The Biofuel Industry Concentration in Brazil Between 2005 and 2012

Chapter
Part of the Lecture Notes in Energy book series (LNEN, volume 27)

Abstract

Biofuel has come up as an important alternative to diversifying the global energy matrix, with economic, social, and environmental impact. Currently, Brazil is the main supplier and one of the top consumers of biofuels in the world, and has prioritized the use of soy as a raw material for the biofuel industry, as well as the sugarcane for producing ethanol; both industries use more than 8 million hectares of cropped land and employ over 1 million people every year. Considering the importance of this subject for the energy matrix and Brazilian economy, we sought to analyze the concentration level for each one of these industries, as well as its impact in pricing. The results point to a low concentration of the biodiesel market, where its production is centralized in four Brazilian states: Goiás, Mato Grosso, Rio Grande do Sul, and São Paulo. This low concentration implies high competitiveness and homogenous average prices in the last couple of years (2011 and 2012), for companies holding 80 % of the market, as well as other firms in this industry. On the other hand, the industrial concentration level of the ethanol distribution channels has significantly grown, thus implying a significant and positive correlation between the increase of concentration and the increase of the contribution margin in this industry.

Keywords

Biofuel Biodiesel Ethanol Industry concentration 

References

  1. ANP (2012) Agência nacional do petróleo. Boletim mensal de biodiesel—Setembro de 2010. http://www.anp.gov.br/?dw=62808. Retrieved 2012/11/10
  2. ANP (2013a) Agência nacional do petróleo. Entregas de biodiesel das unidades produtoras em referentes aos leilões ANP. http://www.anp.gov.br/?dw=65139. Retrieved 2013/02/10
  3. ANP (2013b) Agência nacional do petróleo. Produção de etanol anidro, segundo grandes regiões e unidades da Federação—2003–2012. http://www.anp.gov.br/?dw=67012. Retrieved 2013/02/10
  4. ANP (2013c). Agência nacional do petróleo. Anuário Estatístico Brasileiro do Petróleo, Gás Natural e Biocombustíveis.Rio de Janeiro: ANPGoogle Scholar
  5. Bain JS, Qualls PD (1968) Industrial organization. Wiley, New YorkGoogle Scholar
  6. Beiral P (2011) O mercado brasileiro de etanol: concentração e poder de mercado sob a ótica da Nova Organização Industrial Empírica. Dissertação (Mestrado). Escola Superior de Agricultura Luiz de Queiroz, Universidade de São Paulo, Piracicaba, p 111Google Scholar
  7. CONAB (2013) Companhia Nacional de Abastecimento. http://www.conab.gov.br/OlalaCMS/uploads/arquivos/13_03_07_10_39_19_levantamento_safras_graos_6.pdf. Retrieved 2013/05/10
  8. De Jong HW, Shepherd WG (2007) Pioneers of industrial organization: how the economics of competition and monopoly took shape. Edward Elgar PublishingGoogle Scholar
  9. George KD, Joll C (1983) Organização industrial: concorrência, crescimento e mudança estrutural. Rio de JaneiroGoogle Scholar
  10. Ipeadata I (2012) Ipeadata. Institute for Applied Economic Research (IPEA). http://www.ipeadata.gov.br/. Retrieved 2012/11/10
  11. Jacquemin A, Slade ME (1986). Cartels, collusion, and horizontal merger. In: Schmalensee R and Willig RD (eds) Handbook of industrial organization, vol: IGoogle Scholar
  12. Lopes H, Masiero G (2008) Etanol e biodiesel como recursos energéticos alternativos: perspectivas da América Latina e da Ásia. Revista Brasileira de Política Internacional, Brasília 51(2)Google Scholar
  13. MA Ministério da Agricultura (2009) Instrução Normativa N 52. http://www.agricultura.gov.br/arq_editor/file/Instrucao_Normativa_52.pdf. Retrieved 2013/02/02
  14. MME Ministério de Minas e Energia (2010) Boletim mensal dos combustíveis renováveis. http://www.mme.gov.br/spg/galerias/arquivos/publicacoes/boletim_mensal_combustiveis_renovaveis/Boletim_DCR_nx_035_-_novembro_de_2010.pdf. Retrieved 2012/12/12
  15. MME Ministério de Minas e Energia (2012) Boletim mensal dos conbustíveis renováveis. http://www.mme.gov.br/spg/galerias/arquivos/publicacoes/boletim_mensal_combustiveis_renovaveis/Boletim_DCR_nx_058_-_novembro_de_2012.pdf. Retrieved 2012/12/12
  16. Peltzman S (1977) The gains and losses from industrial concentration. National Bureau of Economic Research Cambridge, Mass, USAGoogle Scholar
  17. Possas ML (1985) Estruturas de mercado em oligopólio. Hucitec, São PauloGoogle Scholar
  18. Senauer B (2008) Food market effects of a global resource shift toward bioenergy. Am J Agric Econ 90(5):1226–1232CrossRefGoogle Scholar
  19. UNICA (2013). União da Indústria de Cana-de-Açúcar. Cana-de-açúcar no Brasil. http://www.unica.com.br/. Retrieved 2013/02/02
  20. USDOJ (1997) The hirschman—herfindahl index in horizontal merger guidelines (1559)Google Scholar
  21. US Federal Trade Commission (2012) 2011 report on ethanol market concentration. http://www.ftc.gov/os/2011/12/111213ethanolreport.pdf. Retrieved 2012/10/10
  22. Wetzstein M, Wetzstein H (2011) Four myths surrounding US biofuels. Energy Policy 39(7):4308–4312CrossRefGoogle Scholar
  23. Zhang Z, Lohr L, Escalante C, Wetzstein M (2009) Ethanol, corn, and soybean price relations in a volatile vehicle-fuels market. Energies 2(2):320–339CrossRefGoogle Scholar
  24. Zhang Z, Lohr L, Escalante C, Wetzstein M (2010) Food versus fuel: what do prices tell us? Energy Policy 38(1):445–451CrossRefGoogle Scholar

Copyright information

© Springer-Verlag London 2014

Authors and Affiliations

  1. 1.Federal University of PelotasPelotasBrazil

Personalised recommendations