ABSTRACT: This study aims to analyze the relationship of path dependence in economic and institutional system of ethanol in Brazil. As a result, the ethanol, after stages of growth and challenges, has become part of the Brazilian energy matrix. This means that a route (path) was chosen, with performance of institutions (mills and distilleries, sector of machinery and equipment for construction mills and distilleries, automotive industry, State, corporatist organizations, R&D) and economic agents (consumers) interested, directly or indirectly, in the maintenance of the route chosen. The “interest arrangements” supported the Brazilian ethanol as the most appropriate energy option for the replacement of gasoline/diesel.
Key words: ethanol, sugarcane, path dependence, Brazilian production.
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