Palma Silvia, Caldeira-Pires Armando* and Nogueira Jorge
The increase of global biofuel production is supported mainly by energetic policies adopted by important energy markets that aim to promote the production and use of biofuels, including the promising cellulosic-derived biofuels. Brazil is facing a challenge to attain sustainability in ethanol sector and to maintain its position as a major supplier of ethanol to world market in this new era of sustainable biofuel policies. In this paper we carried out a structural path analysis on sugarcane-derived ethanol sector and on a hypothetical bagasse-derived ethanol sector in order to identify the input paths that most influencing their economic and environmental performance. We make an empirical application to the Brazilian economy, using existing data from ethanol sector for 2005 and estimating data for the hypothetical sector. The fuel burned in the transport sector and on-site transport tasks is identified as important element for the environmental performance of both sectors. Also, sugarcane sector is identified to have relevant role in the economic performance of ethanol sector, as enzyme production has in second generation ethanol sector. The results present in this article can provide valuable information for decision-making in both biofuels to address new initiative for effective economic and environmental policies efforts.
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