How Relevant Has Been the Learning-by-Doing for Brazilian Sugarcane Ethanol Production?
Hector Nuñez ()
No DTE 552, Working papers from CIDE, División de Economía
This paper examines the role of several factors in reducing the production costs of Brazilian sugarcane ethanol, including learning-by-doing (LBD), economies of scale, rising factor prices, market competitiveness, and exogenous technological changes. Using the aggregate industry-level data over the period 1975- 2010, we find that the reduction in production costs of sugarcane ethanol was primarily driven by autonomous technological changes and unrelated to LBD. The increase in energy prices raised production costs of sugarcane ethanol, while the effects of other input prices on reducing production costs of sugarcane ethanol are found to be insignificant. By increasing the costs of procuring key inputs for ethanol production, market competitiveness had a negative effect on reducing production costs of sugarcane ethanol. The role of economies of scale in affecting sugarcane ethanol production costs is inconclusive depending on model specifications.
Keywords: Sugarcane ethanol, Production cost reductions, Learning-by-doing; Technological changes (search for similar items in EconPapers)
JEL-codes: O33 Q20 Q42 (search for similar items in EconPapers)
Pages: 22 pages
New Economics Papers: this item is included in nep-agr, nep-eff and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:emc:wpaper:dte552
Access Statistics for this paper
More papers in Working papers from CIDE, División de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Alfonso Miranda ().