Abstract
Beginning in the 1990s, the fiscal crisis in Brazil and the consequent distancing of the federal government from the economy, the change from a markedly authoritarian, the bureaucratic regime to democratic rule, as well as the strengthening of Congress after the adoption of the Federal Constitution of 1988, significantly altered the roles of the players involved in determining public policy. The power resources of those players also shifted.
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In 1999, there were no flex-fuel automobiles, and hydrous ethanol was used only in the existing fleet of automobiles powered exclusively by ethanol, sales of which were virtually nonexistent at that time.
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Agriculture, Finance, Mines and Energy, Science and Technology, Budget, Transportation, Development, Environment, and Foreign Affairs.
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According to Provisional Measure no. 102: “… considering the need to conduct a broad analysis of the sugarcane ethanol industry, as decided by the [CIMA], aimed at identifying and correcting structural imbalances in the industry; considering the current existence of carryover stocks of fuel ethanol that could exert price pressure and thus affect earnings and employment in the industry; considering the need to set rules or standards for the marketing of fuel ethanol, prior to the full lifting of price controls; and considering the need to deepen discussions on the marketing of sugarcane in a deregulated environment, it is resolved that…”.
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Among the instruments available to legislators to exert pressure on those involved in determining public policies are public hearings, which can be called by the various existing committees (on economics, labor, justice, etc.), in which those summoned are required to appear and provide the requested clarifications.
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As outlined in Santos (1993), in a period of 8 months there were two inversions in the demand profile: in September of 1980, gasoline-powered automobiles accounted for 66 % of all automobilesales; 3 months later, ethanol-powered automobiles represented 76 % of total sales; and 5 months after that, in May of 1981, gasoline-powered automobiles again accounted for the majority of sales (71 %).
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Ferraz Dias de Moraes, M., Zilberman, D. (2014). Political Determinants of the Decision-Making Processes: The Players, their Power Resources, and the Redefinition of their Roles in the New Institutional Environment. In: Production of Ethanol from Sugarcane in Brazil. Natural Resource Management and Policy, vol 43. Springer, Cham. https://doi.org/10.1007/978-3-319-03140-8_13
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DOI: https://doi.org/10.1007/978-3-319-03140-8_13
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