IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v28y2013icp290-316.html
   My bibliography  Save this article

Analysis of socio-economic impacts of sustainable sugarcane–ethanol production by means of inter-regional Input–Output analysis: Demonstrated for Northeast Brazil

Author

Listed:
  • Herreras Martínez, Sara
  • van Eijck, Janske
  • Pereira da Cunha, Marcelo
  • Guilhoto, Joaquim J.M.
  • Walter, Arnaldo
  • Faaij, Andre

Abstract

This study assesses the socio-economic impacts in terms of value added, imports and employment of sugarcane-derived bioethanol production in Northeast (NE) Brazil. An extended inter-regional Input–Output (IO) model has been developed and is used to analyse three scenarios, all projected for 2020: a business-as-usual scenario (BaU) which projects current practices, and two scenarios that consider more efficient agricultural practices and processing efficiency (scenario A) and in addition an expansion of the sector into new areas (scenario B). By 2020 in all scenarios, value added and imports increase compared to the current situation. The value added by the sugarcane–ethanol sector in the NE region is 2.8 billion US$ in the BaU scenario, almost 4 billion US$ in scenario A, and 9.4 billion US$ in scenario B. The imports in the region will grow with 4% (BaU scenario), 38% (scenario A) and 262% (scenario B). This study shows that the large reduction of employment (114,000 jobs) due to the replacement of manual harvesting by mechanical harvesting can be offset by additional production and indirect effects. The total employment in the region by 2020 grows with 10% in scenario A (around 12,500 jobs) and 126% in scenario B (around 160,000 jobs). The indirect effects of sugarcane production in the NE are large in the rest of Brazil due to the import of inputs from these regions. The use of an extended inter-regional IO model can quantify direct and indirect socio-economic effects at regional level and can provide insight in the linkages between regions. The application of the model to NE Brazil has demonstrated significant positive socio-economic impacts that can be achieved when developing and expanding the sugarcane–ethanol sector in the region under the conditions studied here, not only for the NE region itself but also for the economy of the rest of Brazil.

