Evaluation of Brazil’s Biodiesel Production and Use Program – PNPB

Abstract

This paper aims at evaluating Brazil’s Biodiesel Production and Use Program (PNPB) in the period of 2004–2010. The purpose of PNPB is to implement a biodiesel commodity chain in Brazil, aiming to reduce diesel imports, diversify oilseed plants, and generate employment and income for family farmers. Although this is a recent public policy, it is possible to compare the available data with the program’s main objectives. The production of biodiesel has grown since 2005, but still has failed to halt the growth of diesel imports in Brazil. The number of family farmers participating in the program is significant, and the South Region holds more than half of these farmers. Diversification of oilseed plants also left much to be desired. Soybean accounts for more than 90% of the acquisitions made at auction in 2010, so that the diversification desired by PNPB has not occurred. Therefore, although PNPB has made Brazil the second largest world producer of biodiesel, this public policy needs some adjustments.