Proálcool to the "Próetanol": new challenges in the production of Brazilian ethanol

Abstract

Since the implementation of the wide program of renewable fuel - Proálcool, there were many changes, and the dictates of the international market and the prolonged government intervention have shaped this sector. In this sense, this paper performs an exploratory study and descriptive of the extended periods of government intervention, of the extensive process of deregulation, centered the focus in the current period, called Próetanol. Without the state coordination, with reducing the incentives and subsidies, new challenges present themselves. As search result, it is emphasized that in a period of internationalization of production and expansion of the internal market, with demand generated by flex fuel cars, even though the government to distance itself from the process of price formation, their coadjuvant participation is required. In some instances, to guarantee domestic market supply, easing imports of ethanol, in others, encouraging the formation of stocks or accompanying  the process of mergers and acquisitions that occurred after the financial crisis. Finally, the Próetanol term describes a period in which production and marketing of ethanol is no longer regulated, but supported by public policies.