Brazil's ethanol program: The case of hidden sugar subsidies

Troy Schmitz, Andrew Schmitz, James L. Seale

Research output: Contribution to journalArticle

17 Scopus citations

Abstract

Brazil is the world's largest producer and exporter of sugarcane, and the world's third largest consumer of sugar. Brazil produces sugarcane-refined sugar for human use as well as anhydrous and hydrous alcohol, which are used mainly as a blend when converting alcohol to domestically consumed gasoline. Over 50 percent of Brazil's sugarcane production is converted into fuel for automobile use. Brazil's fuel policy provides a hidden subsidy to Brazilian sugarcane farmers. We show that changes in the ethanol program, in the direction of Increasing blend ratios, transfer more than 100 million U.S. dollars annually in the form of hidden subsidies.

Original languageEnglish (US)
Pages (from-to)254-265
Number of pages12
JournalInternational Sugar Journal
Volume105
Issue number1254
StatePublished - Jun 1 2003

ASJC Scopus subject areas

  • Food Science

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