Brazilian ethanol has been used as biofuel since the 1970s, and currently is replacing approximately 40% of the gasoline that would be otherwise consumed in the country. Domestic demand for Brazilian ethanol is increasing as well as its exports since the biofuels are being promoted by governments around the world as an alternative to fossil fuel. In this context, the main objective of this paper is to do a descriptive and exploratory analysis of the Brazilian ethanol production system and the potential of biofuels in Brazil. We overview the recent developments in the ethanol industry with regard to ethanol technologies in Brazil (including new varieties, transgenic varieties, cellulosic technology), and the role of the Brazilian Agricultural Research Corporation (EMBRAPA) research in this area. We examine the government promoting policies and their impacts on land use such as the increase across time and space in sugar cane area planted in the states of Sao Paulo, Parana, Minas Gerais, Goias and Mato Grosso do Sul (the main producers) and its consequences for other crops in these producing areas and for food security.
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