This is a chapter in a book entitled “Bioenergies in East Africa between challenges and opportunities” Edited by Marco Setti, Daria Zizzola, 2016.

Biofuels production has received increasing focus by developed and developing countries due to rising fossil fuel prices and the need to mitigate greenhouse gas emissions. The net economic and environmental impacts of biofuel programs have become an important question of public policy. In particular, the anticipation that biofuels may have a lower environmental footprint than fossil fuels is one of the important drivers. This study investigates the economy-wide impact of biofuel investment in Ethiopia with the focus on greenhouse gas (GHG) emissions and the forest sector.