Brazil Has Something to Teach Us
Well, if you're one to complain about gas prices, THIS is the article to read. I saw a segment on CNN last week about some sugar ethanol from Brazil being used that was a lot cheaper than gas and better for the environment as well as the economy. Well, of course, I got curious. I searched and found this article that explains EVERYTHING!
Basically, when our country hit bad times with gas a couple of decades ago, there was 100 percent or maily enthanol (alcohol) gas. Brazil produced this also 30 years ago, and they are now enjoying their return on investment. Recently, Brazil has found a way to utilize one of their main resources, sugar cane, as a producer of enthanol. Now, this type of gas today is less than half the price of regular gas and it does not pollute as much. What more could you ask for?
Now, the problem is no country has enough land to produce sugar cane. Therefore, in my creative and imaginative mind (not to mention nieve but just follow me on this) I thought why not each country utilize their own crops that they have more than enough of. THis would be efficent. Well, in my mind anyway.
Another thing about this whole sugar ethanol is that it is a substitute for gas. This would create more competition and drive prices way down because gas is very elastic these days.
Well, that is all I have. Happy Doo Dah Day!
1 comment:
Ethanol is primarily used as an oxygenate for gasoline in the United States. An oxygenate is used to reduce the carbon monoxide that is created by internal combustion. As far as oxygenates go, ethanol is a more expensive additive compared to MTBE. MTBE, however, has come under fire from environmentalists claiming that it contributes to water pollution. Consequently, gasoline refiners are turning to the more expensive corn-based ethanol produced in the United States.
As Elicia points out, Brazil produces a cheaper version of ethanol from their abundant sugar cane crop. Our government, however, makes it difficult to import the cheaper Brazilian ethanol by imposing a 54 cents per gallon tariff on the additive.
Now, why would our government want to make Brazilian ethanol more expensive than the American version? Could it be a form of protectionism for American corn growers? I bet you can guess my view on this.
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