Regulation and Public Policies in the Construction

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CHIAVENATO, I. (1993): Introdução à Teoria Geral da Administração. ... «http://www.biodiesel.gov.br/docs/congressso2006/agricultura/GestaoConhecimento.pdf» [Consultado ... MATTOS, P. T. L. (2006): A Formação do Estado Regulador.
Regulation and Public Policies in the Construction of the Sustainable Energetic Matrix

Manoel Gonçalves Rodrigues Urban Observatory , State University of Rio de Janeiro The Rio de Janeiro City, Brasil Tel: 55 21 27612205 E-mail: [email protected]

Fernando José Pereira da Costa Department of Applied Economics, University of Santiago de Compostela The Santiago of Compostela City, Spain Tel:351 2 27710531 E-mail: [email protected]

Abstract Regulation, while theoretical-conceptual propose, is deeply linked to the liberal and neoliberal concept of State, where this is considered with an ever decreasing number of roles, remarkably concerning the entrepreneur State. Thus, in the liberal and neoliberal concept of State, the model of State minimum, through which the State should regard to the following roles: security, justice and police. With this, the intervening position of the State, typical of Keynesianism and Developmentalism is invalidated. However, even though generated in the scope of the liberal and neoliberal construct, the idea of regulation may come to be tied to new conceptual outlines in terms of strategy and planning. Due to it, regulation can become an important support to the public policies´ elaboration/implementation, aiming to act on sectors/segments objects of those policies. Such seems to be justifiable nowadays, where transition between the Fossil Fuels Paradigm and the Renewable Energy Sources Paradigm is lived, in which the construction of the Sustainable Energetic Matrix assumes an extremely relevant role, leading to positive impacts on environment and to a higher quality of life resulted from this aspect. Key words: regulation, public policies and energetic matrix

Introduction The new concept of regulation appears intimately linked to the liberal/neoliberal concept. The concept of regulation (or neoregulation) replaces the traditional concept of regulation, that is, the regulation which translate the state intervention, mainly in economy. Thus, the definition of regulation/neoregulation, while theoretical-conceptual propose, it is deeply linked to the liberal/neoliberal concept of State, where this starts to assume an ever decreasing number of roles/initiatives, remarkably concerning the business role. Thus, under the aegis of liberal/neo-liberal conception of State, points to the State minimum. For this, the State should stick to a limited number of activities (namely: security, justice and police). Thus, the minimum State would relegate the intervening Status to the status of theoretical-conceptual construct already exceeded, but also to the vision of regulation related to the intervening-state concept. However, even though generated in the scope of the liberal/neoliberal concept, the idea of regulation (in a restrict concept) may come to interact systemically/synergistic with new theoretical configurations in terms of strategy and planning.

The New Regulation Due to the liberal/neoliberal mainstream by through nations are guided and whose grade of intensity, in terms of adoption/regulation, varies according to the context, the regulation, hereby considered in its new concept, might come to perform as one of the most important bases concerning the format, elaboration and implementation of public policies, once acts on sectors/segments which come to be objects of those policies. Thus, a regulation/neoregulation, most performed by independent governmental agencies, in which the technical efficiency (or technocratic) would enable an efficient performance free of the arguments/political pressures of the State bodies, different of what would happen in the conventional regulation (state-called), it would assume a regulatory role of private business agents within an economy totally privatized.

However, it would be interesting to approach some other aspects regarding that issue. Firstly, the liberal/neoliberal claim concerning the total independence of neoregulation (and agencies) about the political conflicts inherent to State at least must be relativistic, once at State level (and its apparatuses), the own society and the interactive binomial «State/Society», conflict is practically a constant. Afterward, the interaction between the state component (public-managing or governmental-administrative), the private part and the mixed segment, even though within a context of a mostly free economy, implies the existence/presence of multiple/distinct agents and diverse categories. Therefore, all this ends up constituting points of creation/reproduction of multiple and different types of interests, forms of action and conduct models, which end up in conflicts (latent or effective) among the agent respective (economical, technical-administrative, technical-bureaucratic, political, social, etc.), what would require an intermediation or even a more direct action from the State.

