Advances in Economics and Business Vol. 5(8), pp. 476 - 486
DOI: 10.13189/aeb.2017.050806
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Biodiesel Production, Soybean Cultivation and Family Agriculture: Evaluation of Brazilian Experience


Jefferson N. do Pradoy 1,2,*, Flávia Chein 3, Juliano J. Assunção 4
1 PPGEA, Federal University of Juiz de Fora, Brazil
2 Mackenzie Presbiterian University, Brazil
3 Department of Economics, Federal University of Juiz de Fora, Brazil
4 Department of Economics and Climate Policy Initiative, Pontifical Catholic University of Rio de Janeiro (PUC-Rio), Brazil

ABSTRACT

We analyzed the impact of the National Program for Production and Use of Biodiesel (PNPB) over some soybean variables such as productivity, price received and wages paid among soybean family farming units in Brazil (from 2003-2012). The empirical strategy includes first identified "poles" of biodiesel production, and then uses a difference in differences model to estimate effects over time between soybean producing municipalities considered as a PNPB biodiesel production pole (treatment) and other soybean producing municipalities (control) not producing biodiesel. The results indicate that PNPB does not appear to be closely related to soybean productivity changes. However, the PNPB appears to be positively associated with average incomes and wages, suggesting that the PNPB may have helped support rural economic development in municipalities with strong social seal participation.

KEYWORDS
Biodiesel, National Production and Use of Biodiesel Program, Family Agriculture, Agricultural Productivity

Cite this paper
Jefferson N. do Pradoy , Flávia Chein , Juliano J. Assunção . "Biodiesel Production, Soybean Cultivation and Family Agriculture: Evaluation of Brazilian Experience." Advances in Economics and Business 5.8 (2017) 476 - 486. doi: 10.13189/aeb.2017.050806.