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<li>Visionaries--an interesting article about ethanol from the Earth
Policy</ul>
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<div><br>
Institute</div>
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<div> Tom Trail</div>
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<blockquote type="cite" cite align="center"><font size="+2"><b>Can the
U.S. Replicate Brazil's Success with Ethanol?</b></font><br>
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<blockquote type="cite" cite>American viewers who saw <a
href="http://www.msnbc.msn.com/id/12676374/">Dateline NBC</a> and <a
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"http://www.cbsnews.com/stories/2006/05/04/60minutes/main1588659.shtml"
>60 Minutes</a> reports on May 7 are now asking: If Brazil could ramp
up its use of ethanol and diminish its dependence on foreign oil, why
can't we?<br>
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<blockquote type="cite" cite>According to <a
href="http://www.worldwatch.org/ct/20060509/pubs/sow/2006/toc/4/"><i
>State of the World 2006</i></a>, ethanol represented only a small
share of Brazil's market until the 1970s, when the government made
reducing oil import dependence a national priority. As a result of a
combination of tax breaks and fuel blending mandates that drove
investment in ethanol production and use, the industry made rapid
progress.<br>
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<blockquote type="cite" cite>The Brazilian government also promoted
the manufacture and sale of all-ethanol cars and provided subsidies to
increase sugar production and distillery construction, while
infrastructure was developed to distribute ethanol to thousands of
pumping stations around the country. As a result, by the mid-1980s,
ethanol-fueled vehicles accounted for 96 percent of total car
sales.<br>
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<blockquote type="cite" cite>But growth slowed dramatically in the
1980s and 90s as oil prices fell and sugar prices rose, and by 1997,
sales of ethanol vehicles came crashing down to less than 1 percent of
total vehicle sales. To address this problem, in 2003 Brazil began
encouraging flexible fuel vehicles that can run on virtually any
mixture of gasoline and ethanol, changing the ethanol market
overnight. In 2005, flex-fuel vehicles accounted for more than half of
new cars sold.<br>
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<blockquote type="cite" cite>Since the 1970s, Brazil has saved almost
$50 billion in imported oil costs-nearly 10 times the national
investment through subsidies-while creating more than 1 million
rural jobs.<br>
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<blockquote type="cite" cite>Brazil's experience shows how government
leadership and smart policies can reduce dependence on imported oil
while boosting local economies. It's a success story that a growing
number of U.S. political and industry leaders are eager to
emulate.<br>
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<blockquote type="cite" cite align="center"><b>World's Top Ethanol
Producers, 2004</b></blockquote>
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</x-tab><b>Country</b><x-tab>
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</x-tab><b>Amount</b><br>
(million liters)<x-tab>
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</x-tab><b>Share of World Production</b><br>
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</x-tab><b>Primary Feedstocks</b><x-tab>
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</x-tab>Brazil<x-tab>
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</x-tab>15,110<x-tab>
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</x-tab>37<x-tab>
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</x-tab>Sugarcane<x-tab>
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</x-tab>United States<x-tab>
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</x-tab>13,390<x-tab>
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</x-tab>33<x-tab>
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</x-tab>China<x-tab>
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</x-tab>3,650<x-tab>
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</x-tab>9<x-tab>
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</x-tab>Corn, cassava, and other grains<x-tab>
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</x-tab>India<x-tab>
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</x-tab>1,750<x-tab>
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</x-tab>Sugarcane, cassava<x-tab>
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</x-tab>France<x-tab>
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</x-tab>830<x-tab>
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</x-tab>Sugar beets, wheat<x-tab>
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</x-tab><font size="-1">SOURCE: See</font> <a
href="http://www.worldwatch.org/ct/20060509/pubs/sow/2006/"><font
size="-1"><i>State of the World 2006</i></font></a><font size="-1">,
Chapter 4, Endnote 13.</font><x-tab>
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<x-sigsep><pre>--
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<div>Dr. Tom Trail<br>
International Trails<br>
1375 Mt. View Rd.<br>
Moscow, Id. 83843<br>
Tel: (208) 882-6077<br>
Fax: (208) 882-0896<br>
e mail ttrail@moscow.com</div>
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