According to Mattos (2006, pp. 152 - 153), in Brazilian case, the aim was to change the theoretical/ideal model of regulatory agencies through a mechanism of subordination of the decisions for the executive power, as forms of management contracts. However, such would not imply the configuration of a new juridical-institutional model related to the sectoral regulation at the level of certain economical activities, but previously to the seek for regulatory references in the atmosphere of the «State/Economy» interrelationship. Thus, beyond the creation of a regulatory body for each one of the covered segments, introducing the principle of efficiency in organization and of action of public administration, also setting that mechanisms of public participation should be previewed at the level of administrative procedures and the proper administrative process as a whole. On the other hand, according to signed by Mattos (2006, p. 153), after the 90´s decade of the 20th century, the aim was the institutional bases that promoted the articulation between the development of industrial policies for determined sectors of economy and conditions related to the surrounds. With this, the project of the Brazilian Agency for Industrial Development (ABDI), that seemed to be the scope of a new juridical-institutional model for outlining and promoting the economical development. Indeed, the ABDI intended to be a forum of definition of the general lines of orientation/action, as well as of strategies in terms of policies for industrial development related to different sectors of economy. In fact, concerning ABDI, a deliberative counsel constituted of governmental and civil social representatives. The objectives and goals of ABDI are defined by federal governmental through management contracts, whereas its respective function is defined by law, namely: to promote the economical/technological development in sectors of economy.

In fact, considering what has been presented here in terms of Brazilian experience on regulatory agencies, management contracts and ABDI, from the 90´s decade until now, its is concluded that although the apparent differences in political-ideological character (even unidentifiable in many points), a wide concern about the articulation of a new model in terms of state regulation is noticed. On the other hand, the liberal/neoliberal saying of total independence of the regulatory entities is contradicted terms of

regulation, the Brazilian experience, as well observed Mattos (2006, p. 154), from the 90´s decade until now, sought to promote the configuration of decisive processes and juridical-institutional models for markets´ regulation, as well as to constitute a new model of regulatory State.

The fact is by considering the Brazilian case, it is verified that Brazil not only has been seeking for promoting the building of a new regulatory support, but also the interaction between the new institutions and the existing state bodies, what would configure not only the coexistence between the old and traditional institutions, but also a significant interaction between the bodies related to new regulation and those related to the traditional concept of state/governmental regulation. This leads to a model of regulatory State marked by a considerable level of hybridism. As Mattos (2006, p. 155) highlights, it is verified the mix of institutional models of regulation turned to the correction of “trade issues” with those led to the stimulation to inter-entrepreneurial concurrence, as also with the models destined to regulation and economical planning, and also those turned to promotion of sectoral development, exportation and innovation in terms of industrial research/policy. Finally, the presence of other social organizations created as incubators of industrial/ technological innovation projects would be registered. This implies the availability of different juridical-institutional instruments and mechanisms.

Environmental-Energetic Paradigm In the First Industrial Revolution, taken in England between the 18th and 19th centuries, the Fossil Fuel Paradigm, firstly based on charcoal and, later, mainly after the Second World War, where the oil became a leading energetic. This paradigm was founded on one high level model of energetic voracity with deep impacts over the environment. with deep impacts on the environment. The occurrence of the oil shocks of the 70´s decade starts to show weaknesses and perverse aspects of the model which would characterize toe Fossil Fuels Paradigm. From then, it begins a process of transition to a new energetic-environmental paradigm, namely: the Renewable Energy Sources Paradigm, which assumes strategic importance the technic-economical-productive base and the construction of a sustainable energetic matrix, which has as background the climate matters and the searching for the configuration of one Global Climate Agreement.

Thus, the approach based on the energetic-environmental paradigms presupposes the systemic-integrated interaction of several spheres of public policies. In this sense, the economical component should start to interact systematically with the energetic and environmental fractions, through the strategic management of the energetic matrix and the construction of a sustainable energetic matrix, as also as with other spheres of the public policy (technological, industrial, agricultural, etc.), under an effectively systemic perspective. This interaction configures the definition of a society model based on a determined energy-technologicalproductive base and structured due to a determined economical model. Therefore, each paradigm will entail in hegemony of a model of energetics, in their interactions and entailment on environment and in a two-sided-interactive relationship with that which could be named as lato sensu social configuration (economical, social, technological and institutional), that shapes and is simultaneously shaped by that, in such a way to perpetuate a determined social-energetic-productive base and to define social-technicalorganizational standards.

