The Role of the State in Accelerating Energy Transitions: Lessons from Brazilian Economic Ideas for the Oil Industry (1930s–1950s)

Echoing the discussions about the role of the state in accelerating the transition to low-emission sources of energy, this article revisits the ideas developed in Brazil, from the 1930s to the 1950s, to accelerate the transition not away from but at that time further toward domestically produced oil, with the creation of the state-owned company Petrobras. It shows that two distinct issues were at stake: the public or private control over the company for matters of economic efficiency, and the use of domestic or foreign capital for questions of long-term energy sovereignty and economic independence. This article finally draws parallels for the twenty-first-century energy transition, especially in developing countries. Given today’s geopolitical uncertainty and the need to accelerate the transition to energy sources that are still in development, such as renewables and green hydrogen, the creation of sector-specific public companies could be a valuable strategy alongside traditional regulatory tools. JEL Classification: B20 History of Economic Thought since 1925: General; N76 Economic History: Transport, Trade, Energy, Technology, and Other Services: Latin America; Caribbean; Q40 Energy: General