Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1613
Among the original guidelines of the National Program of Biodiesel Production and Use (PNPB), created by Brazilian Government in 2003, some practices of social inclusion and regional development were included. This was done by reducing the rate of PIS/PASEP and Cofins taxes for those biodiesel producers that withhold the Social Fuel Seal. The aim of this study was to analyze what impact the PNPB had on the production of feedstock for biodiesel made by farmers in North and Northeast regions. It aims to assess whether the reduction in rates from PIS/PASEP and Cofins of biodiesel plants that buy castor oil and palm oil in the North and Northeast resulted in a significant stimulus to agricultural production in these two regions. The analysis performed found that there was only a small participation of Brazil's North and Northeast regions in the biodiesel production, which is a significant indication of the mismatch between the original guidelines of the PNPB and what actually happens five years after the creation of this Program.