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The Replication of the Brazilian Ethanol Model in Developing Countries: A General Feasibility Assessment.

Leyow, Luke LU (2011) In Lund University - Department of Economic History Master's Theses EKHR21 20111
Department of Economic History
Abstract
Brazil is the only country that has managed to successfully implement an economically viable large-scale biofuel program. In 2008, locally produced ethanol derived from sugarcane replaced more than half of the domestic gasoline market, without the aid of any government subsidies. Ethanol in Brazil represents an economically lucrative industry that also contributes to national energy and environmental security. This industry, however, is not a recent development. The Brazilian ethanol system has developed gradually over the past 35 years, and is the result of concerted efforts by the government and other relevant industries. The price of ethanol has declined markedly since the inception of the program due to constant technological... (More)
Brazil is the only country that has managed to successfully implement an economically viable large-scale biofuel program. In 2008, locally produced ethanol derived from sugarcane replaced more than half of the domestic gasoline market, without the aid of any government subsidies. Ethanol in Brazil represents an economically lucrative industry that also contributes to national energy and environmental security. This industry, however, is not a recent development. The Brazilian ethanol system has developed gradually over the past 35 years, and is the result of concerted efforts by the government and other relevant industries. The price of ethanol has declined markedly since the inception of the program due to constant technological innovations. In 2004, ethanol production costs had declined by more than 71 percent to a point where subsidy-free prices at the pump were competitive with gasoline for the first time. Recent research has demonstrated increased cost efficiencies in sugarcane production have been the main driver of ethanol’s increased competitiveness, as it accounts for roughly 60 percent of final ethanol costs. Given (1.) the demonstrated benefits the system in Brazil, (2.) the reliance of this system on sugarcane and (3.) the cost efficiencies that have resulted from potentially transferable technology, this study aims to generally access the extent to which the Brazilian Ethanol Model can be replicated in other sugarcane-producing developing countries. (Less)
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author
Leyow, Luke LU
supervisor
organization
course
EKHR21 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Brazilian ethanol program, energy leapfrogging, technology transfer, developing countries, sugarcane, ethanol, biofuel, Brazil
publication/series
Lund University - Department of Economic History Master's Theses
language
English
id
2057426
date added to LUP
2011-09-19 13:30:08
date last changed
2011-09-19 13:30:08
@misc{2057426,
  abstract     = {{Brazil is the only country that has managed to successfully implement an economically viable large-scale biofuel program. In 2008, locally produced ethanol derived from sugarcane replaced more than half of the domestic gasoline market, without the aid of any government subsidies. Ethanol in Brazil represents an economically lucrative industry that also contributes to national energy and environmental security. This industry, however, is not a recent development. The Brazilian ethanol system has developed gradually over the past 35 years, and is the result of concerted efforts by the government and other relevant industries. The price of ethanol has declined markedly since the inception of the program due to constant technological innovations. In 2004, ethanol production costs had declined by more than 71 percent to a point where subsidy-free prices at the pump were competitive with gasoline for the first time. Recent research has demonstrated increased cost efficiencies in sugarcane production have been the main driver of ethanol’s increased competitiveness, as it accounts for roughly 60 percent of final ethanol costs. Given (1.) the demonstrated benefits the system in Brazil, (2.) the reliance of this system on sugarcane and (3.) the cost efficiencies that have resulted from potentially transferable technology, this study aims to generally access the extent to which the Brazilian Ethanol Model can be replicated in other sugarcane-producing developing countries.}},
  author       = {{Leyow, Luke}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{Lund University - Department of Economic History Master's Theses}},
  title        = {{The Replication of the Brazilian Ethanol Model in Developing Countries: A General Feasibility Assessment.}},
  year         = {{2011}},
}