Description:
The model described in this working paper, the National Bioenergy Investment Model (NBIM), simulates the decisions of domestic and international direct investors on whether to invest in biofuel projects in a developing country. The model can inform scenarios that assess the potential contribution of biofuel production to national development goals. It can also be run interactively, with users specifying policy packages and trajectories for highly influential but uncertain factors, such as fossil fuel prices. The design constraints for the model were set in a series of engagements with the South African Development Community (SADC) Biofuels Task Force in the context of an ongoing project on biofuels, sustainability and forests, funded by the European Commission (EC). The Center for International Forestry Research (CIFOR) led the EC biofuels project and, together with the South African Council for Scientific and Industrial Research (CSIR), collaborated closely with the Stockholm Environment Institute (SEI) on the development of the model. Several people provided substantive input into the design and structure of the model.