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The production and utilization of biofuels is promoted in many countries and regions, with Brazil and the USA being the two main bioethanol producing countries. It is estimated that both markets will expand as a result of their biofuel programs. Our study is the first to evaluate how expansion of FFV utilization in Brazil and the U.S. biofuel policy amendment will impact the world bioethanol, sugar, and corn markets. We utilize a world bioethanol market model which is linked to the world sugar and corn markets models. As a result of our econometric analysis, we conclude that both the expansion of Brazilian FFV utilization and the U.S. biofuel policy amendment are predicted to impact not only the bioethanol market but also the world corn and sugar markets.

japanese journal of rural economics

Impact of the Expansion of Brazilian FFV Utilization and U.S. Biofuel Policy Amendment on the World Sugar and Corn Markets: An Econometric Simulation Approach