However, the notion of energetic paradigm is insufficient face to the real dimension of the issue and must be deeply studied through the concept of energetic-environmental paradigm, from the principle that there is a systemic-interactive relationship between energy and environment. The wide and systemic-interactive concept of paradigm, which is based on the dynamic-systemic interaction «Energy/Environment», enlarges the universe of study/matter analysis, having as background the argument that the configuration of a determined energetic base necessarily entails impacts on environment. So, what is defined indeed is a new model which allows the enlargement of the issue horizon. Therefore, it is more reasonable to talk about energetic-environmental paradigm instead of only talking about energetic paradigm. Thus, the

transition at the energetic-environmental level implies a strategic posture, of managing-organizationalplanning character, which is translated by a an intervention on the productive base and the construction of a sustainable energetic matrix.

A new paradigm establishment implies a definition of a society model. In other words, the society is founded on a determined energetic base and structured on a determined economical model. Therefore, each paradigm will entail a hegemony of a model of energetics, its interactions and entailment on environment and within a two-sided-interactive relationship with that which could be named lato sensu social configuration, that shaped it and simultaneously is shaped by that causing the perpetuation a determined social-energetic-productive base and the definition of social, technological and organizational standards. Thus, when there is a seek for referring the inter paradigmatic transition, it must be thought that there is a presence of an intense relationship, of a dynamic-interactive character, between the dominant paradigm and its social conformation, whose more visible aspects seem to be the lifestyle, the consume standards, the ways of using energy and impacts on environment.

On the other hand, according to the analysis developed by Costa e Rodrigues (2011, p 11), the period of paradigmatic transition will be slow (long term), by the joint use of fossil fuels and renewable energetics, with the complementarity between them and with the interpenetration of these two energy-technological and environmental models. The stage of paradigmatic transition in energetic-environmental already has as basic element of characterization the strategic management of the energetic matrix, not only by reducing the participation of oil derives, but also referring to the relative increase of the renewable energetics and the reduction of the dependence upon external flows of energy supply.

In fact, when there is a search for analyzing the paradigmatic transition in energetic-environmental terms, with the emergence of the paradigm following the energy-fossil model, it must be considered that the construction of a sustainable energetic matrix necessarily passes through the incorporation of clean energies related to sustainability and the social-environmental responsibility, respecting the regional specifications and promoting the research for technological innovation. Therefore, the new paradigm appears and walks directly to its consolidation in the content of the technological revolution, process which, according to Chiavenato (1993, pp. 20 and 21), would be marked by the appearance of genuinely new technologies and not only by the simple technologies unfolding yet existent, but the increasing acceleration of the transformation of technology in product/ service available for use/consumption.

However, the level of the energetic-environmental transition, according to what is observed by Costa e Rodrigues (2011, p. 15), the matter of energy conservation and reasonable use gains fundamental importance. By the way, the energy conservation must be considered an energetic resource within the ambiance of the new energetic-environmental paradigm, as well as in the stage of paradigmatic transition. According Costa´s registries (1990, p. 367), energy conservation/rationalization must be seen under two basic views, namely: the energetic sources and consumption segments. The energy conservation/rationalization is articulated with, among other aspects, the change of consumption habits, one of the basic points of the new energetic-environmental paradigm, able to enable the shifting of the energy model.