Suggested Citation

  • Herreras Martínez, Sara & van Eijck, Janske & Pereira da Cunha, Marcelo & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, Andre, 2013. "Analysis of socio-economic impacts of sustainable sugarcane–ethanol production by means of inter-regional Input–Output analysis: Demonstrated for Northeast Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 290-316.
    • Handle: RePEc:eee:rensus:v:28:y:2013:i:c:p:290-316
    DOI: 10.1016/j.rser.2013.07.050
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113004954
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.07.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guilhoto, Joaquim José Martins & Barros, Alexandre L. Mendonça de & Marjotta-Maistro, Marta C. & Istake, Márcia, 2002. "Mechanization process of the sugar cane harvest and its direct and indirect impact over the employment in Brazil and in its 5 macro regions," MPRA Paper 38070, University Library of Munich, Germany.
    2. Marcelo Pereira Da Cunha & Jose Antonio Scaramucci, 2006. "Bioethanol As Basis for Regional Development in Brazil: An Input-Output Model With Mixed Technologies," ERSA conference papers ersa06p242, European Regional Science Association.
    3. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    4. Liang, Qiao-Mei & Fan, Ying & Wei, Yi-Ming, 2007. "Multi-regional input-output model for regional energy requirements and CO2 emissions in China," Energy Policy, Elsevier, vol. 35(3), pages 1685-1700, March.
    5. Neuwahl, Frederik & Löschel, Andreas & Mongelli, Ignazio & Delgado, Luis, 2008. "Employment impacts of EU biofuels policy: Combining bottom-up technology information and sectoral market simulations in an input-output framework," Ecological Economics, Elsevier, vol. 68(1-2), pages 447-460, December.
    6. Goldemberg, José & Coelho, Suani Teixeira & Guardabassi, Patricia, 2008. "The sustainability of ethanol production from sugarcane," Energy Policy, Elsevier, vol. 36(6), pages 2086-2097, June.
    7. Wicke, Birka & Smeets, Edward & Tabeau, Andrzej & Hilbert, Jorge & Faaij, André, 2009. "Macroeconomic impacts of bioenergy production on surplus agricultural land--A case study of Argentina," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2463-2473, December.
    8. Crago, Christine L. & Khanna, Madhu & Barton, Jason & Giuliani, Eduardo & Amaral, Weber, 2010. "Competitiveness of Brazilian sugarcane ethanol compared to US corn ethanol," Energy Policy, Elsevier, vol. 38(11), pages 7404-7415, November.
    9. Azadi, Hossein & de Jong, Sanne & Derudder, Ben & De Maeyer, Philippe & Witlox, Frank, 2012. "Bitter sweet: How sustainable is bio-ethanol production in Brazil?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3599-3603.
    10. Scaramucci, Jose A. & Perin, Clovis & Pulino, Petronio & Bordoni, Orlando F.J.G. & da Cunha, Marcelo P. & Cortez, Luis A.B., 2006. "Energy from sugarcane bagasse under electricity rationing in Brazil: a computable general equilibrium model," Energy Policy, Elsevier, vol. 34(9), pages 986-992, June.
    11. Lamers, Patrick & Hamelinck, Carlo & Junginger, Martin & Faaij, André, 2011. "International bioenergy trade--A review of past developments in the liquid biofuel market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2655-2676, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Markandya, Anil & Arto, Iñaki & González-Eguino, Mikel & Román, Maria V., 2016. "Towards a green energy economy? Tracking the employment effects of low-carbon technologies in the European Union," Applied Energy, Elsevier, vol. 179(C), pages 1342-1350.
    2. van Eijck, Janske & Romijn, Henny & Balkema, Annelies & Faaij, André, 2014. "Global experience with jatropha cultivation for bioenergy: An assessment of socio-economic and environmental aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 869-889.
    3. de Carvalho, Ariovaldo Lopes & Henggeler Antunes, Carlos & Freire, Fausto & Oliveira Henriques, Carla, 2016. "A multi-objective interactive approach to assess economic-energy-environment trade-offs in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1429-1442.
    4. Nogueira, Luiz Augusto Horta & Antonio de Souza, Luiz Gustavo & Cortez, Luís Augusto Barbosa & Leal, Manoel Regis Lima Verde, 2017. "Sustainable and Integrated Bioenergy Assessment for Latin America, Caribbean and Africa (SIByl-LACAf): The path from feasibility to acceptability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 292-308.
    5. Scaife, Mark A. & Merkx-Jacques, Alexandra & Woodhall, David L. & Armenta, Roberto E., 2015. "Algal biofuels in Canada: Status and potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 620-642.
    6. Hernandez-Perdomo, Elvis A. & Mun, Johnathan & Rocco S., Claudio M., 2017. "Active management in state-owned energy companies: Integrating a real options approach into multicriteria analysis to make companies sustainable," Applied Energy, Elsevier, vol. 195(C), pages 487-502.
    7. Ramirez-Contreras, Nidia Elizabeth & Faaij, André P.C., 2018. "A review of key international biomass and bioenergy sustainability frameworks and certification systems and their application and implications in Colombia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 460-478.
    8. Seksan Papong & Norihiro Itsubo & Yuya Ono & Pomthong Malakul, 2016. "Development of Social Intensity Database Using Asian International Input–Output Table for Social Life Cycle Assessment," Sustainability, MDPI, vol. 8(11), pages 1-25, November.
    9. Wang, Ce & Liao, Hua & Pan, Su-Yan & Zhao, Lu-Tao & Wei, Yi-Ming, 2014. "The fluctuations of China’s energy intensity: Biased technical change," Applied Energy, Elsevier, vol. 135(C), pages 407-414.
    10. Vasconcellos, H.A.S. & Caiado Couto, L., 2021. "Estimation of socioeconomic impacts of wind power projects in Brazil's Northeast region using Interregional Input-Output Analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    11. Araghi, Mansour Khalili & Barkhordari, Sajjad & Hassannia, Razeih, 2023. "Economic impacts of producing bioethanol in Iran: A CGE approach," Energy, Elsevier, vol. 263(PC).
    12. Nong, Duy & Nguyen, Duong Binh & Nguyen, Trung H. & Wang, Can & Siriwardana, Mahinda, 2020. "A stronger energy strategy for a new era of economic development in Vietnam: A quantitative assessment," Energy Policy, Elsevier, vol. 144(C).
    13. Sievers, Luisa & Schaffer, Axel, 2016. "The impacts of the German biofuel quota on sectoral domestic production and imports of the German economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 497-505.
