O PAPEL DA CANA-DE-AÇÚCAR NO DESENVOLVIMENTO ECONÔMICO

This executive summary describes a study by the Climate Policy Initiative and PUC-Rio on the economic and environmental impacts of sugarcane mill expansion in Mato Grosso do Sul, Brazil. The findings indicate that the arrival of these mills significantly restructured local municipal economies, increasing GDP, population, and tax revenues while shifting land use from pasture to sugarcane and reducing deforestation.

• The installation of sugarcane mills led to a profound restructuring of municipal economies in rural areas. Within a three-year period following the arrival of the mills, there was an average increase of 30% in GDP, driven by growth in agriculture (65%), industry (45%), and services (13%). Additionally, these mills caused a 10% increase in population and a 31% rise in tax revenues.
• Sugarcane expansion in Mato Grosso do Sul induced a change in land use, primarily replacing cattle pastures with sugarcane cultivation. This shift was evidenced by an average reduction of 27,000 head of cattle in municipalities that received new mills, alongside a decrease in employment within the livestock sector.
• The presence of sugarcane mills contributed to increased productivity for other crops, such as soy and corn, by improving the supply of agricultural inputs and services, including transport and storage. This growth was further supported by increased agricultural investments resulting from higher producer incomes via land leasing, sugarcane sales, and better access to rural credit.
• Deforestation decreased by an average of 6,300 hectares three years after the installation of the mills. The study suggests this may be due to productivity gains reducing the need for new land or increased oversight and legal compliance because the mills are often owned by large companies subject to investor and media scrutiny.
• The expansion of the sugarcane industry stimulated the local labor market and financial services. The number of jobs increased by 40%, and aggregate salaries grew by 49%. On average, 186 new companies were created per municipality, representing an 82% expansion. In terms of finance, private deposits rose by R$ 4.8 million (103%) and rural credit for investments, expenses, and commercialization increased by R$ 18.5 million (77%).

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} }