Describe three economic factors that were involved in the choices made by Brazilians to abandon ethanol powered automobiles after the mid-1980s. Why have many Brazilians recently returned to ethanol powered cars?
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The country of Brazil has been at the head of the biofuel industry since the 1970s. It was one of the first nations to find an alternative to gasoline for cars. The biofuel industry has grown throughout the years, mostly through its production of ethanol, a fuel created from sugar cane. Still, since the beginning of the industry, it has been on quite a roller-coaster ride.
A Good Start
In the mid-1980s, Brazil was producing biofuel more successfully than any other country. Brazilians drove more alternative-fuel cars than gas-powered ones. The amount of sugar cane in Brazil meant that it could be used as both a food and fuel source. Brazilians embraced this idea.
Brazil’s government had the foresight to make ethanol production a priority to beat the high prices of gasoline. Sugar cane farmers were given extra money for growing sugar cane. All of the factors of production were in place for the economy of biofuels to grow.
A Rough Patch
Several developments led to the end of that growth. The price of sugar cane rose while the price of oil (used to make gasoline) dropped worldwide. New offshore oil fields were discovered. These developments meant that it was no longer in the best interest of the government to continue to promote the biofuel industry.
By the late-1990s, the tide had completely turned, with less than one percent of all cars produced being built to run on ethanol. Brazil needed a new reason to rebuild the biofuel industry.
A Tough Competitor
In the early 2000s, the United States became interested in the biofuel industry. State governments passed laws to reduce pollution. Car makers took note and began to explore other fuels. While the US decided to use corn to make ethanol, Brazil still saw an opportunity to once again focus on biofuel. The government chipped in by reducing taxes on cars that ran on ethanol. Car makers began to produce “flex-fuel” cars, which could use both ethanol and gas. Brazil used competition from the US and other countries to rebuild its status and biofuel economy.
Ups and Downs
A sugar cane processing plant showing a jumble of machinery, tubes, pipes, and silos.
Sugar cane processing plant, Brazil.
Over the past 20 years in Brazil, sugar cane has earned more money as a fuel than as a food. Better technology has led to better sugar cane production. The government has again played its part in helping the industry, making sure that oil companies included ethanol in their gasoline mix.
However, in the early 2010s, Brazil’s economy slowed. Biofuel factories shut down because production was no longer as profitable. Many of the companies producing fuel from the sugar cane switched back to food. Many people lost their jobs.
More recently, Brazil once again changed its policy toward biofuels. The industry has again become important to the government, which is now taxing gas more heavily. In January of 2018, the demand for ethanol rose 55 percent from the previous year. The rise in the price of oil around the world has also been a driving force in the change. Brazilians are driving ethanol-powered cars more than ever.
The biofuel industry will no doubt go through more ups and downs. It is more than likely that Brazil will continue to make it a focus of its government policies and its economy for a long time.
Answers
Explanation:
Describe three economic factors that were involved in the choices made by Brazilians to abandon ethanol powered automobiles after the mid-1980s. Why have many Brazilians recently returned to ethanol powered cars?
the site if you dont understand
The country of Brazil has been at the head of the biofuel industry since the 1970s. It was one of the first nations to find an alternative to gasoline for cars. The biofuel industry has grown throughout the years, mostly through its production of ethanol, a fuel created from sugar cane. Still, since the beginning of the industry, it has been on quite a roller-coaster ride.
A Good Start
In the mid-1980s, Brazil was producing biofuel more successfully than any other country. Brazilians drove more alternative-fuel cars than gas-powered ones. The amount of sugar cane in Brazil meant that it could be used as both a food and fuel source. Brazilians embraced this idea.
Brazil’s government had the foresight to make ethanol production a priority to beat the high prices of gasoline. Sugar cane farmers were given extra money for growing sugar cane. All of the factors of production were in place for the economy of biofuels to grow.
A Rough Patch
Several developments led to the end of that growth. The price of sugar cane rose while the price of oil (used to make gasoline) dropped worldwide. New offshore oil fields were discovered. These developments meant that it was no longer in the best interest of the government to continue to promote the biofuel industry.
By the late-1990s, the tide had completely turned, with less than one percent of all cars produced being built to run on ethanol. Brazil needed a new reason to rebuild the biofuel industry.
A Tough Competitor
In the early 2000s, the United States became interested in the biofuel industry. State governments passed laws to reduce pollution. Car makers took note and began to explore other fuels. While the US decided to use corn to make ethanol, Brazil still saw an opportunity to once again focus on biofuel. The government chipped in by reducing taxes on cars that ran on ethanol. Car makers began to produce “flex-fuel” cars, which could use both ethanol and gas. Brazil used competition from the US and other countries to rebuild its status and biofuel economy.
Ups and Downs
A sugar cane processing plant showing a jumble of machinery, tubes, pipes, and silos.
Sugar cane processing plant, Brazil.
Over the past 20 years in Brazil, sugar cane has earned more money as a fuel than as a food. Better technology has led to better sugar cane production. The government has again played its part in helping the industry, making sure that oil companies included ethanol in their gasoline mix.
However, in the early 2010s, Brazil’s economy slowed. Biofuel factories shut down because production was no longer as profitable. Many of the companies producing fuel from the sugar cane switched back to food. Many people lost their jobs.
More recently, Brazil once again changed its policy toward biofuels. The industry has again become important to the government, which is now taxing gas more heavily. In January of 2018, the demand for ethanol rose 55 percent from the previous year. The rise in the price of oil around the world has also been a driving force in the change. Brazilians are driving ethanol-powered cars more than ever.
The biofuel industry will no doubt go through more ups and downs. It is more than likely that Brazil will continue to make it a focus of its government policies and its economy for a long time.