Energy Lessons from Brazil

Much of America's energy debate can be summed up as "drill, baby, drill" versus "farm, baby, farm." Fans of conventional energy are pressing for the development of America's native oil and gas resources, while advocates of renewable energy call for greater amounts of biomass, either as conventional ethanol or next-generation cellulosic ethanol. Ethanol advocates point to Brazil and credit its switch to sugar-cane ethanol with helping to insulate the country from oil shocks of recent years. But digging a bit deeper into the data tells a more interesting tale: while ethanol certainly helped Brazil economically and environmentally, oil production was responsible for three-quarters of the energy wealth created by Brazil's energy development over the last twenty-eight years. How would the United States fare with comparable policies?

Researchers Roger Aliaga-Diaz, Joseph H. Davis, and Marc D. Weidenmier will present their recent National Bureau of Economic Research working paper, "Is Sugar Sweeter at the Pump? The Macroeconomic Impact of Brazil's Alternative Energy Program." AEI's Kenneth P. Green will moderate.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Kenneth P.
Green

What's new on AEI

We still don't know how many people Obamacare enrolled
image The war on invisible poverty
image Cutting fat from the budget
image Speaker of the House John Boehner on resetting America’s economic foundation
AEI on Facebook
Events Calendar
  • 22
    MON
  • 23
    TUE
  • 24
    WED
  • 25
    THU
  • 26
    FRI
Monday, September 22, 2014 | 2:30 p.m. – 4:00 p.m.
Policy implications of the new US labor market normal

We welcome you to join us as a panel of economists discuss US wage and price prospects in the coming months and the implications for the Federal Reserve’s current unorthodox monetary policy.

No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.