Energy-intensity trends in Brazil

Abstract

Energy has had a substantial impact on the Brazilian economy during the past 20 yr. Oil accounted for more than 40% of Brazil's total import bill, which was equivalent to nearly 50% of export revenues during the early 1980s. A negative balance of payments due in part to costly oil imports led to mounting foreign debt, which in turn severely limited economic growth and investment during the 1980s. At the beginning of the 1990s, the foreign debt stands at about $115 billion or one-third of Brazil's annual gross domestic product and threatens to continue to drain economic resources from the country. This paper reviews national and sectoral energy-intensity trends since 1973. The reasons for changes in energy intensity are examined, including both technical and political-economic factors. In the conclusion of the paper, suggestions are provided concerning how Brazil can increase energy productivity and lessen adverse impacts caused by growth in energy use in the future. -from Authors