The Role of Ethanol in the Brazilian Economy: Three Decades of Progress
AbstractSustainable energy strategies require decision-makers in government, industry, academia and civil society alike to make choices among tradeoffs. Within the transport sector alone, ethanol has been shown to be the dominant solution among viable, low carbon options to date, yet questions remain over the economic and ecological impacts of this industry. In Brazil - the largest producer of sugarcane-based ethanol and a country with over three decades of ethanol development â€“ we find a strong basis for evaluating the ethanol industryâ€™s role in a national economy. In the mid 1970â€™s, Brazilian ethanol production received an important boost with the launch of the â€œProÃ¡lcoolâ€ program. The ethanol industry has subsequently evidenced flux until its consolidation in the period following 2000. Over the course of three decades, economic, institutional, technological and environmental determinants have factored in the success of Brazilian ethanol diffusion. In economic terms, price tradeoffs for ethanol vs. sugar and ethanol vs. gasoline played a role in scale-up of the biofuel together with balance of payment considerations. From an institutional standpoint, support for the ProÃ¡lcool program, deregulation of the sugar-cane sector in the 1990â€™s and fuel pump adaptations also factored. With respect to technology, the development of flex fuel cars, greater use of mechanized harvesting, and launch of domestic, co-generated, electrical power were key drivers. Finally, in environmental terms, challenges associated with pollution and public health in major cities as well as questions related to climate change gained visibility. In this paper, we analyze a set of input-output tables for the Brazilian economy from 1975 to 2008, taking the above factors into consideration. Deriving a series of indicators, such as multipliers and linkages, we study the evolution of the ethanol sectorâ€™s role in the Brazilian economy and its relation to the productive structure of the country.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1478.
Date of creation: Sep 2011
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Other versions of this item:
- Costa, Cinthia Cabral da & Cunha, Marcelo Pereira da & Guilhoto, Joaquim José Martins, 2011. "The role of ethanol in the brazilian economy: three decades of progress," MPRA Paper 32224, University Library of Munich, Germany.
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-11-14 (Agricultural Economics)
- NEP-ALL-2011-11-14 (All new papers)
- NEP-ENE-2011-11-14 (Energy Economics)
- NEP-ENV-2011-11-14 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guilhoto, Joaquim José Martins & Sesso Filho, Umberto Antonio, 2010.
"Estimação da matriz insumo-produto utilizando dados preliminares das contas nacionais: aplicação e análise de indicadores econômicos para o Brasil em 2005
[Estimation of input-output matrix u," MPRA Paper 37539, University Library of Munich, Germany.
- Guilhoto, J. J. M. & Sesso Filho, U. A., 2005.
"Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais
[Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
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