Abstract

The Brazilian effort of producing alcohol as a substitute for other energy sources
has been heavily criticized, particularly due to the substitution of food produce and possible
supply crises and inflationary pressure. This piece attempts to analyze available data on
the topic and shows that there is not enough evidence to support the idea of substitution or
hindrance to crops and that there is a general drop in the production of agricultural goods.

JEL Classification: Q18; Q42; L66.