| Abstract: | The paper describes and analyses: the events, motivations, policies and forces that led to the introduction of ethanol as fuel in Brazil; the recent decision to continue with the programme; and draws important lessons that might be relevant for other regions and countries as they contemplate a transition away from petroleum transportation fuels. The alcohol programme began in the late 1970s; by 1986, as a result of large subsidies, 76% of all new cars were built to be fuelled by alcohol, but by 1996 that was down to less than 1%. It is shown that the pursuit of ethanol fuel in Brazil was not based on long term plans with deep-set values, but has been an ad hoc response to a particular set of circumstances, including a depressed sugar industry, an ambitious attempt to reduce oil dependence and more recently a range of 'green' arguments. |
