Thursday, July 11, 2013

Review: Thoughts on Brazilian vs. American Energy Policy

In Brazil, there are multiple policies and proposed policies relating to fuel sources. Over the past 25 years, policies have focused on reducing dependence on foreign energy supplies and expanding domestic ones. Both petroleum production and ethanol production have expanded and the national ethanol program raised ethanol consumption. There are new proposals to expand ethanol production further and require its integrated usage. Natural gas supply has also been growing in the past years. There are proposals to expand the use of combined heat and power (CHP) systems, as well that could use sugar cane products and natural gas.

On the other hand, in the US, the Obama Administration has a main focus on reducing dependence on foreign oil. The majority of his plans are fossil fuel based. The Administration has implemented the highest fuel economy standards on heavy-duty vehicles and passenger car vehicles in its history.  The administration also supports the Renewable Fuels Standard, which supports the development and use of biofuels, as well as the reduction of fossil fuel use by promoting electric cars. Loan programs have been set up to spur investment in advanced fossil energy technologies.

In 2000, renewable energy sources accounted for 56% of the total energy supply in Brazil. Over the past years, Brazil has been developing their renewable energy production policy through hydroelectricity and ethanol mostly. They have proposals to advance grid wind power, increase the efficiency of new thermal power plants and develop solar technologies in communities that are not connected to the grid.

In the US, there are policies in place for renewable energy sources and the energy focus has been on reducing consumption and emissions in the past. Electricity generation from renewables has doubled during the President’s first term and the Obama Administration plans to double this again by 2020. Although this may seem like a large improvement, the amount of renewables used in the US is extremely small relative to fossil fuel consumption and the majority of efforts are still focused on fossil energy policy. (See figure below from EIA)



In both countries, current policies have reduced emissions and increased efficiency standards, thus reducing consumption waste, which has benefitted the environment. By stimulating the energy sector and reducing foreign energy imports, Brazil boosted itself economically, as well as socially, by increasing employment.

In Brazil, the proposed policies would further reduce dependence on foreign energy imports, sway their trade balance to be more export-heavy and stimulate multiple industries in the economy. Through the solar proposals, the societies that are not connected to the grid would be stimulated through increased access to energy sources other than wood. General society would also benefit from increased jobs in the ethanol production industry. Through these policies, the country will also benefit environmentally by reducing emissions, spurring sugar cane development and being more efficient in energy consumption.

The US will economically benefit from new renewable policies by reducing dependence on foreign energy imports, spurring research and technology for advancing energy projects and by reducing energy costs to society. Due to the current high level of emissions from the US, implementing renewable energy policies and efficiency standards will greater benefit the environment, as well as society.

1 comment:

  1. It seems as though Brazil is headed in the right direction as far as renewable energy is concerned. USA, on the other hand, seems to be more concerned with decreasing foreign dependence on oil than with developing new technologies for renewable energy. I wonder how that will affect the USA in the future, and how quickly we'll see the consequences of the steps being taken today.

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