ABSTRACT
It is widely accepted that energy is a critical input for economic and social development (WEA 2000). Energy is used in every sector of human activity and energy consumption increases strongly in line with economic growth. Unsurprisingly, reliability of energy supply is a key objective of development policy. Shortages in the supply of energy, such as those experienced by the Brazilian economy in 1974 and 1978 (oil), 1990/1991 (ethanol) and 2001 (electricity), have a strongly attenuating impact on economic growth.