Sustainable Energetic Matrix The transition of paradigms at the energetic-environmental level implies a strategic posture, focused on management and planning, translated by an intervention on a productive base and the construction of a sustainable energetic matrix. For this, it becomes necessary to implement the strategic management of the energetic matrix, seeking its diversification and making significantly growing the participation of the renewable energetic sources. With this, it will be led to the clean/sustainable energetic matrix, enabling not only the transition between the energy-fossil energetic-environmental paradigm and that one which will replace it, as well as also enabling the appearance on the scene of a series of innovations and

technologies of production and final use of energy. Due to this aspect, the construction of the renewable energetic matrix as way to reach the clean/sustainable energetic matrix has impacts of significant relevance at the level of the technological progress and the own modernization, diversification and expansion of the industrial productive base (new energies conducting to the project of new equipment). Then, the implementation of the strategic management of the energetic matrix becomes fundamental aspect at the level of inter-paradigmatic transition. Indeed, the strategic management of the energetic matrix seeks for its diversification, in order to make grow the participation of the renewable energy sources (the leading energetics of the new paradigm), significantly. Such growth should occur in a gradual/increasing way and meeting the needs and reality of each context (mainly national one), taking in account the energetic base, the universe of natural resources, the productive structure, the technological spring and the needs of growth/development. The strategic management of the energetic matrix (national energetic matrix) enables consideration of several aspects and evoke them for its consolidation. Among these aspects, the improvement of the level of participation of alternative energetic sources, mainly the renewable energies, which are boosting elements of a whole technological base which simultaneously enable those ones and is enabled by them. On the other hand, the construction of a sustainable energetic matrix has as background the weather matters (reduction of carbon emissions) and starting with the weather changes, here or in other importance, has indeed a significant anthropogenic component, the implementation of a significantly cleaner energetic matrix reinforces (ans it is dialectically reinforced) by the configuration of an effective Global Climate Agreement, which, in its turn m, finds strong obstacles (of diverse order) to be founded/implemented. So, through the strategic management of the energetic matrix and the construction of the sustainable energetic matrix, the systematic interaction between distinct spheres of the public policy (economical, industrial, agricultural, technological, technological, energetic, environmental, etc.) will be founded. One extremely important aspect om seeking for a sustainable and diversified energetic matrix, strategic instrument of a new energetic mix in the stage of paradigmatic transition and that is coherent with the universe of resources, and the technological-energetic-productive savoir-faire to of the developing and emergent countries, mainly the countries of the Humid Tropics and particularly in Brazil´s situation, is related to the energetic use of biomass. However, though the advances recorded in the last four decades, in Brazilian case, according to Teixeira´s alert (2003, pp. 11 and 12), the use of the energetic sources from biomass (sustainable energetic sources) occurs in marginal way, generally inserted in other specific systems of production. In those ones, the basic input originates diverse products. In fact, sugar cane sustains the joint production of alcohol, sugar and electricity. In its turn, biomass use in industry is not linked to social or environmental reasons, but due to to its present technical-economical feasibility at the level of determined processes. It must be highlighted the use of biomass in cogeneration, which is maximized through heat and potency generation. In fact, such restrictions end up constituting strong points and opportunities for diffusion of biomass at the level of the Brazilian energetic-productive matrix (and other countries of the Humid Tropics). On the other hand, for Costa e Hoeschl (2006, pp. 30 - 33), bio-fuels constitute one of the most efficient ways of energetic matrix diversification, once contribute for the reduction of Greenhouse Gases emission, constituting the driving power to economical development (through optimization/decentralization of investments) and promoter element for social development (employment/income generation in countryside). For this, it becomes necessary the establishment of mechanisms for supporting bio-fuels production/trade, what can be accomplished, within a wider scope, in the public policies and institutional base fields, through integration/interaction of public bodies, private institutions and small producers. In Brazilian specific case, it must be considered bio-fuel case, natural fuel resulted from renewable sources and assigned to be used in cycle-Diesel engines. Indeed, bio-diesel (while bio-fuel) presents an enormous potential regarding the reach of social/environmental objectives, once may promote the establishment of man in field (promoter element of the formation of small/medium agricultural producers),

