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The expansion of sugarcane plants in Mato Grosso do Sul between 2005 and 2012 led to significant local economic growth, including a 30% average increase in municipal GDP over three years. The study finds that this growth was accompanied by a shift in land use from pasture to sugarcane, increased productivity in other crops like soy and corn, a reduction in deforestation by an average of 6.3 thousand hectares, and substantial growth in local employment and financial services.

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  • The establishment of sugarcane plants caused a profound restructuring of municipal economies in rural areas, resulting in an average GDP increase of 30% over a three-year period. This growth was driven by gains in agriculture (65%), industry (45%), and services (13%), while also triggering a 10% increase in population and a 31% rise in tax revenues.
  • Sugarcane expansion induced a change in land use, primarily replacing cattle pastures with sugarcane cultivation. This shift is evidenced by an average reduction of 27,000 head of cattle in municipalities that received new plants, alongside a decrease in employment within the livestock sector.
  • Deforestation decreased by an average of 6.3 thousand hectares three years after the installation of the plants. The study suggests this may be due to productivity gains reducing the need for new land or improved legal compliance and oversight associated with the large companies operating the plants.
  • The local labor market and financial infrastructure expanded significantly. The number of jobs increased by 40%, aggregate salaries grew by 49%, and the number of companies per municipality expanded by 82% (an average of 186 new companies). Additionally, private deposits rose by R$ 4.8 million (103%) and rural credit for investment and commercialization increased by R$ 18.5 million (77%).

Cite the original document

APA
Assunção, J., Pietracci, B., & Souza, P. (2016). O PAPEL DA CANA-DE-AÇÚCAR NO DESENVOLVIMENTO ECONÔMICO. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/07/Sumarios_O_papel_da_cana_de_acucar_no_desenvolvimento_economico-1-1.pdf
Chicago
Assunção, Juliano, Breno Pietracci, and Priscila Souza. O PAPEL DA CANA-DE-AÇÚCAR NO DESENVOLVIMENTO ECONÔMICO. Climate Policy Initiative, 2016. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/07/Sumarios_O_papel_da_cana_de_acucar_no_desenvolvimento_economico-1-1.pdf.
Wikipedia
{{cite report |last1=Assunção |first1=Juliano |last2=Pietracci |first2=Breno |last3=Souza |first3=Priscila |title=O PAPEL DA CANA-DE-AÇÚCAR NO DESENVOLVIMENTO ECONÔMICO |publisher=Climate Policy Initiative |date=July 2016 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2016/07/Sumarios_O_papel_da_cana_de_acucar_no_desenvolvimento_economico-1-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{assuno2016papel, author = {Assunção, Juliano and Pietracci, Breno and Souza, Priscila}, title = {{O PAPEL DA CANA-DE-AÇÚCAR NO DESENVOLVIMENTO ECONÔMICO}}, institution = {Climate Policy Initiative}, year = {2016}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2016/07/Sumarios_O_papel_da_cana_de_acucar_no_desenvolvimento_economico-1-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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