Biobased economy for Brazil: Impacts and strategies for maximizing socioeconomic benefits

P.G. Machado, M. Cunha, A. Walter, A. Faaij and Joaquim Guilhoto

Renewable and Sustainable Energy Reviews, 2021, vol. 139, issue C

Abstract: Fossil fuels dominate the current energy and chemicals' supply and this leads to a rapid growth in global greenhouse gas emissions. One mitigation option is using renewable feedstock for materials, chemicals (ethylene, propylene, acrylic acid and butanol) and, mostly, energy carriers (biodiesel, renewable jet fuel, ethanol and bioelectricity). This study demonstrates the effects of an economy based on biomass (bioeconomy) on macroeconomic aspects through a Computable General Equilibrium model. Three scenarios for 2030 were created to compare different levels of production (amount of chemicals and energy production through fossils versus biomass) for Brazil, based on sugarcane, soy and forest crops. Two important methodological aspects of this paper are the financial support provided by the government to enable the bioeconomy, and the limitations in land use established by the needs to reduce emissions. Overall, the results show that a bioeconomy could result in almost irrelevant negative impacts on GDP and in small increases in unemployment rate comparing to the reference scenario. However, these effects could be reversed, even with no deforestation, if the livestock and agriculture sectors increased their efficiency regarding land. Most importantly, if the livestock sector worked as a source of land for other crops in the event of a bioeconomy, the socioeconomic response would be more positive than if deforestation took place.

Keywords: Biomass; Bioenergy; Biomaterials; Macroeconomics; Computable general equilibrium model; Land use; Brazil (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032120308583
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:rensus:v:139:y:2021:i:c:s1364032120308583

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2020.110573

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().