Full Speed to Alternative Energy
With the 1973 oil crisis caused by the Organization of Arab Petroleum Exporting Countries (OAPEC) embargo on oil, the North Atlantic inched towards alternative energy, whereas Brazil blazed full speed ahead, using its huge sugar production to create large ethanol production which Brazilians call alcool, pronounced like alcohol. This was given a bigger boost when a 1980 Brazilian law was passed which stated that all gas stations must have the three main fuels: petroleum, diesel, and alcool. Another big boost has been in Flex-Fuel cars, which are cars that run on both gasoline and ethanol, so both can be taken at gas stations. As you can see on the infographic below, Brazil has a large amount of resources available, as it is the largest exporter of biofuels and 11.6% of the world's hydroelectricity. Through its exports of biofuels and now oil Brazil is now increasing its GDP by adding exports and being able to lower energy imports while paving the road towards energy independence.
This change to alternative clean energy actually relates to one key economic concept, which is scarcity, for because Brazil didn't have that much oil in the 1970s and was importing it the nation turned to energies in its own area such as hydro ethanol and nuclear. It also has some relation to the factors that affect demand as tastes and preferences change and Brazilians go to cleaner energy sources in order to cut off the chain of energy dependence and bring the nation to greater heights and power.
This change to alternative clean energy actually relates to one key economic concept, which is scarcity, for because Brazil didn't have that much oil in the 1970s and was importing it the nation turned to energies in its own area such as hydro ethanol and nuclear. It also has some relation to the factors that affect demand as tastes and preferences change and Brazilians go to cleaner energy sources in order to cut off the chain of energy dependence and bring the nation to greater heights and power.