Sugarcane industry's socioeconomic impact in São Paulo, Brazil: A spatial dynamic panel approach

Leandro Gilio and Márcia Azanha Ferraz Dias de Moraes

Energy Economics, 2016, vol. 58, issue C, 27-37

Abstract: This study assesses the socioeconomic development impacts of the recent sugarcane industry expansion on municipalities in the Brazilian state of São Paulo over seven years, from 2005 through 2011. It was used as socioeconomic development indicator the Index of Municipal Development (IFDM), provided by the Federation of the State of Rio de Janeiro Industries (FIRJAN). A dynamic spatial panel model was built using the System Generalized Method of Moments (GMM-SYS) to assess the impacts of the sugarcane industry, caused by the expansion of both the cultivated area and the presence of ethanol and sugar processing plants. We found that the presence of a processing plant has a positive effect in the socioeconomic development of the municipality where the plant is located and in neighboring municipalities. Besides, we found a small negative relationship between increases in the amount of area devoted to sugarcane cultivation in a municipality and the IFDM value for that municipality, which can be explained by job losses in the farming sector, most likely by the recent mechanization process of sugarcane harvesting.

Keywords: Bioenergy; Sugarcane; Ethanol; Social impacts; Spatial dynamic panel (search for similar items in EconPapers)
JEL-codes: C20 C23 C51 Q42 R12 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988316301402
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:58:y:2016:i:c:p:27-37

DOI: 10.1016/j.eneco.2016.06.005

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().