stimulate employment creation, enable income generation and collaborate for reducing/diminishing of gases emission that contribute to alter global weather. Beyond this, in strategical terms, the production of bio-diesel aims to diversify the energetic matrix, specially in the case of the countries which import mineral diesel. Indeed, in an integral-strategic-interactive approach, bio-diesel, in acting aiming to promote a higher level of diversification of the energetic matrix, making it more sustainable (a cleaner energetic matrix), conducts to a higher level of its own self-sufficiency. The relationship between economical policy and the seek for a sustainable energetic matrix is comprehended by the fact that a larger diversification of the refereed matrix, mainly by native energetics which take biomass or hydroelectricity as sources, will be translated into foreign exchanges, job creation, regional development, enterprises creation and income generation, for beyond the technological training. However, this relationship only makes sense if only systemically-integrally existent, considered and analyzed, that is, in the ambiance of a dynamic-interactive approach of all areas of public policy. The adoption of a systemic-interactive and integral/global approach, in terms of public policies, regarding the energetic matter (better saying energetic-environmental, will necessarily guide the studies, plans and projects, likely the incentives directed to the implantation of the renewable energetic matrix – requirement of the clean/sustainable matrix – while final product and major objective of the strategic management of the energetic matrix. Thus, in this systemic context within the ambiance of the public policy the relationship «Economy/Energetic Matrix» is highlighted once its diversification/sustainability will not only suffer economical-financial, but also industrial, technological and environmental etc. entailment. This is noticeable in the case of biomass for the countries of the Humid Tropic, remarkably in Brazil. The energetic use of biomass will lead, undoubtedly, to a larger diversification of an energetic matrix, with notorious impacts on the self-sufficiency level of the countries which adopt such option. With this, it is affordable to obtain an energetic matrix with high level of sustainability (a significantly cleaner) and the possibility to promote its more flexible and strategical management is wider. Moreover, the appearance on the scene of the renewable energy sources highlighting biomass) will deeply entail at the level of the productive structure, on industrial base and technological scope. The production of energetic alcohol, for example, in a country like Brazil, led to acceleration of efforts of technological research at the agricultural level (new species of sugar canes, new techniques of soil composting/fertilization, new cultivation procedures, energetic feasibility of manioc, etc.) and at industrial level (more efficient processes, leveraging of calorific/energetic bagasse, use of waste, etc.) Biomass likely other renewable energy sources such as the of sun and wind energy, appears as strategic designer element for in order to developing and emergent countries not only starts to walk along more sustainable ways in terms of their energetic matrix, but also, strengthening its position regarding the configuration of a Global Climate Agreement, as well as assigning lower levels of energetic dependence and enabling the achievement of the rupture with the peripheral condition and overcoming of the semiperiphery-emergent stage through reaching an industrial and technological effective upgrade in order to improve a real process of development. Concerning the ethyl alcohol, also named energetic alcohol or ethanol, according to what is signed by Otaviano (2011, s/p), though still being so based on petroleum and derives, the world energetic matrix presents a trend to growing participation of bio-energy, that is, the energy derived from biomass. In fact, according to data launched by Ministry of Mines and Energy (MME), in 2006, 87,1% of participation in total consumption of energy in the world was from non-renewable fuels, while 12,9% corresponded to renewable fuels. In 2008, in Brazil, 45,4% of the total consumption of energy was renewable and 54,6% was not renewable. Ethanol derived from sugar cane manufactured/used in Brazil, appears, according to several students, researchers and analysts´ opinion, the best option in terms of bio-energy, holder of a significant energetic income and presents a high level of concurrence to world scale. Therefore, alcohol resulted from sugar cane, in countries likely Brazil, represents an important resource whose production and intermediate/final use, including alcohol chemistry as basic input, in terms of Brazil and other markets, entails action/interaction of diverse aspects related to several hosts, namely: economical,

energetic, industrial, technological, etc. This makes the ethanol derived from sugar cane a fundamental option for diversification of Brazilian energetic matrix.

Final Considerations Neoregulation made by independent agencies, really or intentionally above political fights/disputes related to State political power opens good perspectives to configuration/application of public policies destined to innumerable sectors, particularly the energetic sector, as well as its respective dismemberment in energetic-environmental terms. In this sense, the foundations for constructing the clean/sustainable energetic matrix are launched within the context of the public policies supported by neoregulation. From then, the public policies related to the specific areas which will be worked, direct or indirectly, for constructing the non-fossil energetic matrix, must consider that the renewable energetic matrix may become the lounge for the sustainable energetic matrix. Thus, a regulatory and/or strategic-planning agency in energetic, environmental or energetic-environmental terms, in interacting to other agencies related to several spheres of public policies (promotion and technology, for example), can define/implement and/or coordinate/regular the construction of a cleaner energetic nuance, strengthening the seeking for a sustainable model.

