Socioeconomic impacts of the biodiesel production chain on family agriculture in the Brazilian states of Rio Grande do Sul (RS) and Mato Grosso (MT)

Abstract

This paper evaluates the different socioeconomic impacts of the biodiesel sector on family farming and other sectors of the economy of the states of Rio Grande do Sul and Mato Grosso, which are the largest biodiesel producers in Brazil and have structural and regional differences. The Input-Output Theory was the methodology used to measure the direct and indirect effects on the jobs generated and on the Gross Domestic Product (GDP). The research shows that the production of biodiesel via family farming in Rio Grande do Sul is 66 times that of Mato Grosso, generating approximately 19,000 jobs, which is explained by the greater development of the agricultural sector in Rio Grande do Sul. Compared to fossil diesel, one million barrels of oil equivalent of family biodiesel in Rio Grande do Sul generates 7,700 jobs, while the fossil route generates 1,600 jobs.