The Brazilian alcohol program; Foundations, results, and perspectives
- Economics Dept., Univ. of Sao Paulo, Rua Boa Vista 280, 01014 Sao Paulo (BR)
The Brazilian alcohol program, Proalcool, is discussed. It was developed as a strategic answer to the high dependence on imported oil and sharp increases in oil prices that adversely affected the Brazilian balance of payments. The program is intended to replace part of the gasoline consumption with ethanol. The availability of resources, including fertile land and unskilled labor, made possible its implementation. As a result of these measures, there were changes in the Brazilian energy matrix. The most important were the substitution between gasoline and fuel alcohol and also between fuel oil and electricity. Other benefits with Proalcool include environmental gains, employment creation, increase in rural area income, and technological improvements in the sugarcane sector. These have allowed an ethanol cost reduction from US$70/bbl at the beginning the program (1976) to US$45/bbl in 1989.
- OSTI ID:
- 6214803
- Journal Information:
- Energy Sources (New York); (USA), Vol. 12:4; ISSN 0090-8312
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
ALCOHOL FUELS
FUEL SUBSTITUTION
RESOURCE DEVELOPMENT
BRAZIL
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PETROLEUM
PRICES
ECONOMIC IMPACT
ENERGY CONSUMPTION
GASOLINE
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SUGAR CANE
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