Economic impacts of fossil fuels substitution by ethanol and biodiesel in the Brazilian economy in the period 2010 to 2030

This study aimed to analyze the impacts on the Brazilian economy of the expansion in the production and use of ethanol and biodiesel in substitution of part of fossil fuels between 2010 and 2030, based on the Plano Nacional de Energia - PNE 2030. Of particular interest was the analysis of regional impacts as well as of greenhouse gases emissions. A Computable General Equilibrium model of the Brazilian economy was used for this purpose. The model is static, inter-regional and bottom-up. Results showed that the impacts generated by the biofuels policies generate increases in the macroeconomic aggregates in the economy, especially in the case of the biodiesel policy, and are relevant from a greenhouse gases emissions standpoint. Reductions in the emissions associated to the main fossil fuels of the Brazilian energy matrix were observed. The study concludes that the policy of gradual insertion of biofuels in the Brazilian economy can generate both economic and environmental positive effects. (AU)