The feasibility of producing fuel alcohol from crops containing sugars or starch in Southeast Asian countries has been investigated from various points of view. A review of energy balance analysis showed that in fuel-ethanol production from crops the ratio of energy output to energy input is close to or less than unity unless bagasse is used as a heat source. The cost of ethanol production depends mainly on the price of raw material (crops), which may be supported by low labor cost in farming. The total ethanol energy planned to be supplied in the Philippines and Thailand is only 2–4% of the current fossil energy consumption in those countries. Fuel-ethanol production from crops will thus make little contribution to the improvement of trade balance. On the other hand, the exportation of excess crops by the non-oil producing countries is the main source of revenue to be used in the importation of crude oil, petroleum products, machines and so on. Increased land use to cultivate crops for ethanol production would cause large scale destruction of the ecosystem of tropical regions.