Wednesday, May 1, 2013
Renewable Energy Interesting Article
I ran into this article today and I thought it was interesting and sort of relevant to class. Will a reduction of Brazilian imports of ethanol into the U.S. contribute to the production of biofuels within the U.S.? How would this affect our economy and the Brazilian economy? Just some food for thought...
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Ligia, as a fellow Brazilian I must say that the reduction of Brazilian imports of ethanol is quite good for Brazil as a whole, of course it will harm Brazil's export rate, but in an environmental view it will be good because of the production surplus of mono crop (sugarcane) and it may also decrease the price of ethanol in Brazil. Eversince Brazil started to export ethnol to the US the price if ethanol went from R$1.00-2.00 (50 cents-$1) per liter, which got compared to the price of gasoline in Brazil, making gasoline the preferred fuel for the population since ethanol burns much faster than gas.
ReplyDeleteApparently the Brazilian gov't has proposed reducing taxes and interest rates for sugar cane producers. In addition, they have also provided soft credit (approx.: $2 billion) to help finance sugar cane production and storage. All this comes at a cost; the government is expected to lose $480 million in tax revenue. I wonder how efficient this policy will be for Brazil as they continue to develop and build infrastructure.
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