    14. Seksan Papong & Norihiro Itsubo & Pomthong Malakul & Masanori Shukuya, 2015. "Development of the Social Inventory Database in Thailand Using Input–Output Analysis," Sustainability, MDPI, vol. 7(6), pages 1-30, June.
    15. Aguilar-Rivera, Noé, 2019. "A framework for the analysis of socioeconomic and geographic sugarcane agro industry sustainability," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 149-160.
    16. Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Comparison of the economic effects of nuclear power and renewable energy deployment in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    17. Nakano, Satoshi & Arai, Sonoe & Washizu, Ayu, 2018. "Development and application of an inter-regional input-output table for analysis of a next generation energy system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2834-2842.
    18. Viccaro, Mauro & Rocchi, Benedetto & Cozzi, Mario & Egging, Rudolf G. & Perez-Valdes, Gerardo A. & Romano, Severino, 2017. "Promoting the Bioelectricity Sector at the Regional Level: an Impact Analysis of Energy Tax Policy," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261158, European Association of Agricultural Economists.
    19. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.
    20. Brinkman, Marnix L.J. & da Cunha, Marcelo P. & Heijnen, Sanne & Wicke, Birka & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, André P.C. & van der Hilst, Floor, 2018. "Interregional assessment of socio-economic effects of sugarcane ethanol production in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 347-362.
    21. Elizondo, Alejandra & Boyd, Roy, 2017. "Economic impact of ethanol promotion in Mexico: A general equilibrium analysis," Energy Policy, Elsevier, vol. 101(C), pages 293-301.
    22. Christopher A. Scott & Zachary P. Sugg, 2015. "Global Energy Development and Climate-Induced Water Scarcity—Physical Limits, Sectoral Constraints, and Policy Imperatives," Energies, MDPI, vol. 8(8), pages 1-15, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brinkman, Marnix L.J. & Wicke, Birka & Faaij, André P.C. & van der Hilst, Floor, 2019. "Projecting socio-economic impacts of bioenergy: Current status and limitations of ex-ante quantification methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    2. Brinkman, Marnix L.J. & da Cunha, Marcelo P. & Heijnen, Sanne & Wicke, Birka & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, André P.C. & van der Hilst, Floor, 2018. "Interregional assessment of socio-economic effects of sugarcane ethanol production in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 347-362.
    3. Deborah Bentivoglio & Adele Finco & Mirian Rumenos Piedade Bacchi, 2016. "Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market," Energies, MDPI, vol. 9(6), pages 1-16, June.
    4. Sievers, Luisa & Schaffer, Axel, 2016. "The impacts of the German biofuel quota on sectoral domestic production and imports of the German economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 497-505.
    5. Zanxin Wang & Wei Wei & Margaret Calderon & Xianchun Liao, 2019. "Impacts of biofuel policy on the regional economy and carbon emission reduction in Yunnan, China," Energy & Environment, , vol. 30(5), pages 930-948, August.
    6. Ge, Jianping & Lei, Yalin & Tokunaga, Suminori, 2014. "Non-grain fuel ethanol expansion and its effects on food security: A computable general equilibrium analysis for China," Energy, Elsevier, vol. 65(C), pages 346-356.
    7. Khatiwada, Dilip & Leduc, Sylvain & Silveira, Semida & McCallum, Ian, 2016. "Optimizing ethanol and bioelectricity production in sugarcane biorefineries in Brazil," Renewable Energy, Elsevier, vol. 85(C), pages 371-386.
    8. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    9. Castañeda-Ayarza, Juan Arturo & Cortez, Luis Augusto Barbosa, 2017. "Final and B molasses for fuel ethanol production and some market implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1059-1065.
    10. de Freitas, Luciano Charlita & Kaneko, Shinji, 2012. "Is there a causal relation between ethanol innovation and the market characteristics of fuels in Brazil?," Ecological Economics, Elsevier, vol. 74(C), pages 161-168.
    11. Malik, Arunima & Lenzen, Manfred & Ely, Rômulo Neves & Dietzenbacher, Erik, 2014. "Simulating the impact of new industries on the economy: The case of biorefining in Australia," Ecological Economics, Elsevier, vol. 107(C), pages 84-93.
    12. García, Carlos A. & Manzini, Fabio & Islas, Jorge M., 2017. "Sustainability assessment of ethanol production from two crops in Mexico," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1199-1207.
    13. Vicente E. Montano & Rosalia T. Gabronino & Restie E. Torres, 2019. "The curious relationship between agricultural and energy price index: A Vector Error Correction Model (VECM) analysis approach," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(3), pages 161-177.
    14. Jonker, J.G.G. & van der Hilst, F. & Junginger, H.M. & Cavalett, O. & Chagas, M.F. & Faaij, A.P.C., 2015. "Outlook for ethanol production costs in Brazil up to 2030, for different biomass crops and industrial technologies," Applied Energy, Elsevier, vol. 147(C), pages 593-610.
    15. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Decomposition of CO2 emissions change from energy consumption in Brazil: Challenges and policy implications," Energy Policy, Elsevier, vol. 39(3), pages 1495-1504, March.
    16. Ling Yang & Michael L. Lahr, 2019. "The Drivers of China’s Regional Carbon Emission Change—A Structural Decomposition Analysis from 1997 to 2007," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    17. Zhang, Yan & Zheng, Hongmei & Yang, Zhifeng & Su, Meirong & Liu, Gengyuan & Li, Yanxian, 2015. "Multi-regional input–output model and ecological network analysis for regional embodied energy accounting in China," Energy Policy, Elsevier, vol. 86(C), pages 651-663.
    18. Lixiao Zhang & Qiuhong Hu & Fan Zhang, 2014. "Input-Output Modeling for Urban Energy Consumption in Beijing: Dynamics and Comparison," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-11, March.
    19. Unknown, 2013. "Journal of International Agricultural Trade and Development, Volume 09, Number 1, 2013," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 9(1), pages 140-140.
    20. Lindner, Soeren & Liu, Zhu & Guan, Dabo & Geng, Yong & Li, Xin, 2013. "CO2 emissions from China’s power sector at the provincial level: Consumption versus production perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 164-172.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:28:y:2013:i:c:p:290-316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.