Expected Growth of Sugarcane Industry and Impact on the Brazilian Economy PDF Download
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Author: Cinthia Cabral da Costa
Publisher:
ISBN:
Category :
Languages : en
Pages : 13
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Book Description
The sugarcane sector in Brazil has been achieving large increases in production since the beginning of the 2000s, owing to the deregulation of its two main products: sugar and ethanol. This growth has been driven more by the ethanol production, which grew at a rate of 13% per annum (between 2000 and 2009), than by sugar, which grew at an annual rate of 8% over the same period. Nevertheless, instability in the supply of ethanol is still a problem in the industry. Structural changes, such as the mechanization of sugarcane harvesting, are also in progress. Taking into account the future demands for sugar and ethanol and structural changes in projections, made by industry representatives for the years 2015 and 2020, this article employs inuput-output analysis to estimate the impact of these projections on the Brazilian economy. The results show that in 2010, with a production of R$ 66.6 billion for sugar and R$ 36.2 billion for ethanol (at 2010 prices), the total impact on the economy was about R$ 374.6 billion in Total Output (TO), R$ 210 billion in the Gross Domestic Product (GDP), R$ 62.4 billion in remuneration to employees, and a gain of 5.1 million jobs, per annum. For 2015, the estimated economic impact on TO, GDP and employee earnings was 56% higher than the values for 2010. As for 2020, the projections showed that the increases were in the range from 109 to 117% in scenario 1, or 91 to 98% in scenario 2. For job numbers, the impact in 2015 was 48% higher than that reported for 2010, while in 2020 it was between 82 to 99% higher. It was also observed that the income effect of the shocks in the ethanol and sugar sectors was the most significant part of the predicted impact on the number of jobs created in the economy. The results showed, therefore, the importance of the sugarcane industry in the economy, emphasizing the need for government policies to foster the growth of this sector.
Author: Cinthia Cabral da Costa
Publisher:
ISBN:
Category :
Languages : en
Pages : 13
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Book Description
The sugarcane sector in Brazil has been achieving large increases in production since the beginning of the 2000s, owing to the deregulation of its two main products: sugar and ethanol. This growth has been driven more by the ethanol production, which grew at a rate of 13% per annum (between 2000 and 2009), than by sugar, which grew at an annual rate of 8% over the same period. Nevertheless, instability in the supply of ethanol is still a problem in the industry. Structural changes, such as the mechanization of sugarcane harvesting, are also in progress. Taking into account the future demands for sugar and ethanol and structural changes in projections, made by industry representatives for the years 2015 and 2020, this article employs inuput-output analysis to estimate the impact of these projections on the Brazilian economy. The results show that in 2010, with a production of R$ 66.6 billion for sugar and R$ 36.2 billion for ethanol (at 2010 prices), the total impact on the economy was about R$ 374.6 billion in Total Output (TO), R$ 210 billion in the Gross Domestic Product (GDP), R$ 62.4 billion in remuneration to employees, and a gain of 5.1 million jobs, per annum. For 2015, the estimated economic impact on TO, GDP and employee earnings was 56% higher than the values for 2010. As for 2020, the projections showed that the increases were in the range from 109 to 117% in scenario 1, or 91 to 98% in scenario 2. For job numbers, the impact in 2015 was 48% higher than that reported for 2010, while in 2020 it was between 82 to 99% higher. It was also observed that the income effect of the shocks in the ethanol and sugar sectors was the most significant part of the predicted impact on the number of jobs created in the economy. The results showed, therefore, the importance of the sugarcane industry in the economy, emphasizing the need for government policies to foster the growth of this sector.
Author: Brent Borrell
Publisher: World Bank Publications
ISBN:
Category : Azucar - Brasil
Languages : en
Pages : 35
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Book Description
By changing its policy, Brazil could increase its sugar exports greatly. The world price would decline, but Brazil's sugar revenues would increase.
Author: Annelies Deuss
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Since 2001, Brazil has experienced a sharp increase in sugarcane production due to the upsurge in demand for sugar and ethanol, two products derived from sugarcane. While the increase in sugarcane production has led to income and employment opportunities in the sugar and ethanol sector, the benefits of sugarcane expansion could vary significantly by the region where sugarcane is cultivated. This dissertation consists of three studies that examine the economic impacts of the recent sugarcane expansion in Brazil. Whereas previous studies only show associations between sugarcane expansion and economic indicators, this research establishes a causal relationship using estimators based on the propensity score. The propensity score is defined in this research as the probability that a municipality expands sugarcane production, given a set of observable characteristics. One of these characteristics is the suitability of a municipality to grow sugarcane. Data on suitability of land were recently published at the national level. The first study analyzes whether municipalities in Sao Paulo state that expanded sugarcane production between 2002 and 2006 as a result experienced higher economic growth. The results indicate that there is no statistically significant impact of sugarcane expansion on GDP per capita growth. The second study examines the economic growth impacts of the increased sugarcane production in the different sugarcane producing regions in Brazil. The findings show that sugarcane expansion led to GDP per capita growth in three regions: in Brazil as a whole, in the North-Northeast and in the Center-South excluding Sao Paulo. In addition, it is demonstrated that this latter region could benefit from future sugarcane expansions. The final study investigates the underlying reasons for the findings in the first study. It examines the impact of sugarcane expansion in Sao Paulo state on growth in GDP per capita, in employment and in wages in the different sectors of the economy. The results suggest that sugarcane expansion has positive impacts on local economies in Sao Paulo state. Further research with updated data is needed to establish whether the positive influences at sector level affected total GDP data in lagged terms.
