Present crisis and the future of alcohol programs in Brazil

After the oil shortages of the 1970s, an intensive program to enhance the use of alcohol as an automotive fuel substitute was instigated in Brazil. This program was successfully developed during the 1980s decade, to the extent that 90% of the demand for new automobiles has been carried by alcohol cars. Since 1989 the paradox of a current gasoline surplus and alcohol shortage has caused the sales of alcohol cars to plummet. The technical solutions presented by the authors for the alcohol crisis include changing the relative pricing of fuels and vehicles, reaching an equilibrium between fuel demand and production, and obtaining a recovery of alcohol credibility. Together, these factors may help improve sales of the alcohol-fueled car