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Driving on liquid sunshine – the Brazilian biofuel experience: a policy driven analysis

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  • Clovis Zapata
  • Paul Nieuwenhuis

Abstract

This paper analyses Brazil's experience with biofuels, focusing on the central role of the federal government as the main force driving the implementation of alternative locally produced ethanol (ethyl alcohol) and biodiesel. The pioneering, large scale ethanol programme that started over 30 years ago can be considered the most successful experience with the use of biofuels to date, as the government was able to rapidly implement the use of ethanol (ethyl alcohol) as a substitute for petrol in the 1970s and 1980s. The work contributes to the general discussion of sustainable and renewable energy sources and sets out the key policy mechanisms used. The paper also innovatively looks at the second large governmental intervention in the renewable fuels market – the biodiesel programme. In addition to the contribution to the debate surrounding command‐and‐control measures and economic incentive instruments, the paper analyses how lessons learned from the ethanol experiment were taken into consideration in the design and implementation of the biodiesel mandate, including social and environmental facets. It emphasizes the uniqueness of producing sugarcane ethanol in the Brazilian context and how attempts to carry out similar fast growing biofuels programmes may not be possible in other parts of the world. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Clovis Zapata & Paul Nieuwenhuis, 2009. "Driving on liquid sunshine – the Brazilian biofuel experience: a policy driven analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 18(8), pages 528-541, December.
    • Handle: RePEc:bla:bstrat:v:18:y:2009:i:8:p:528-541
    DOI: 10.1002/bse.616
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    References listed on IDEAS

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    Cited by:

    1. Ribeiro, Barbara Esteves, 2013. "Beyond commonplace biofuels: Social aspects of ethanol," Energy Policy, Elsevier, vol. 57(C), pages 355-362.
    2. Wellington Spetic & Patricia Marquez & Robert Kozak, 2012. "Critical Areas and Entry Points for Sustainability‐Related Strategies in the Sugarcane‐Based Ethanol Industry of Brazil," Business Strategy and the Environment, Wiley Blackwell, vol. 21(6), pages 370-386, September.
    3. de Aguiar, Thereza R.S. & Freire, Fatima de Souza, 2017. "Shifts in modes of governance and sustainable development in the Brazilian oil sector," European Management Journal, Elsevier, vol. 35(5), pages 701-710.
    4. Charlotte Stead & Zia Wadud & Chris Nash & Hu Li, 2019. "Introduction of Biodiesel to Rail Transport: Lessons from the Road Sector," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    5. Michael Fotiadis & Michael L Polemis, 2018. "The Role of Sustainability‐Related Strategies on the Biofuel Industry: Trends, Prospects and Challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 757-772, September.

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