This report assesses the economic and environmental effects of Brazil's investment in sugar cane ethanol and new biodiesel vehicle fuel policies. It also discusses their socio-economic and energy security impacts. The economic analysis is centered around these fuels' competitiveness compared to traditional fuels and breaks down the cost curves of the fuels and their feedstocks. The environmental analysis focuses on their greenhouse gas emissions relative to traditional fuels as well as a brief summary of other environmental externalities from the growth of feedstocks.
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