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Macro-environment analysis of the corn ethanol fuel development in Brazil

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  • Silva, Anderson Luís da
  • Castañeda-Ayarza, Juan Arturo

Abstract

In Brazil, the excess in corn production and the possibility to integrate it with sugarcane for the production of ethanol making use of the productive structure already available demonstrated a certain degree of feasibility in the utilization of corn kernel to increase the national production. Thus, this article proposed to analyze the potential opportunities and threats offered by the macro-environment for corn ethanol development in Brazil. The results show that the political and legal segments present more threats, while the economic segment presents the most significant opportunities. The environmental segment can also jeopardize corn ethanol opportunities, influenced by the country's current policy. Lastly, given the potential threats and opportunities encountered, corn ethanol was considered viable to complement sugarcane ethanol. Corn ethanol is a good alternative for reducing operational idleness during the inter-harvest sugarcane harvest and minimizing storage problems and collaborating with the region's producers in marketing in a less costly manner and with a higher profit margin. Finally, it was possible to show the current conditions of the macro-environment for the production of corn ethanol in Brazil and the importance of strategic analysis of the macro-environment.

Suggested Citation

  • Silva, Anderson Luís da & Castañeda-Ayarza, Juan Arturo, 2021. "Macro-environment analysis of the corn ethanol fuel development in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:rensus:v:135:y:2021:i:c:s1364032120306754
    DOI: 10.1016/j.rser.2020.110387
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    References listed on IDEAS

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