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Regional competitiveness of alcohol production in Brazil

Conference ·
OSTI ID:5821528
The potential impact of the alcohol plan on the agricultural sector is assessed. Special emphasis is given to regional production and use of alcohol and to the expected impact on rural employment and income. A vertically integrated and regionally competitive linear programming model is used to determine potential adjustments in the agricultural sector. Several agricultural regions are studied. They include a modern, competitive, large farm agricultural area near a major fuel consumption center (Sao Paulo), a traditional small farm, labor surplus area with no major fuel consumption center (Santa Catarina), and a mixed small and large farm region with a regional fuel consumption center (Rio Grande do Sul). The production regions are allowed to compete for both regional and central alcohol markets to determine the impact of energy crop production over a wide range of production and use conditions. Two policy situations are studied. The first incorporates the present market intervention policies which are used to support the alcohol plan. The second assumes a free energy market. The free market analysis is used to determine the true competitive price for energy crops. Labor value is a critical factor in determining the competitive position of regional production areas. This is given special emphasis.
Research Organization:
Ohio State Univ., Columbus (USA)
OSTI ID:
5821528
Report Number(s):
CONF-7904184-1; ON: DE82901915
Country of Publication:
United States
Language:
English