Over the next few years, the Brazilian government will roll out a large spending package to address chronic problems in the nation\u2019s infrastructure. A new Climate Policy Initiative \/ PUC-Rio report identifies a key solution that policymakers should consider: Addressing inefficiencies in road, railway, and port regulation could yield large gains in infrastructure improvements and agriculture productivity.<\/p>\n
Since the late 1990s, the regulatory environment of Brazil\u2019s infrastructure has been in continuous flux, creating uncertainty in the marketplace. While the regulations have changed in different ways, the general trend has been clear, with restrictions that have prevented existing infrastructure concessionaires from making long-term profits on their investments and provisions that have aimed to incentivize private investment through hidden subsidies.<\/p>\n
This shifting mix of incentives for private infrastructure investors has had dramatic, and mainly detrimental, effects on the natural dynamics of the marketplace. It has diminished the viability of infrastructure investments and led to the erosion of the infrastructure\u2019s overall quality. Brazil now ranks far behind geographically similar nations in infrastructure quality. This inefficiency costs the nation time, reduces returns on agricultural production, and slows overall growth.<\/strong><\/p>\n Previous CPI\/PUC-Rio analysis shows that carrying a ton of soybean from one of Brazil\u2019s leading soybean production municipalities to its point of export is almost three times as expensive as it is to carry the same amount of soybean over a similar distance in the United States. In addition, a lack of adequate roads keeps much of Brazil\u2019s production from being exported from its most cost-effective ports – in some cases, this represents a near twentyfold increase in costs.<\/p>\n This brief identifies key inefficiencies for the highway, rail and port sectors, and outlines solutions that can improve agricultural productivity in Brazil by way of improving these sectors.<\/p>\n If there seems to be general agreement that transport infrastructure is lacking, what is the hurdle that prevents investment? In this paper, INPUT researchers at Climate Policy Initiative in Brazil investigate how the regulation of this market may be to blame. <\/p>\n","protected":false},"author":33,"featured_media":7708,"template":"","format":"standard","meta":{"_acf_changed":false},"programs":[725],"regions":[353,518],"topics":[1198,941,481,1172,585],"collaborations":[],"class_list":["post-7634","cpi_publications","type-cpi_publications","status-publish","format-standard","has-post-thumbnail","hentry","programs-brazil","regions-brazil","regions-developing-economies","topics-climate-law-and-governance","topics-infrastructure","topics-land-use","topics-sustainable-agriculture","topics-transportation"],"acf":[],"yoast_head":"\nKEY RESEARCH FINDINGS<\/h5>\n
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