Sustainable Efficiency of Sugarcane Mills in the State of Sao Paulo: A Data Envelopment Analysis

Abstract

The pursuit of greater competitiveness and efficiency today goes hand in hand with concerns directly linked to sustainable development. The traditional sugar-energy sector, with a strong influence on the economy since colonial Brazilian periods, not only played a pioneering role in replacing fossil fuel with renewable resources but is also characterized by substantial production-related differences. The Brazil is currently the largest global producer of sugarcane, and the state of São Paulo, in southeastern Brazil, leads this production. The objective of this research was to analyze the sustainable efficiency of sugarcane mills in the state of São Paulo, through Data Envelopment Analysis (DEA). For this, the work was based on the Triple Bottom Line, considering environmental, economic and social approaches to the performance of the mills. Regarding the main results, it was possible to notice that the production scale factor favored large mills in some points of analysis, while at other times, small mills were highlighted.