Abstract
The United States of America and Brazil are the world’s first and second-largest biofuels producers. The United States (U.S.) has dedicated a significant portion of agricultural land for crops to produce biodiesel, while Brazil has been using sugar cane as raw material to produce ethanol. To make the world’s top producers in global biofuel markets, various institutions in each country have played significant roles. These institutions include renewable energy legislators, bioenergy policymakers, and energy ministries of their governments. This study delineates the historical role of these institutions responsible for the sustainable development of biofuel industries in both countries. It also provides an overview of economic impacts as a result of institutional decisions. The study reveals that systematic legislations and sustainable and robust renewable energy policies of government institutions have helped the U.S. and Brazil to boost their bio-economies. As both countries intend to keep expanding their biofuel productions, the role of key government institutions is vital in the sustainability of biofuels.
Highlights
Biofuels are renewable energy sources that have helped foster a new business cycle in the global economy [1]
Its focus is to answer fundamental questions: what are the critical historical government initiatives and institutional processes that helped develop bio-economies in Brazil and the USA? Since the nineteenth century, the systematic and timely interventions of American and Brazilian national institutions have helped to structure the biofuel sector in each country. This study identifies these interventions as creating and developing renewable energy institutes, sustainable energy policies, and legal initiatives to blend biofuel with regular gasoline
It is predominantly based on performing modified desk research, which utilizes the historical trajectory of biofuel policies in Brazil and the USA
Summary
Biofuels are renewable energy sources that have helped foster a new business cycle in the global economy [1]. The two principal biofuels are ethanol—extracted from agricultural products, and biodiesel—produced from animal fats, vegetable oils, or both. In 2011, nearly 124 billion litres of biofuel were produced globally; 20% of the biofuels consisted of biodiesel, and 80% of biofuels produced were ethanol [2]. Biodiesel, being non-toxic, is an environmentally friendly fuel. Various raw materials produce biodiesel, including rapeseed oil, palm oil, sunflower oil, and soybean oil, and non-edible Jatropha, Linseed, Neem, and Polanga sources, as discussed in the literature [3]. Brazil and the USA are the largest producers of biofuels. In 2009, the USA and Brazil contributed 54% and
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