Energy development potential: An analysis of Brazil

This paper develops an indicator for the energy development potential (EDP) of 27 Brazilian states. This indicator uses data on a state's infrastructure and its supply of and demand for energy. The indicator measures the data for three periods: the first part of the 1990s, which is a period of low economic growth; the first part of the 2000s, which is a period of high economic growth but with a historical crisis in the Brazilian energy sector; and 2009-2011, which is a period of economic growth after the energy crisis. Using a factor analysis, we are able to identify three factors for EDP. They are the demand for energy, the supply of renewable energy, and the supply of nonrenewable energy. We use these factors to classify the Brazilian states according to their EDP and to perform an exploratory spatial data analysis (ESDA) by using the Moran indicators and the local indicators of spatial association (LISA).