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Non-Tech : Farming

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To: Cogito Ergo Sum who wrote (1383)6/19/2008 7:24:52 PM
From: Snowshoe   of 4449
 
We could see a gradual reduction of the ethanol tariff, along with the subsidy...

Lawmakers look to reduce ethanol tariff
meatnews.com

If so, it makes sense to also cut the mandate and let market forces determine where ethanol is sold. Perhaps we'll develop some regional variations in US transportation. I could see Brazilian ethanol becoming highly competitive with gasoline on the US east cost.

Meanwhile, southwestern states like California/Arizona could shift emphasis toward electric cars. There are two good reasons for going electric in places like California. One is the potential for cheap solar power, and the other is air pollution. Somewhere I saw a study suggesting that the ethanol mandate worsens air pollution in California.

So, let's suppose that Brazilian ethanol gradually does penetrate the US east coast urban markets. Is Cosan a good investment? What about competition from other Brazilian ethanol producers? I guess I should take a closer look.
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