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Expansion of the sugarcane industry and its effects on land use in São Paulo: Analysis from 2000 through 2015

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  • Caldarelli, Carlos Eduardo
  • Gilio, Leandro

Abstract

Since the turn of the century, Brazilian sugarcane production has increased and the area under sugarcane cultivation has expanded considerably, moves primarily driven by the use of ethanol as a fuel source. The crop’s expansion has impacting land use patterns and employment trends in several of Brazil’s regions. This study assesses the dynamics of land use competition in São Paulo, Brazil, the state responsible for the largest share of sugarcane production and fuel ethanol refining in the country. The assessment employs shift-share analysis carried out in two stages and data from 2000 through 2015. Results indicate that cultivated area dedicated to sugarcane increased dramatically over this period to the detriment not only of pasture areas, as is commonly emphasized in relevant literature, but also of land formerly dedicated to annual and perennial food crops, such as rice, beans, corn, potatoes, cassava, and fruits. The shift in agricultural land use has given rise to three main concerns: (1) land price increases; (2) food price increases; and (3) possible challenges to the use of sugarcane as an economical fuel source. The study analyzed the viability of sugarcane ethanol as a competitive alternative to other energy sources and the risks its use presents to food security. This paper also contains a summary of the "food vs. fuel" debate, adding new elements to refine the discussion.

Suggested Citation

  • Caldarelli, Carlos Eduardo & Gilio, Leandro, 2018. "Expansion of the sugarcane industry and its effects on land use in São Paulo: Analysis from 2000 through 2015," Land Use Policy, Elsevier, vol. 76(C), pages 264-274.
  • Handle: RePEc:eee:lauspo:v:76:y:2018:i:c:p:264-274
    DOI: 10.1016/j.landusepol.2018.05.008
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    References listed on IDEAS

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    1. Zimmermann, Beate & Zeddies, Jurgen, 2002. "International Competitiveness of Sugar Production," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7000, International Farm Management Association.
    2. Rudinei Toneto Júnior & André Luis Squarize Chagas, 2008. "Teremos que trocar energia por comida? Análise do impacto da expansão da produção de cana-de-açúcar sobre o preço da terra e dos alimentos," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807181249020, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Gilio, Leandro & Azanha Ferraz Dias de Moraes, Márcia, 2016. "Sugarcane industry's socioeconomic impact in São Paulo, Brazil: A spatial dynamic panel approach," Energy Economics, Elsevier, vol. 58(C), pages 27-37.
    4. Márcia Azanha Ferraz Dias de Moraes & David Zilberman, 2014. "Production of Ethanol from Sugarcane in Brazil," Natural Resource Management and Policy, Springer, edition 127, number 978-3-319-03140-8, March.
    5. Hector M. Nuñez & Hayri Önal & Madhu Khanna, 2013. "Land use and economic effects of alternative biofuel policies in Brazil and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 487-499, July.
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    Cited by:

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    2. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "Threshold Effect of High-Tech Industrial Scale on Green Development—Evidence from Yangtze River Economic Belt," Sustainability, MDPI, vol. 11(5), pages 1-21, March.
    3. Barragán-Escandón, Edgar A. & Zalamea-León, Esteban F. & Terrados-Cepeda, Julio & Vanegas-Peralta, P.F., 2020. "Energy self-supply estimation in intermediate cities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 129(C).
    4. Danelon, André Felipe & Spolador, Humberto Francisco Silva & Bergtold, Jason Scott, 2023. "The role of productivity and efficiency gains in the sugar-ethanol industry to reduce land expansion for sugarcane fields in Brazil," Energy Policy, Elsevier, vol. 172(C).
    5. Nilsa Duarte da Silva Lima & Irenilza de Alencar Nääs & João Gilberto Mendes dos Reis & Raquel Baracat Tosi Rodrigues da Silva, 2020. "Classifying the Level of Energy-Environmental Efficiency Rating of Brazilian Ethanol," Energies, MDPI, vol. 13(8), pages 1-16, April.
    6. Antonio Barragán-Escandón & Esteban Zalamea-León & Julio Terrados-Cepeda, 2019. "Incidence of Photovoltaics in Cities Based on Indicators of Occupancy and Urban Sustainability," Energies, MDPI, vol. 12(5), pages 1-26, February.

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    More about this item

    Keywords

    Sugarcane industry; Brazil; Shift-Share model; Land use;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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