Author: Brent Borrell
Publisher: World Bank Publications
ISBN:
Category : Brasilien
Languages : en
Pages : 28
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Book Description
The Brazil sugar and ethanol story is as follows: direct government intervention overrides market forces, markets undergo dramatic change, intervention establishes vested interests, rent-seeking blocks adjusment to market change, economic objectives become blurred behind political objectives, opportunities go begging, industry profitability suffers, and national income is foregone. A simple economic model of the Brazilian sugarcane sector and policy, interventions is used to measure the costs of existing policies and to develop better policies. Bazil is an efficient producer of sugar, but policy intervention causes: underproduction of sugarcane, the wrong mix of sugar and ethanol from cane (too much ethanol, not enough sugar), missed opportunities to market ethanol in high value uses (as an octane enhancer and clean fuel), and missed opportunities to make the work sugar market more competitive. Adopting more market based policies could be worth billions of dollars extra to Brazil annually.
Author: Márcia Azanha Ferraz Dias de Moraes
Publisher: Springer Science & Business Media
ISBN: 3319031406
Category : Business & Economics
Languages : en
Pages : 225
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Book Description
The success of Brazil in the large-scale production and use of fuel ethanol has been widely discussed and analyzed by other countries interested in adopting policies designed to encourage the use of biofuels. Within this context, certain questions arise: Could the Brazilian experience be replicated in other countries? What were the conditions that enabled the creation of the Brazilian Proálcool (National Ethanol Program and what lessons can be learned? To examine these issues, it is important to understand the functioning of the key, interconnected markets (those for sugarcane, sugar and ethanol), which, from their inception, were the objects of extensive government intervention until 1999. Two main conditions enabled the creation of Proálcool: robust production of sugarcane and sugar (tightly regulated by the government, which applied the numerous regulations then in place); and the military regime that was in place at the time, whose decision-making and enforcement powers were quite broad, facilitating the carrying out of the necessary actions, as well as making it easier to coordinate the activities of the various stakeholders and sectors involved. This book increases understanding of the functioning of the sugarcane supply chain in Brazil, not only during the phase of government intervention but also in recent years (in the free-market environment). The lessons, positive and negative, gleaned from the Brazilian experience can contribute to reflection on and the development of alternative modalities of biofuel production in other countries, making the book of interest to scholars and policy-makers concerned with biofuel and renewable resources as well as economic development.
Author: Maria Backhouse
Publisher: Springer Nature
ISBN: 3030689441
Category : Political Science
Languages : en
Pages : 339
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Book Description
This open access book focuses on the meanings, agendas, as well as the local and global implications of bioeconomy and bioenergy policies in and across South America, Asia and Europe. It explores how a transition away from a fossil and towards a bio-based economic order alters, reinforces and challenges socio-ecological inequalities. The volume presents a historically informed and empirically rich discussion of bioeconomy developments with a particular focus on bio-based energy. A series of conceptual discussions and case studies with a multidisciplinary background in the social sciences illuminate how the deployment of biomass sources from the agricultural and forestry sectors affect societal changes concerning knowledge production, land and labour relations, political participation and international trade. How can a global perspective on socio-ecological inequalities contribute to a complex and critical understanding of bioeconomy? Who participates in the negotiation of specific bioeconomy policies and who does not? Who determines the agenda? To what extent does the bioeconomy affect existing socio-ecological inequalities in rural areas? What are the implications of the bioeconomy for existing relations of extraction and inequalities across regions? The volume is an invitation to reflect upon these questions and more, at a time when the need for an ecological and socially just transition away from a carbon intensive economy is becoming increasingly pressing.
