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Macro-environmental influence on the development of Brazilian fuel ethanol between 1975 and 2019

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  • Castañeda-Ayarza, Juan Arturo
  • Godoi, Beatriz Araújo

Abstract

Brazil is a pioneer in large-scale production and consumption of fuel ethanol. During its 40 plus years of history, the ethanol industry has faced crises and criticism. It has also contributed to the reduction in pollutants emission and the improvement of the country's economy. The productive organizations and natural conditions involved with sugarcane plantation were not the only responsible for the development of the ethanol market since there are organizational environments and several factors that may have played a significant role in an integrated and dynamic way. Therefore, through the PESTEL framework, the objective is to map and analyze the macro-environment influence on Brazilian ethanol development between 1975 and 2019. Results show that positive and negative macro-environmental factors showed an essential and near-balanced presence during the analyzed period. Over the first and third decades, the macro-environment exerted a more significant positive influence, while during the second decade, the negative factors portrayed the most adverse environment for Brazilian ethanol. The political and economic factors had continued relevance, while technological factors stood out positively in the most challenging periods in the sector. At present, social and environmental factors have assumed a predominant role, especially given the sector's future. Finally, the PESTEL analysis allowed to segment and characterized the macro-environment. It is a dynamic, integrated, and interdependent environment where potential opportunities and threats for developing a sector or organization can be identified.

Suggested Citation

  • Castañeda-Ayarza, Juan Arturo & Godoi, Beatriz Araújo, 2021. "Macro-environmental influence on the development of Brazilian fuel ethanol between 1975 and 2019," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
  • Handle: RePEc:eee:rensus:v:137:y:2021:i:c:s1364032120307437
    DOI: 10.1016/j.rser.2020.110457
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