Lecture 22

Question 1

ProÁlcool program in Brazil

Answer 1

• subsidies, low-interest loans for processing facilities,
  and government support led to amazing progress
• engines were developed that could run on 100%
  ethanol (E100)
• by the mid-80s almost all the cars sold in brazil were
  ethanol burning

Question 2

What led to the fall of ProÁlcool

Answer 2

inflation, changing world markets and government
budget issues

Question 3

Why can it be difficult to keep a government program going for a long period of time

Answer 3

term limits for government, partisan politics, and public attitudes towards the policy

Question 4

the corn ethanol mandate stems from ____

Answer 4

Renewable Fuel Standard (RFS1) from the Energy Policy Act of 2005

Question 5

EISA of 2007 expanded the RFS (RFS2) to include
the following numbers

Answer 5

• 36 billion gallons of renewable fuel annually by 2022
• no more than 15 billion gallons from corn ethanol
• no less than 16 billion from cellulosic biofuel

Question 6

__ was given regulatory control over the RFS

Answer 6

EPA

Question 7

Are celluloic ethanol and corn ethanol production keeping up with expectations

Answer 7

No

Question 8

How to carry out lofty policy goals

Answer 8

Incentives