The economy may be strong in some areas but weak in others as the fuel industry seeks to deprive the culture of traditional food bearing crops, in exchange for fuel bearing ones, and decreases the biodiversity of the nation in the process. "... with ethanol and biodiesel as a springboard, Brazil's President...Lula da Silva aims to turn his country into an energy superpower --...environmentalists warn that although bio-fuels reduce emissions of greenhouse gases...they could also trigger a massive expansion of the bio-fuel crops... destroying habitat and biodiversity." (Osava, 2006, NP)
According to the International Food & Agricultural Trade Policy Council (October 2006), "in Brazil,...the growth in world demand for ethanol will affect the environmental sustainability of sugar production...." (International Food & Agricultural Trade Policy Council, 2006, NP). Yeedt the council goes on to say that; "...liberalization in the world sugar market will benefit Brazil in terms of its ability to export both sugar and ethanol..." (NP) Lastly, "The resulting increase in sugarcane monoculture will have a net negative effect on soil quality and water use, perhaps more negative for water than soil, because sugarcane is a "thirsty" crop." (NP) The council also stresses that there will likely be an unknown effect, on air quality, as burning of cane will decrease air quality and yet the ethanol will replace other fuels that are more damaging to the air,...
(NP) In Another economic change note there is a movement in Brazil to invest in ethanol production
plants located in nations that are exempt from U.S. tariffs, to increase profitability of Brazilian sugar ethanol exports to the U.S. market. (Constance, 2006).
The consolidation of bio-ethanol as an important source of energy is linked to the creation of about one million direct jobs and an extensive agribusiness supply chain that has been contributing to rural and industrial development. Also bio-ethanol has helped to improve air quality in urban areas due to its much lower pollution characteristics and it has been regarded as an important alternative to greenhouse effect mitigation...Based on the successful experience of bio-ethanol Brazil is just starting a biodiesel program that aims basically to reduce imports of diesel oil, stimulate
social development of poor rural areas, mainly in the Northeastern part of the country, and reduce emissions from diesel-powered vehicles.... It is worth of note that conversely to what happens elsewhere where vegetable oil is processed with methanol to produce methyl ester in Brazil the preferred route for biodiesel production will use bio-ethanol to produce ethyl ester. The environmental advantage is obvious considering that methanol is mainly produced from fossil feedstocks. (Szwarc, 2004 December 9, NP).
According to Morgan the Brazil trend for producing and selling bio-fuels has many implications for other nations with regards to economy,
environmental policy,
trade and development, and could potentially greatly influence how poor nations begin to compete in the
global market. Some
