Biodiesel in Brazil: A Market Analysis and Its Economic Effects

Marcelo Santana Silva, Francisco Lima Cruz Teixeira, Ednildo Andrade Torres, Angela Machado Rocha, Francisco Gaudêncio Mendonça Freires, Tito Britto 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.


Full Text: PDF DOI: 10.5539/jas.v6n8p160

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Journal of Agricultural Science ISSN 1916-9752 (Print) ISSN 1916-9760 (Online)

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