCookstoves – targeting soil bioenergy – energy ofThe poor


Limited public investment in development of fuel-efficient cookstoves

SSA government public expenditure on fuel efficient cooking stoves account for only 10%

Rural energy investment focus on rural electrification & production of liquid biofuel


Source of cooking energy for rural population

Woodfuel account for 80% of cooking energy in SSA

Clean energy (electricity, gas, kerosene) 8% in SSA & 18% in Southern Africa

Need to promote energy efficient


Implications of overdependence

Overdependence on woodfuel & concern on deforestation has led to repressive woodfuel harvesting legislations in several countries in SSA (Horst and Hovorka 2009) , which don’t offer alternative energy source

Fuel-inefficient cookstoves cause health problems and require long time to collect firewood.


Impact of using fuel efficient cookstoves


Fuelwood consumption & cooking time of traditional & improved cooking stoves, Malawi

Percentage on histogram indicates energy/time saving compared to traditional cookstove


Drivers of cooking energy source

Variable Charcoal Fuelwood Electricity Paraffin

Access to rural services

Received credit -0.097 -0.310*** -0.08 0.147*

Non-farm is primary activity -0.138 -0.228*** 0.022 -0.017

Received extension services -0.017 0.147** -0.014 0.140***

Received input vouchers -3.733*** 3.891*** -3.659*** 0.274

Human capital

Grow tobacco -0.920*** 0.573*** -0.336*** 0.206**Ln(hhd head age, years) -0.249* 0.140* 0.095 0.471***Female headed household -0.201 0.075 -0.059 0.435***


Drivers of cooking energy source choices

Variable Charcoal Fuelwood Electricity Paraffin

Human capital

Primary activity livestock -0.227** 0.075 0.064 -0.241***Level of education of household head (cf no formal education)

Primary education 0.295*** -0.130* 0.297*** -0.301***

Secondary education 0.738*** -0.656*** 0.636*** -0.454**

Post secondary education 0.815*** -1.014*** 1.130*** -3.523***Expenditure quintile (cf low quintile)

Medium 0.463** 0.085 0.013 -0.429***

High 1.249*** -0.416*** 0.624*** -0.720***

Ln(distance to city, km) -0.154*** 0.314*** -0.150*** 0.138***

Rural area (cf urban) -5.494*** 0.834 -2.032*** -7.009***


Implications

Non-wood energy source likely to be used by households with higher income, closer to markets, better educated & young

Use of fuel-efficient cooking stoves (FEC) almost non-existent

Environmental &health costs of using the traditional energy sources is high. This means• Current FEC efforts needs to be enhanced but

with greater integration of entrepreneurs & market mechanisms


Choice experiment set in Malawi & Mozambique – three types compared


Concluding remarks

For SSA to address food & energy security, • Time for governments to think beyond subsidies • Embrace FEW virtuous nexus• Solid bioenergy used majority of rural population

requires urgent attention

Our study will provide empirical evidence to support government efforts to implement virtuous FEW nexus


Food & energy security is a reality, but it needs well-targeted programs that addressesThe most vulnerable groups

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