Study Rips Ethanol

Ethanol is unlikely to have a significant impact on the market for oil in the U.S. and would not reduce America’s dependence on petroleum, according to a study published by the Competitive Enterprise Institute: The Brazilian Sugarcane Ethanol Experience.
Biofuels are attracting increasing interest around the world with some governments announcing commitments to biofuel programs as a way to reduce greenhouse gas emissions and diversify energy sources.
Advocates of biofuel subsidies and mandates often point to Brazil as a model.
But Brazilian economist Marcus Renato S. Xavier finds similarities between his country’s bioethanol industry and that of the U.S. — but also many crucial differences.
Ethanol’s success in Brazil cannot be replicated in the U.S., Xavier reported.
“Advocates of biofuel subsidies and mandates frequently cite Brazil’s experience with sugar cane-based biomass ethanol as a success story and model for increasing energy security,” Xavier reported. “Even in Brazil, where climate and labor market conditions favor ethanol production, ethanol is cost-competitive with gasoline only during periods when oil prices are high.”



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