Author: Felix Kaup
Publisher: Springer
ISBN: 3319165836
Category : Business & Economics
Languages : en
Pages : 302
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Book Description
This book offers an in-depth analysis of the Brazilian sugarcane complex with a special focus on technological advances that promote sustainable development. It first examines the question why sugarcane-based ethanol from Brazil is considered a superior alternative to fossil fuel compared to other biofuels produced on an industrial scale and subsequently analyzes the most dynamic areas within the sugarcane sector with regard to relevant actors, technologies and markets in order to determine if the sector can be considered an innovation system. The empirical research presented here is based on multiple research methods and derives its data from interviews with Brazilian experts of the sugarcane sector and by a thorough literature review. The book will be of special interest to researchers and practitioners interested in understanding the key mechanisms in successful innovation systems that promote a transition towards sustainable development and mobility.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 82
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Book Description
The popular expression goes: "Brazil is the country of the future and always will be." Yet Southeast Brazil, consisting of São Paulo, Rio de Janeiro, Minas Gerais and Espírito Santo, is already the future. This raises the question why did the region industrialize first and faster than the rest of the country? This paper analyzes the role of factor endowments and institutions on economic development in Brazil since its colonial period. I provide evidence that the land and labor endowments in the Southeast region led to the development of coffee cultures, which initiated an economic cycle (1830-1930) that altered the region's institutional structure, and thus its economic potential in the long run. In contrast, the large tropical Northeast region, where sugar cane slave plantations dominated its extensive coastline and nearby interior, poor economic and political institutions established during the sugar cane cycle (1550-1760) severely limited growth prospects in the region. Differing initial endowment conditions, through the institutional channel, led the Southeast to industrialize in the first half of the twentieth century, while the Northeast stagnated. Today southeastern states perform significantly better than their northeastern counterparts, where income inequality remains high. In 2009, approximately forty percent of the northeastern population lived below the poverty line, whereas the Southeast numbers are close to one tenth. The legacy of the slave plantations left a negative and persistent impact in the Northeast, while the southeastern states industrialized and became wealthy within decades of the end of the coffee cycle. The sugar cane economy declined particularly because the status quo limited the development of new agricultural technologies, which made Brazilian sugar non-competitive in the world market when the Dutch began their own large scale production in the Dutch Antilles. Coffee, however, remained an important economic activity after 1930, even though increasing industrial output diminished coffee's share in Brazilian GDP. Coffee propelled the Southeast into the future. The coffee cycle was also crucial to the process of institutional change because private entrepreneurs were the drivers of growth for the first time in Brazilian economic history. The state became a secondary player in the economy. A competitive political structure forced the old system to redirect government revenues to the provision of public goods and away from rent-extracting activities. At the regional level, old time northeastern leadership remained powerful, but a less centralized federal government formalized by the 1891 Constitution gave more influence to southeastern politicians. The new constitution virtually removed the national status quo previously imposed by northeastern control. The country's president almost always came or had strong ties to southeastern leadership. The southeastern states promoted legal and economic institutions that protected property rights, limited the scope of government taxation and directed state revenues to infrastructure and capital-creating projects. Coffee barons and early industrialists competed for political power, which resulted in the institutional structure that allowed the Southeast to outperform the rest of the country throughout the twentieth century. In this paper, I draw on the relationship between initial factor endowments and institutions, proposed by Stanley Engerman and Kenneth Sokoloff (1994), and Douglass North's (1990) theory of path dependence to explain today's regional economic differences within Brazil. Using historical evidence and instrumental variable estimation, I find that southeastern initial endowments affected the region's economic development through the institutional channel, and that coffee states perform considerably better today than those affected by the sugar cane cycle.
Author: Heloisa Lee Burnquist
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
This paper estimates the impact of an increase in Brazilian sugar and ethanol demand for exports upon the countries' overall production and employment. The impacts were simulated considering each of the major cane producing areas of the country (Center-South and North-Northeast). An inter-regional input-output matrix for the Brazilian economy was used for that purpose. It was observed that a demand shock, resulting from an expansion of sugar exports presented an impact of greater magnitude upon the countries' production and employment when compared to the impact from an increase in ethanol. In addition, the results indicated that when the impact is generated at the North-Northeastern Brazil, production and employment is more affected than when it begins at the Center-South region of the country. The result of how the economic benefits are disseminated in the economy is important to identify policies and establish targets for regional production.
Author: Marcos Fava Neves
Publisher: Springer Science & Business Media
ISBN: 9086867219
Category : Science
Languages : en
Pages : 139
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Book Description
This book is a contribution of the authors to the food - fuel debate. During 2007 and 2008 several factors led to the food inflation problem: growing population, income distribution, urbanization, biofuel, social programs, production scarcity etc.. Biofuel got most of the blame for food inflation but its responsibility was only limited. There are several possibilities of solving the food inflation problem that are discussed this book. It explores the example of Brazil’s agricultural sector, where a quiet revolution occurred in the last 15 years. This development is leading to Brazil becoming one of the largest food exporters globally. This position will strengthen as an additional 100 million hectares becomes available for crop development. The second part of the book explores the basics of the sugar cane chain. Sugar cane occupies less than 2% of Brazilian arable land and supplies 50% of Brazilian car fuel. In 2010 Brazil produced 53% of the world’s sugar. Sugar cane produces sugar, ethanol (used as car fuel), biogases that are used to co-generate electricity and other by-products. Biofuel is a booming industry. New technologies allow production of diesel and other fuels from cane. Sugar cane ethanol is the only renewable fuel that can currently compete with gasoline. Coca Cola just launched the plastic bottle with sugar cane plastic. This book helps us to understand Brazilian agribusiness and sugar cane economics from various perspectives e.g. international investments, sustainability, future trends and the strategic plan for the Brazilian industry.
