Development and the problem of Brazilian ethanol program
2007
Koizumi, T.(Japan. Ministry of Agriculture, Forestry and Fisheries, Tokyo. Policy Research Inst.) | Ohga, K.
More than half of the sugar cane grown in Brazil goes toward ethanol production. The Brazilian government has promoted the ethanol program since 1975. In Brazil, domestic ethanol consumption is increasing because of growing interest in the Flex-Fuel car. The government plans to expand ethanol exports based on the National Agro-energy plan (2005). The government also plans to expand sugar exports. Brazil will not change the allocation ratio of sugar to ethanol produced from sugar cane because that would mean increasing both sugar and ethanol production, forcing an increase in sugar cane production. Although Brazil can expand sugar cane production, it will cause competition between energy and food, and impact not only domestic food markets but also world food markets. It may also cause soil erosion, forest fires, salt accumulation, and water pollution. Further agricultural development, caused by the ethanol policy, will have a negative impact on the environment.
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