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Biodiesel in Brazil: A Market Analysis and Its Economic Effects

Author

Listed:
  • Marcelo Silva
  • Francisco Teixeira
  • Ednildo Torres
  • Angela Rocha
  • Francisco Gaudêncio Freires
  • Tito Santos
  • Pieter de Jong

Abstract

The commercial production of biodiesel in Brazil began in 2005 and increased in such a way that the country has become one of the largest producers in terms of volume in 2012. This study aims to analyze the biodiesel market in Brazil and its socio-economic effects resulting from the mandatory addition of biodiesel in the distribution system of mineral diesel. This work is characterized as a qualitative and exploratory study. The technical procedures adopted include literature research and data collection from government agencies involved. It is highlighted that the Programa Nacional de Produção e Uso de Biodiesel no Brasil - PNPB (“National Program for Production and Use of Biodiesel in Brazil†) was designed for the purposes of- promoting rural development; the growth of biodiesel production plants; and positively impact the environment. The survey showed the following results- i) significant increase in investment in renewable energy, especially biodiesel, ii) a high unused capacity in the biodiesel production plants; iii) a high dependence on soy for biodiesel production, iv) unfavorable prices of oilseeds; v) high concentration of the biodiesel market; vi) difficulty in standardizing the biodiesel auctions; vii) a small increase in inflation; viii) increased generation of income, employment and Gross Domestic Product (GDP) due to the presence of biodiesel in the energy market. It was found that by adding a percentage of biodiesel to diesel oil caused positive impacts on the national economy, contributing to improvement in employment policies, income distribution, environmental issues, technological and regional development.

Suggested Citation

  • Marcelo Silva & Francisco Teixeira & Ednildo Torres & Angela Rocha & Francisco Gaudêncio Freires & Tito Santos & Pieter de Jong, 2014. "Biodiesel in Brazil: A Market Analysis and Its Economic Effects," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 6(8), pages 160-160, July.
    • Handle: RePEc:ibn:jasjnl:v:6:y:2014:i:8:p:160
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    References listed on IDEAS

    as
    1. Ajanovic, Amela, 2011. "Biofuels versus food production: Does biofuels production increase food prices?," Energy, Elsevier, vol. 36(4), pages 2070-2076.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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