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Alternative Energy and Brazil

How Brazil is leading the drive towards alternative energy

Apr 10, 2006 Bhumika Ghimire

What will we do if oil wells dry up? What will we do if there is no more coal? These are the questions which concern many nations today. With the world increasingly relyi

While the whole world is worried about the oil wells drying up and coal mines being exhausted, Brazil has made huge strides in developing an alternative fuel source.

After the oil shocks of the 1970s, Brazil started focusing on developing alternative sources of energy, mainly ethanol. Its large sugarcane farms helped a lot. In the year 1985 "91% of cars produced that year ran on sugar-cane ethanol" (www.newstarget.com,2005). This is a great achievement, considering that other countries in the world still heavily depend on oil.

According to the YaleGlobaleOnline, "At current prices, Brazil can make ethanol for about $1 a gallon, according to the World Bank. That compares with the international price of gasoline of about $1.50 a gallon. Even though ethanol gets less mileage than gasoline, in Brazil it's still cheaper per mile driven. As a result, ethanol now accounts for as much as 20% of Brazil's transport fuel market. The country's use of gasoline has actually declined since the late 1970s. The use of alternative fuels in the rest of the world is a scant 1%."(2006)

As a result of this, Brazil is spending less on oil imports, which saves the country billions. The USA can learn much from the Brazilian experience. There is a debate going on in the US now on developing alternative sources of energy and relying less on foreign oil. After the events of 9/11, the subsequent strained relations with the Middle East have now forced the government and people to think about being self-reliant in energy.

Brazil and the US can start a program to share the knowledge on having a sustainable renewable energy program. Both nations can share technology and knowledge, with the possibility of joining forces to develop fuel efficient vehicles. Japan is now working with Brazilian industries in furthering ethanol export studies and possibilities for new ventures in the area. The time has come for the US to take notice and start on the path to be self-reliant in energy.

Sources:

YaleGlobal

News Target

The copyright of the article Alternative Energy and Brazil in International Trade is owned by Bhumika Ghimire. Permission to republish Alternative Energy and Brazil in print or online must be granted by the author in writing.
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