Abstract
Initially an explanation is given for how the expert interviews were conducted and structured within this main empirical chapter. The strategy for identifying the experts that were interviewed is elaborated upon the evaluation of the recorded and transcribed interviews by applying qualitative data analysis software is explained followed by a presentation of the reasons for the success of sugarcane over decades and centuries and its significance for the Brazilian agriculture and rural areas. From the initial governmental program Pro-Álcool to the recent crisis of the sugarcane sector the last three decades are explained in more detail. Yet the main focus of Chap. 4 is the empirical analysis of the data compiled. The qualitative data is presented as statements from the expert interviews and then matched with insights, statistical and other data from the literature review. With reference to the innovation system approach there are five ‘physical’ technologies (mechanization; cogeneration; new technologies; second generation biofuels and genetically modified cultivars) that are analyzed in detail. An assessment of the ‘social’ technologies with a national and international perspective (institutions, strategies and politics; laws, regulations and enforcement; industrial cooperation; concentration and internationalization; certification and market demand) follows. Subsequently these technologies and innovations and their interdependencies are evaluated in order to understand whether the sugarcane complex can be classified as an innovation system. The chapter concludes with analysis of the impacts of innovation on ecological, economic and social aspects in order to cover the multi-dimensionality of sustainability.
Brazil’s ethanol and other biofuels are produced in ever-improving conditions
Luiz Inácio Lula da Silva, 64th UN General Assembly, New York, 23 September 2009.
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Notes
- 1.
Another Portuguese term which seems more precise than the English wording is usina which refers to the production plant where sugar, ethanol, electricity and other byproducts are produced. The owner of the usina and thus often the proprietor of the sugarcane is referred to as the usineiro. These are two other Portuguese terms that will be referred to subsequently in the text.
- 2.
Prices and numbers indicated in the text and that were given in R$ are converted into US$ for reasons of comparability. The applied exchange rates are listed in Table on page v.
- 3.
According to Fleischer (2014), Central-South Brazil experienced the smallest rainfalls in January 2014 in these regions since 1954. This constitutes a very difficult situation for electricity energy generation. The lack of rainfall has depleted water levels of the main hydropower facilities to such an extent that all thermo-electric capacity (natural gas, fossil oil, biomass, etc.) has been activated. Furthermore, another 5,000 MW was required to be provided by the Tucuruí hydropower station in Pará. But, the outdated transmission lines resulted in a blackout of up to two hours in the Central-South regions, affecting up to 12 million people in 11 states.
Fleischer (2014) additionally states that it is highly possible that Brazil faces massive blackouts in May, June, and July as happened in 2001 if rainfall does not increase during the “summer rain” months (February, March and April). Concern is expressed that such a disaster might coincide with the World Cup finals in June and July 2014.
- 4.
Nevertheless, some critics indicate that the commercialization of university science threatens the distinct culture, in particular the incentive system of universities which in return shifts the focus of basic research. However, this aspect is not pursued within the context of industrial cooperation and innovation systems and it is not further discussed here.
- 5.
Globally, the four largest traders of and investors in agricultural commodities are Archer Daniels Midland (ADM), Bunge, Cargill (all three US American based companies) and Louis Dreyfus (French). Collectively, they are known as the ‘ABCD’ cartel or traders and control, for instance, as much as 90 % of the global grain trade, according to Murphy et al. (2012).
- 6.
The ‘Cerrado’ is a vast savanna ecoregion and Brazil’s second largest biome after the Amazon rain forest. The ‘Cerrado’ accounts for more than 20 % of the country’s area and can be found particularly within the Center-West and South-West regions of Brazil.
- 7.
The definition of degraded land and degraded pasture is contested and ambiguous. The definition of the UNEP/FAO/GEF Project “Land Degradation Assessment in Drylands (LADA)” is “the reduction in the capacity of the land to provide ecosystem goods and services and assure its functions over a period of time for its beneficiaries” (Kellner et al. 2011). Nevertheless, degraded land and degraded pasture can be in utilization.
- 8.
Apart from the direct emissions, the production of sugar and ethanol often results in high water consumption and the cultivation of large-scale sugarcane monocultures which leads to a pollution of soil and of surface and underground water caused primarily by the application of pesticides and fertilizer that also have a negative impact on the GHG balance of sugarcane ethanol (Azadi et al. 2012). According to Carneiro et al. (2012), the global market for pesticides increased by over 90 % over the last ten years while the Brazilian market grew 190 % within the same period. In 2008, Brazil surpassed the US and became the largest market for pesticides worldwide. In 2011, over 40 % of all purchases in pesticides are coming from the soy bean sector while cotton ranks second with 12.5 %. The sugarcane complex ranks third and buys 11.6 % of all pesticides in Brazil according to the Instituto de Economia Agrícola (2012).
- 9.
Nevertheless, according to Pacini and Silveira (2011), consumers in Brazil do not react as strongly as in other countries to price increases and are more likely to buy ethanol instead of gasoline even when gasoline prices are more favorable. A possible explanation might be that historically ethanol has often been the more advantageous fuel for them.
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Kaup, F. (2015). Empirical Research—setor sucroenergético in Brazil—From the Experts’ Mouths. In: The Sugarcane Complex in Brazil. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-16583-7_4
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