Abstract

In 1981, the Brazilian government created CONSERVE, a program designed to provide low-interest loans to industrial firms for investments in oil conservation and/or substitution. Now, several years later, it is becoming clear that this program has not lived up to its expectations. This project assesses the role and impact of CONSERVE. Researchers will identify and analyze the factors that have discouraged entrepreneurs from taking advantage of the opportunities offered by CONSERVE; determine the magnitude of efforts at energy conservation made by entrepreneurs outside CONSERVE; and suggest ways of improving the effectiveness of a government program of this kind.

Post-Project Summary

This project focused on an appraisal of CONSERVE, a government program that provided loans to national enterprises for investments which would lead to more efficient energy use. Researchers reviewed existing literature, and analyzed data from a questionnaire sent out to firms that had applied for, but had not used, loans. It was noted that program performance was poor, with a drop-out rate of about 50%. Data pertained to firm size and strategies; market behaviour; opinions about CONSERVE; and suggestions for program improvement. Based on questionnaire responses, researchers identified factors accounting for the program's poor performance. The most important change desired was an improvement in availability of program information and in program administrative procedures. Researchers recommended the need for more effective ways to establish a sustainable energy policy; and more diversity in energy efficient programs. Research results were presented at conferences in Massachusetts, USA; Alberta, Canada; Rio de Janeiro, Brazil; and at a seminar at IDRC. As well, findings were published in a Brazilian newspaper article. A project researcher was supported for travel to India for meetings. Subsequently, an Indo-Brazilian exchange of scholars was set up.

Recipient Institution(s)