The Economics of Alternative Energy Sources and Globalization

Hidden Ethanol Subsidies in Brazil Revisited

Author(s): Troy G. Schmitz and James L. Seale

Pp: 65-75 (11)

DOI: 10.2174/978160805233211101010065

* (Excluding Mailing and Handling)

Abstract

Brazil is the world’s largest sugar producer and exporter of ethanol, and the world’s second largest ethanol producer. Hidden subsidies such as government blend ratios have added to Brazil’s ability to produce sugar and ethanol. The blend ratio has remained relatively stable over the last several years, but it likely will be changed to promote more sugar production, relative to ethanol, given the high price of sugar in 2009.

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