Every issue related to strategic management of energetic matrix and construction of the clean/sustainable energetic matrix as element to boost the paradigmatic transition in energy-environmental terms certainly involves the presence of public policies designed/implemented by a neoregulatory State. The strategic management of the energetic matrix aiming the construction of a renewable energetic matrix, found for the establishment of the clean/sustainable energetic matrix, involves innumerable aspects which, in their turn, may become coated of high levels of complexity (namely: energetic, environmental, economical, industrial, technological, etc.) and demands an effectively strategic designer/treatment. With this, it is remarkable the involvement of this matter with several public policy areas. So, regulation/neoregulation and their bodies, specially highlighting the governmental agencies, assume a main role concerning configuration, coordination and strategic outline of several factors involved by this issue. The Brazilian experience from the 90´s decade of the 20th century as well of the first decade of the 21st century shows that it is possible the configuration/existence of a new model of regulatory-State. Its construction would entail a surpass of the liberal/neoliberal dictate of the independent public agencies, compounded by technical/technocratic scenarios of high levels of efficiency/competence and free of the typical conflicts of the State body, theoretical constructo not supported by «State/Society» interaction. Therefore, according to signed by MATTOS (2006, p. 154), new models of executive agencies, promotion agencies, models of management of public-private partnerships and even ways of alternatives in terms of governance/control and contracts management would coexist within other national contexts.

Thus, the construction of a new regulatory model which in one hand overlap (even if not totally) the traditional conception of regulation and on the on the other hand is not surrendered to simplistic neoliberal doctrine, becomes fundamental to define/apply a synergy-global, dynamic-interactive energetic policy, that presents in the construction of a clean/sustainable energetic matrix, generally preceded by a renewable energetic matrix construction, one of its main strategic vectors in seeking for a sustainability-founded model of development, preceded by a renewable energetic matrix, entails an outline and application of public policies destined not solely to the energetic vector. The issue implies another variations, once considering the energetic matrix as a pillar for a cleaner energetic model, while a starter to enable and be simultaneously enabled by the energetic-environmental paradigmatic transition.

So, the construction of a clean/sustainable energetic matrix, preceded by the mounting of a renewable energetic matrix, presupposes an interaction among the several spheres of public policies (energetic, environmental, technological, industrial, etc.) with economical upstream and downstream effects, better

saying, social-economy. Therefore, at economical/social-economical level, the effects are highly positive in many levels: job/income generation, technological training/diffusion, industrial chain (remarkably at the level of the production of generating/final use equipment), industry/agriculture interaction, etc. For beyond, there are positive impacts on environment, notably concerning CO2 emissions. All joined/interacted ends up leading to very significant results regarding promotion of a significant upgrade in terms of people´s life quality and society as a whole. Seeking/constructing a model of development model led by sustainability, founded by an energetic matrix, even as only renewable, that allows cross to a new energetic-paradigm paradigm, already represents itself an important factor to boost people/populations´ life quality.

Thus, the positive effects from the construction of the clean/sustainable energetic matrix are innumerable, even if this is preceded by the construction of the renewable energetic matrix, here concurring the interaction «Energy/Environment», particularly due to «Energy/Technology» vector, configuring an interactive/virtuous relationship in terms of the «Energy – Technology – Environment» trinomial, configuring more favorable results at the level of «Energy – Environment – Development» relationship, base or a sustainable model of development. The level of complexity of this process from its impacts and consequences, mainly concerning considered populations´ life quality, requires the presence of the regulatory/neoregulatory State regulador/neoregulador and its institutions/bodies. So, the governmental agencies overlap the limits imposed by the liberal/neoliberal concept, specifically assuming the specialized roles of regulation/coordination, promotion and planning. Regarding the latest item and as example, it is enough to mention that countries whose trade economies are strongly privatized, like South Korea and Japan, dispose agencies of economical planning.

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